Credit Card Against Fixed Deposit Offered at Most Banks, If Not All Ram Sehgal, a senior software engineer working in a multinational company, had enjoyed a great phase of his credit card life, embracing the journey of rewards, cashback while relaxing on lounges and beaches around the world. But there came a dark chapter as Ram went on an overdrive spending on both necessary and unnecessary stuff and raising the bill amount beyond his comfort. Successive payment defaults meant that he had to close the credit card account by virtue of a debt settlement. Two years after the fiasco, he applied for a card only to face the rejection that was so evident given his poor past. Although debt settlement is something you should not fall into, it can happen with most given the impulsive buying tendencies, let’s not single out Ram alone. However, Ram had forgotten to apply for a credit card against fixed deposit. So, if your poor past is holding you back, you can think of keeping the fixed deposit as a collateral to get a credit card. What Are Credit Cards Against Fixed Deposit Called and How Do They Function? These are called secured credit cards as banks can take over your fixed deposit in case you fail to clear the dues. These cards may not require you to pay the joining and annual fees. The credit limit of these cards can be set at about 80%-90% of the fixed deposit value. Also, the bank can stipulate a condition wherein you need to book a fixed deposit of specific value for you to be granted with a credit card. Generally, the interest rate on the revolving balance of secured credit cards is lower than their unsecured counterparts. List of Top Credit Cards Against Fixed Deposit You can choose from the following list of credit cards that are offered against a fixed deposit. ICICI Bank Instant Platinum Credit Card The card offers the following benefits.
● Get your reward points redeemed into cash ● 2 PAYBACK points on every retail spend worth ₹100. The spend, however, does not include the fuel transactions. ● A discount worth ₹ 100 on up to 2 movie tickets a month at BookMyShow ● A minimum 15% discount while dining at more than 800 restaurants via Culinary Treats Program SBI Card Unnati The card, which is offered against the fixed deposit of ₹25,000 with SBI, comes with the following benefits. ● No annual fee for the first four years of the card membership ● Get 1 reward point for every ₹100 spent ● Redemption of rewards available against a host of gifts from the rewards catalogue ● Get a cashback worth ₹ 500 on spends of ₹ 50,000 or more in a year ● No need to pay the fuel surcharge on swiping the card for transactions worth between ₹ 500 and ₹ 3 ,000, excluding GST and other charges ● Any transaction worth 2,500 and above can be converted into installments for tenures ranging from 3-24 months ICICI Bank Coral Credit Card Against Fixed Deposit The Coral credit card is offered against a fixed deposit or without the same. But, a poor credit history or no repayment track can make you apply for this card by keeping the fixed deposit as a collateral. You can get the following benefits. ● ● ● ● ●
Accumulate 2X rewards on dining, supermarket and grocery spends Every ₹ 100 spent on insurance and utilities to fetch you 1 PAYBACK point Book 1 movie ticket at BookMyShow and get one free A minimum 15% discount can be availed while dining at over 800 restaurants Complimentary airport lounge access