Rewards and Benefits: While secured credit cards may not offer as many rewards and benefits as premium unsecured cards, some may still provide cashback, discounts, or rewards on specific spending categories. Features of Credit Cards against Fixed DepositĬredit cards against fixed deposits, also known as secured credit cards, offer several features that distinguish them from regular unsecured credit cards. Secured cards also offer rewards or cashback benefits like a normal credit card.

Interest and Fees: Secured credit cards may have annual fees and interest rates, although these tend to be lower than those of unsecured credit cards. By using the card responsibly and making on-time payments, you can improve your creditworthiness over time. It’s essential to pay at least the minimum amount due by the due date to maintain a good credit history.Ĭredit Building: One of the primary purposes of a credit card against a fixed deposit is to help individuals build or rebuild their credit scores. Repayment: You are required to make timely payments on your credit card balance each month. You can use this card for various transactions, just like a regular credit card, including making purchases, paying bills, and withdrawing cash from ATMs. For example, if you deposit INR 50,000, your credit limit might be INR 40,000 to INR 45,000.Ĭard Usage: Once your fixed deposit is in place, you’ll be issued a credit card with the assigned credit limit. The fixed deposit acts as security for the credit card issuer, reducing their risk.Ĭredit Limit: The credit limit on your secured credit card is usually a percentage (example: 80-90%) of the fixed deposit amount. The amount you deposit as collateral will determine your credit limit on the card.

This type of credit card is typically designed for individuals with limited or poor credit histories, making it easier for them to access credit and improve their creditworthiness.įixed Deposit: To obtain a credit card against a fixed deposit, you first need to open a fixed deposit account with the issuing bank. What is a Credit Card Against Fixed Deposit?Ī credit card against fixed deposit, often referred to as a “secured credit card,” is a financial product that allows individuals to obtain a credit card by pledging a fixed deposit with a bank or financial institution.

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