Credit card against fixed deposits | Fusion - WeRIndia

This is an alternative route for those who want a credit card but fail to meet the eligibility criteria to avail one. This is called credit card against fixed deposit. Only few banks are giving this opportunity to customers. Customers can use it to get an instant credit card by opening a fixed deposit with the bank.

This is very useful for those who have low credit history, people who are self-employed or people who have been rejected with credit card applications. They simply have to open a fixed deposit. The amount if the fixed deposit will determine the credit limit. If you fail to repay the amount on time, then the money will repaid from your fixed deposit. Here are some features by various banks which offer this service.

1) ICICI Bank

• The Cardholder has to maintain/place a Fixed Deposit of minimum Rs.20,000 amount with ICICI Bank.
• Interest rate will be 2.49 per cent per month.
• The Credit limit will be 85 % of fixed deposit up to a maximum of Rs.3 lac.
• The fixed deposits opened / placed by HUFs, partnership firms, minors shall not be entitled for Instant Credit Card.
• The Instant Credit Card shall be activated post lien is marked on the Fixed Deposit.

2) SBI Advantage Plus Card

• Credit limit will be 85 per cent of your FD.
• Interest rate will be 2.25 per cent every month.
• Joining and annual fees are Rs.500.

3) Axis Bank

• The minimum Fixed Deposit requirement for Insta Easy Credit Card is Rs 20,000 and maximum is Rs.25,00,000. Insta Easy Credit Card cannot be issued against Tax Saver FDs, Flexi-Deposits (Auto-sweep FDs), FDs in the name of HUF/society/trust/companies. Insta Easy Credit Card cannot be issued to minors.
• Joining Fee Rs.500.
• Finance Charges (Retail Purchases & Cash) 2.50% per month (34.49% per annum)

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