When most people think of a fixed deposit (FD), they imagine a safe place to park money and earn stable returns. But did you know your FD can also help you unlock the power of a credit card—without the usual income or credit score requirements?
A fixed-deposit-backed credit card (also known as a secured credit card) has several hidden advantages that many customers miss.
Below are some benefits you can enjoy when you use your FD to get a credit card:
- Easy Approval, Even with Low or No Credit Score
If you’re new to credit or have a low credit score, getting a regular credit card can be difficult.
But an FD credit card has relaxed eligibility criteria because the bank holds your deposit as security.
This makes approval faster and much easier.
- Build or Repair Your Credit Score
Using your FD to get a credit card is one of the safest ways to build a strong credit history.
As you use your card and pay bills on time, your credit score improves—helping you qualify for better financial products later, such as loans at lower interest rates.
- Higher Credit Limit with Low Risk
Banks often offer a credit limit of 75% – 90% of your FD value under this arrangement.
This means if you have a ₹1,00,000 FD, you could get a credit limit of up to ₹90,000—much higher than many first-time credit cards.
- No Need to Break Your FD
The best part? Your FD continues to earn interest even when it is linked to a credit card.
So you enjoy the benefits of a credit card without sacrificing your savings.
- Lower Fees and Better Offers
FD-backed cards often come with lower joining fees, fewer documentation requirements, and attractive rewards—making them a smart financial choice for students, freelancers, and new professionals.
- Emergency Backup Without Affecting Your Savings
Your credit card acts as a backup fund for urgent or unexpected expenses, while your FD remains untouched.
This gives you financial flexibility without compromising your long-term goals.
- Ideal for First-Time Credit Card Users
If you’re just starting your financial journey, an FD-based card teaches you credit discipline. You learn how to manage spending, EMIs, and repayments—without the risk of overspending beyond what you can handle.
Conclusion
Using a fixed deposit to secure a credit card is a smart, low-risk way to gain access to credit, build your financial profile, and enjoy card benefits—without worrying about income proof or credit score barriers.
It’s one of the safest ways to step into the world of credit while keeping your savings protected and growing.
