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Understanding Fixed Deposit Credit Cards

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Preeti Bala
Written by Preeti Bala

Many Could Benefit From A Fixed Deposit Credit Card

CreditSmart.in Improving India's Credit EverydayOne thing that perplexes a few people while availing a credit card is the word ‘credit’. Not everyone prefers to be under debt even if it is to be paid within 50 days! So for those safe players, banks have introduced new type of credit cards – Fixed Deposit Credit Cards which are linked to your FD account in the bank. Availing this card will not amount to any loss of interest on FD as short term liquidity is made available without having to compromise with the long term asset allocation.

The plus points of these FD based credit cards are –

  • Fixed Deposit Credit Card is liked to your FD account in the bank whereby a fixed percentage of FD amount is issued as your credit
  • Minimum documentation required
  • The credit card is sanctioned without in-depth search of one’s credit history
  • Rewards, cash back, discounts and other benefits on Fixed Deposit credit card are more or less same as available on other credit cards. Some Fixed Deposit Credit Cards also offer fuel surcharge waiver as well.
  • Some banks like SBI even offer Fixed Deposit Credit card with an option of flexibility in payment. The stand-out feature of this card is that the user can pay just the minimum amount per month while carrying forward the unpaid balance at lowest rate of interest which is just 2.55% per month.
  • There is one more worth mentioning Fixed Deposit Credit Card by Axis Bank, the Insta Easy Credit Card which can be taken if you have an FD of minimum Rs.20,000 up to Rs.25,00,000 in Axis Bank. With this credit card you can convert your purchases into EMI for easy payments.
  • The credit card based on fixed Deposit in Central Bank of India, the Aspire Credit Card has one extra feature also. It offers the users a personal accident cover against death; the benefit will however be available only if the user comes under Group Insurance Scheme.
  • The FD Credit Cards of ICICI Bank, the Coral Card and Aqua Gold Card by Kotak Mahindra Bank are equally popular for their amazing benefits and no-hassle process. You may get your card linked with FD sooner than you can imagine.

The only hitch while taking Fixed Deposit Credit Card is in case of any default in payment, the banks would deduct the amount from your FD. However, a person who is conscious about making all payments right on time, a Fixed Deposit Credit Card is the best option as you will never feel the sword of ‘Debt’ hanging on your neck nor will a user try to spend more than the amount he or she has in his or her FD account! Quite a big reason to take up this type of credit card.

About the author

Preeti Bala

Preeti Bala

Preeti Bala is a financial writer from India, with a background in technology as well. With years of expertise in writing, she is a versatile personality and eager to learn always. Apart from this professional stuff she has great interest in traveling, games, and the outdoors.

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