Best Credit Cards Against Fixed Deposit: Meaning, Benefits and How To Apply

Last Updated on April 10, 2026 by Muskan Sinha

In today’s digital economy, where the financial world is ever-evolving and growing, having a credit card has become more essential than ever. With credit cards, users get reward benefits and cashbacks on almost everything from travel, online shopping, dining, entertainment, lifestyle and more. With rewards raining on every transaction, nobody would want to miss out on exclusive deals and card benefits that go beyond ordinary cashbacks. However, obtaining a regular credit card is quite challenging due to the eligibility criteria, and this is where a credit card against an FD comes as a game-changer.

Individuals with a low or no credit history, low income, irregular employment or a poor CIBIL score often struggle to find the best credit card. For them, credit cards against FD is a safer way to step into the world of credit. Such credit cards are issued by keeping your FD as collateral. It bridges the gap between financial need and eligibility, giving almost anyone access to the benefits of a credit card – regardless of their credit history or income level. Most banks in India offer credit cards against fixed deposits to make it easier for first-time credit users to build their financial profile.  

What is a Credit Card Against Fixed Deposit?

A credit card against a fixed deposit is a secured credit card issued by a bank that pledges your FD as collateral. This means that in order to get a credit card, you must first apply for an FD with the respective bank. Unlike regular credit cards, these cards do not need a minimum income level, credit score or employment status, making them ideal for first-time credit users, students who want to build credit early or those individuals with a low/damaged CIBIL score who want maximum savings with card benefits. 

Your FD stays intact with the bank and continues to earn interest, while you get a credit limit linked to 75-90% of your FD and enjoy multiple credit card benefits. For example, you make an FD of Rs 1 lakh and the bank gives you a credit limit of 75,000 to Rs 90,000, which you can use according to your spending habits. The bank places a lien on your FD for the time you use your credit card. This means you cannot withdraw from your FD while your card remains active. So your FD acts as a security if you do not pay the credit card bill on time. 

How to Apply for Credit Cards Against FD?

Applying for a credit card against an FD is a simple process, but it is slightly different from applying for a standard credit card. The following steps take place:

• Open an FD – You open a new FD or use an existing FD with the bank and it acts as collateral. The bank places a lien on the FD, which means you cannot withdraw it while the card is in use. The bank also has the right to recover the dues from your FD if you fail to repay the credit card bill. 
• Apply for the Credit Card – Choose a relevant card and complete the KTC process for approval. 
• Bank Assigns Credit Limit – Based on the FD, the bank sets a credit limit, usually up to 75-90% of the FD amount. 
• Card Usage – After the card is issued, you can use it like a regular credit card to make purchases, pay bills, shop online, travel, entertainment, etc. 
• Repayment – Just like a regular credit card, you receive monthly statements and must pay the outstanding amount by the due date to avoid interest charges. If you fail to pay any amount, the bank has the right to recover it from your FD. 
• Earn Interest on FD – Your FD continues to earn interest while you use your credit card for transactions. 
• Close Your Card – Once you close your credit card and pay the remaining dues, the bank removes the lien and your FD becomes fully accessible to you. 

List of Best Credit Cards Against FD in India 

Credit Card	Annual Fee	Minimum FD
SBI Card Unnati	Rs 0 for the first 4 years	Rs 25,000
IDFC First WOW!	Rs 0	Rs 20,000
ICICI Bank Instant Platinum	Rs 0	Rs 50,000
AU Small Finance NOMO	Rs 199+GST	Rs 10,000
Kotak 811 Dream Different	Rs 0, but joining fee of Rs 250+ GST	Rs 10,000
Bank Of Baroda PRIME	Rs 0	Rs 30,000
IDFC First Earn Card	Rs 499+GST	Rs 5,000
SBM Novio Credit Card	Rs 0	Rs 2,000

SBI Unnati Credit Card 

The SBI Unnati credit card is an entry-level card with no annual fees for the first four years. This card offers reward points on every transaction and the points can be used to redeem gifts from a huge reward catalogue. The card is issued against an FD of Rs 25,000 and comes with milestone benefits, fuel surcharge waiver and no joining fee as well. 

SBI Unnati Card Charges & Features

• Annual Fee – Rs 0 for first 4 years, then Rs 499+GST
• Minimum FD – Rs 25,000
• Reward Points – Get 1 reward point for every Rs 100 spent and use the points to redeem a wide array of gifts from the reward catalogue
• Fuel Surcharge Waiver – 1% on transactions between Rs 500 and Rs 3000
• Milestone Rewards – Receive Rs 500 back in the first 15 days of reaching annual spends of Rs 50,000

IDFC First WOW! Credit Card 

The IDFC First WOW! credit card is a lifetime-free card issued against a minimum FD of Rs 20,000. This card offers rich travel benefits, from a zero-forex markup fee to 4x reward points on every foreign transaction. 

Along with that, it offers 100% credit limit up to the FD amount and offers an interest rate of 6.30%. Cardholders pay zero interest on ATM cash withdrawals for up to 45 days, enjoy a fuel surcharge waiver and get insurance cover up to Rs 2 lakh. 

IDFC First WOW! Card Charges & Features 

• Annual Fee – Nil
• Minimum FD – Rs 20,000
• Interest Rate – 6.30% on FD
• Zero Forex Markup – Pay no extra interest on foreign transactions
• Rewards – Earn 4x reward points on online, offline and international spend
• 100% Credit Limit – Get a credit limit up to 100% of your FD amount
• Fuel Surcharge Waiver – 1% up to Rs 200 per month
• Insurance Cover – Accidental cover up to Rs 2 lakh and lost card liability up to Rs 25,000. 

ICICI Bank Instant Platinum Credit Card 

The ICICI Bank Instant Platinum credit card is a secured card issued against a minimum FD of Rs 50,000 with a tenure period of 180 days. Cardholders pay no joining or annual fees and also enjoy reward benefits on movie tickets and online spending. They can also get a generous credit limit up to 90% of the FD amount and the interest rate will be around 2.49% per month. This card is suitable for people who want to build a strong credit history and redeem maximum benefits. 

ICICI Bank Platinum Card Charges & Features

• Annual Fee – Nil 
• Minimum FD – Rs 50,000 with a tenure period of 180 days minimum
• Interest Rate – 2.49% per month
• Rewards – 25% off on movie tickets booked via BookMyShow and earn 2 reward points on every Rs 100 spent. 
• Credit Limit – Up to 90% of the FD amount
• Fuel Surcharge Waiver – 1% on transactions between Rs 400 and Rs 4000 at all HPCL petrol pumps in India. 

AU Small Finance Bank NOMO Credit Card 

The AU Small Finance Bank NOMO credit card is a secured card issued against a minimum FD of Rs 20,000. This card comes with many rewards and benefits such as airport lounge access, railway lounge access, milestone benefits, welcome benefits, fuel surcharge waiver, low forex markup fee and much more. 

You can redeem reward points for e-vouchers, recharges, bookings and more via AU Rewards. Cardholders can get a credit limit up to 100% of the FD amount, making it one of the most rewarding and best credit cards against FD. Apart from that, the card offers liability protection and credit shield. 

AU Bank NOMO Card Charges & Features

• Annual Fee – Rs 199+GST
• Welcome Benefits – Get 500 reward points on your first transaction within 30 days of card setup. 
• Minimum FD – Rs 20,000
• Credit Limit – 100% of the FD amount 
• Reward Points – Get 2 reward points per Rs 100 spent on retail purchases and 1 reward point on every Rs 100 spent on utility and insurance spends. 
• Lounge Access – 2 complimentary domestic lounge access per quarter on spending Rs 20,000 and 2 railway lounge visits per quarter.
• Milestone Benefits – Earn 500 reward points on Rs 25,000 spend and an additional 500 reward points on Rs 50,000 spend per quarter.  
• Fuel Surcharge Waiver – 1% up to Rs 100 on all fuel stations
• Forex Markup Fee – 0.99% fee on foreign transactions. 

Kotak 811 Dream Different Credit Card 

The Kotak 811 Dream Different credit card is a popular choice for cards against a minimum FD of Rs 10,000. This card offers 90% credit limit of the FD amount, interest-free cash withdrawals, reward points on all purchases, milestone benefits, add-on card benefits, fuel surcharge waiver and balance transfer. This card is ideal for individuals who want to reap maximum card benefits while maintaining their FD. 

Kotak 811 Dream Different Charges & Features

• Joining Fee – Rs 250 + GST for FDs below Rs 20,000. 
• Minimum FD – Rs 10,000
• Credit Limit – 90% of the FD amount
• Cash Withdrawal – You can withdraw 90% of the FD amount with a processing fee of Rs 100 on ATM withdrawals and fund transfer. No interest is charged up to 48 days on a cash advance. 
• Reward Points – Get 4 reward points on every Rs 100 spent online and 1 reward point on other spends. 
• Milestone Benefits – Get an Amazon voucher worth Rs 250 on spending Rs 36,000 in the anniversary year and an Amazon voucher worth Rs 1000 on spending Rs 72,000 in the anniversary year. 
• Fuel Surcharge Waiver – 1% up to Rs 3,500 per year. 

Bank Of Baroda PRIME Credit Card 

The BOB PRIME credit card is issued against a minimum FD of Rs 30,000 and comes with welcome benefits, reward points and attractive deals on online retail stores. Along with being a lifetime free credit card, this card is ideal for people with low or irregular income as there is no need for income proof to be eligible for it. 

This card also offers a fuel surcharge waiver, insurance cover and smart EMI options, making it one of the best credit cards against FD for students and other individuals with low CIBIL scores. 

BOB PRIME Card Charges & Features

• Annual Fee – Nil 
• Minimum FD – Rs 30,000
• Welcome Benefits – Get 500 reward points on spending Rs 5000 in the first 60 days of card issuance. 
• Reward Points – Get 2 reward points for every Rs 100 spent on all categories. 
• Fuel Surcharge Waiver – 1% up to Rs 250 per statement cycle. 
• Insurance Cover – Accidental death cover of up to Rs 15 lakh for air accidents and Rs 5 lakh for non-air accidents. 

IDFC First Earn Credit Card

The IDFC First Earn credit card is a virtual RuPay cashback credit card issued against a minimumFD of Rs 5000. This card offers cashback on every spend and cardholders can get a credit limit up to 100% of the FD amount. Users also enjoy discounts on movie tickets, insurance cover and cashback on travel bookings and their first transaction using the card. You can link your card to any UPI and scan to pay at more than 60M+ merchants for seamless transactions. 

IDFC First Earn Card Charges & Features

• Annual Fee – Nil for first year, Rs 499+ GST from second year onwards
• Welcome Benefits – 10% cashback up to Rs 250 on first transaction
• Minimum FD – Rs 5000
• Credit Limit – 100% of your FD amount
• Cashback – 1% on UPI spend via IDFC First Mobile App, 0.5% on online spends and UPI spends via other apps, 4% on flight bookings and 8% on hotel bookings. 
• Entertainment – Get 25% off up to Rs 100 on movie tickets once a month. 
• Insurance Cover – Accidental cover up to Rs 2 lakh and lost card liability of rs 25,000. 
• Annual Fee Waiver – On annual spend of Rs 1 lakh, the annual fee is waived. 

SBM Novio Credit Card

The SBM Novio Credit Card is a secured UPI credit card issued against a minimum FD of Rs 2,000 via the SBM Credilio app. This card offers unlimited rewards points on all spends and cardholders earn Novio coins which can be redeemed on popular e-commerce stores. 

Cardholders also enjoy welcome benefits worth Rs 5000,  90% credit limit of the FD amount, a 7% p.a. interest on FD, 50% cash withdrawals of the FD amount and interest free period of up to 45 days. This card is ideal for people who want to build a strong CIBIL score of 750 without the need of income proof or a credit score. 

SBM Novio Card Charges & Features

• Annual Fee – Nil 
• Minimum FD – Rs 2000
• Credit Limit – 90% of FD
• Interest Rate – 7% p.a
• Welcome Benefits – On spending Rs 2,000 in the first 30 days, get e-vouchers from top brands worth Rs 5,000. 
• Novio Coins – Earn 10x reward points on your fuel spend and 5x reward points on other spends. Redeem these Novio points at popular brands such as Zepto, Swiggy, Ajio, Domino’s, Nykaa, McDonald’s and more. 

Benefits of a Credit Card Against an FD

• Easy Approval – Credit cards against FD do not follow lengthy and complex approval processes as they do not require any strict eligibility requirements. 
• No Income Proof – These cards do not require any income proof and people with low/poor CIBIL score or no credit history can also avail its benefits. 
• High Credit Limit – Most banks offer up to 90% credit limit against FD, making it easier for people to manage expenses and also eliminating the risk of overspending. 
• Benefits like Regular Credit Cards – You can enjoy card benefits such as cashback, discounts and rewards on online shopping, travel bookings, entertainment, fuel surcharge waiver, lounge access, and more. Despite no income proof, you enjoy the benefits of a regular credit card. 
• Helps to Build Credit Score – With timely and consistent payment of your dues, even without a previous credit history, you will be able to build a strong profile. Once you build a strong credit profile, you will be able to qualify for unsecured credit cards, personal loans and other financial benefits. 
• FD Earns Interest – While you use the credit card for regular purchases, your FD continues to earn interest, making it one of the best financial tools. 

Conclusion 

Credit cards against FDs are the easiest way for people to start or even rebuild their credit history, as they offer easy approval for first-time credit users or those with low/poor credit scores. Not only do they provide a high credit limit, but they also ensure that your FD stays intact and keeps earning interest while you avail the benefits like a regular credit card. Most credit cards are lifetime free, which further helps people save more and build a strong credit profile easily. 

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