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Credit Card Against FD (fixed deposit) How To Get An FD Credit Card


by Mahindra Finance


April 25, 2024


4 mins read

Are you looking to get a credit card but worried about your lack of credit history? Don't fret! There's a solution that can help you secure a credit card even without a credit score. It's called a fixed deposit credit card.

In this blog post, we will explore what is an FD credit card, how it works, and who can apply for one: 

Benefits of FD-backed credit cards:

So, what is a credit card against FDand what are its benefits? Let's explore them as follows:

1. Get a credit card with zero credit history:

If you've never taken a loan or used a credit card before, it can be challenging to establish a credit score. However, with an FD-backed credit card, your fixed deposit account acts as collateral, allowing you to get a credit card even without any credit history. By getting a fixed deposit credit card, one can make purchases on credit and begin establishing his credit history.

2. Continue generating FD interest:

When you opt for a credit card against your fixed deposit, your money continues to earn interest at the applicable rate. This means you don't have to sacrifice the growth of your savings while enjoying the benefits of having a credit card.

3. Minimal documentation:

Applying for a fixed deposit credit card requires minimal documentation. Since you already have an existing FD account with the bank, the application process is faster and hassle-free.

4. Start enjoying rewards and privileges:

Depending on the type of credit card you choose, you can enjoy a wide range of rewards and privileges. These may include discounts, cashbacks, reward points, and exclusive access to airport lounges or shopping benefits.

Can you close the FD midway with an FD-backed credit card?

No, you cannot close the fixed deposit account midway when you have an FD-backed credit card. However, most banks allow partial withdrawals based on your credit limit and the deposit amount.

Who can get an FD credit card?

If you are a resident Indian above 18 years old, you are eligible to apply for a fixed deposit and become eligible for an FD-backed credit card.

Key takeaways:

  • A credit card against FD allows you to get a feature-packed credit card even without any credit history.
  • Use your credit responsibly to improve your credit score.
  • Your fixed deposit continues to generate interest while using your FD-backed credit card.
  • Applying for an FD-backed credit card requires minimal documentation.
  • Enjoy rewards and privileges based on the type of credit card chosen.


Getting a credit card without a credit history can be a challenge, but with an FD-backed credit card, it becomes easier and more accessible. By leveraging your fixed deposit as collateral, you can enjoy the benefits and convenience of having a credit card. Remember to use the credit responsibly to build your credit score over time.

If you're interested in exploring FD-backed credit cards further, Mahindra Finance offers a range of financial solutions that may suit your needs. Visit the Mahindra Finance website or contact customer care for more information


Q: What is an FD credit card?

A: An FD credit card is a type of secured credit card that is issued against a fixed deposit account. It allows individuals without a credit history to access the benefits of having a credit card.

Q: Can I apply for a credit card against my FD even if I have an existing loan?

A: Yes, you can still apply for an FD-backed credit card even if you have an existing loan. The bank considers your fixed deposit as collateral and assesses your eligibility based on that.

Q: Is there any difference between an FD Credit Card and a regular credit card?

A: The main difference between an FD-backed credit card and a regular credit card is that the former is secured by a fixed deposit, while the latter relies on your credit score and income.

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