can I get SBI credit card against fixed deposit?

Yes, you can get credit card against fixed deposit (FD). An FD is one of the most preferred modes of investment in our country and an FD that also offers you a credit card is a win-win situation for those who want to improve/build their credit score.

What is a Credit Card against Fixed Deposit?

A credit card against FD is a secured credit card. Having an FD account is the prerequisite for getting a credit card against a fixed deposit. Several banks, such as SBI and SBM Bank (India) offer this facility with their fixed deposits.

One of the main features of this credit card is that the linked fixed deposit is lien marked, i.e. acts as collateral. The credit limit is usually 80% to 90% of the fixed deposit amount. I want you to know that the lien-marked fixed deposit keeps on earning interest.

If you miss the monthly credit bill payment, the bank can redeem the linked fixed deposit for recovering the outstanding amount. Fees charges on a credit card against fixed deposit are generally lower than on an unsecured card and these cards get approved easily.

The State Bank of India offers SBI Unnati Credit Card on a minimum FD amount of Rs. 25000. Its features include:

• No fee for the first four years

• Rs. 499 annually charged from fifth year

• One reward point per Rs.100 spent

• 1 percent fuel surcharge waiver (on purchases between Rs. 500-3000)

• Accessible around the globe

Should You Apply for Credit Card against FD

• A secured credit card against fixed deposit is a perfect choice for those who:

• Need a credit card but are not able to get one

• Does not have a regular income

• Have a poor credit history/no credit history

• Don’t have an income proof

• Housemakers, freelancers, etc.

• Have an entry-level job (with low income)

• bureau meter

• A good credit score will open several credit card options for you.

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