Introduction: The Top 5 FD Cards in India
For students and first-time credit card users, building a solid credit history can seem daunting. However, our top 5 fd cards offer an excellent solution, especially for those with limited or no credit history. FD cards (FD based credit cards) are secured against a fixed deposit, making them a reliable choice for both the cardholder and the issuing bank.
I remember how the SBM One Credit Card was instrumental in establishing my own credit score. If you’re in a similar position, looking to build your credit profile while enjoying the perks of a credit card, FD-based cards could be the ideal option for you.
In this blog, we’ll delve into the top 5 FD-based credit cards available in India. We’ll explore their features, benefits, and how they can be particularly advantageous for students.
Why Choose FD-Based Credit Cards?
FD-based credit cards offer a gateway to financial independence without the risks associated with unsecured credit. They are ideal for students and first-time users because they require a fixed deposit as security, reducing the likelihood of default.
Credit Cult: The Top 5 FD Cards
1. SBM One Credit Card
Joining/annual Fees
FD RATE
FD Requirement
Credit LImit
Early withdrawal
Nil
6.55%
₹2,000
100% of fd
allowed
Why Choose It?: Upto 25% Valueback Offers on Stores Around| 100% Credit | Discount on E-commerce | #Best
- #MetalCard
- 1 reward point on every Rs. 100 spent
- No savings account required
- Up to 50 days of interest free credit period
- 1% fuel surcharge waiver
- zero forex convenience fees
- Full control from the user-friendly OneCard App
2. IDFC First Wow Card
Joining/annual Fees
FD RATE
FD Requirement
Credit LImit
Early withdrawal
Nil
7.5% p.a.
₹10,000
100% of fd
No
Why Choose It?: 100% Credit | 50% off on BMS Ticket | 10% Instant Discount on Flipkart/Myntra/TataCliq
- 50% off on BookMyShow Movie Tickets
- Setup your own credit limit by fixed deposit anytime, anywhere
- Great partner offers 300+ brands like Myntra, Flipkart, Ajio, etc.
- Zero Forex Conversion Fee
- Personal Accident cover of up to Rs.2,00,000
- Fuel surcharge waiver of 1% upto Rs. 200/month
- 10% Instant discount on Flipkart
- 10% Instant discount on Myntra, AJIO, Tata CliQ,1MG
- 15% Instant discount on Tata CliQ, Palette, Sugar cosmetics, Zomato
- 10-20% Instant discounts on Travel bookings on Yatra, Adani one, MMT , GoIbibo etc
3. Kotak Mahindra Card
Joining/annual Fees
FD RATE
FD Requirement
Credit LImit
Early withdrawal
Nil
bank fd rates
₹5,555 or ₹10,000
90% of FD
Not disclosed
Why Choose It?: UPI Enabled | 1% Valueback on Online Spends | Milestone Offers | Online Offers by Bank
- Cash withdrawal allowed up to 90% of the credit limit
- 1% fuel surcharge waiver on all petrol pumps (between Rs. 500 and Rs. 3,000) (Maximum Rs. 3,500 per year)
- Up to 48 days of interest-free cash withdrawal from the date of purchase made (Fee Applicable)
- 500 bonus reward points on Rs 5,000 spends in the first 45 days
- Milestone Program on spends of 75,000/more – Earn Cashback of Rs 750 or Get 4 PVR Tickets
4. ICICI Instant Platinum
Joining/annual Fees
FD RATE
FD Requirement
Credit LImit
Early withdrawal
Nil
Bank fd rates
₹50,000
Not disclosed
not disclosed
Why Choose It?: 10% Instant Discount and No-Cost-EMI on Online Platforms | Movie Discounts
Enjoy waiver of 2.5% fuel surcharge on fuel purchases at HPCL Petrol Pumps when the Card is swiped on the ICICI Merchant Services swipe machines. Fuel surcharge waiver is applicable only for transaction up to Rs 4000.
Earn 2 ICICI reward points on every Rs 100 spent except on fuel purchases. Redeem your ICICI reward points for attractive products.
- Dining Offers on TGI Fridays, Café Coffee Day, Pizza Hut, etc through ICICI Bank Culinary Treats Program
5. SBI Unnati Credit Card
Joining/annual Fees
FD RATE
FD Requirement
Credit LImit
where to apply
Nil (for 4 years)
bank fd rates
25,000
Not disclosed
Apply in branch
Why Choose It?: Online Offers | Milestone Benefit
- No annual fee for the first 4 years
- 1 reward point per Rs. 100 spent
- 1% fuel surcharge waiver of up to Rs 100 per statement cycle (spend between Rs. 500 – Rs. 3,000)
- Milestone Rewards – Rs 500 cashback on achieving annual spends of Rs 50,000
- Attractive offers & discounts from Zomato, Xiaomi, Amazon, ClearTrip, Ajio, MakeMyTrip and other top brands
Benefits of FD-Based Credit Cards
FD-based credit cards come with several advantages that make them an attractive option for students and those new to credit:
- Easy Approval: These cards are secured against an FD, making approval easier even for those with no credit history.
- Credit Building: Regular usage and timely payments help in building a credit score, essential for future credit needs.
- Low Risk: The risk is lower for both the bank and the cardholder, as the FD acts as collateral.
- Rewards and Offers: Despite being secured, these cards offer rewards, discounts, and other benefits similar to unsecured credit cards.
- Flexibility: The fixed deposit earns interest, and the credit card allows for flexibility in managing expenses.
Pros and Cons of FD Cards
Pros:
- Easy Approval Process: Since these cards are backed by a fixed deposit, the approval process is straightforward.
- Builds Credit History: A good option for those looking to establish or improve their credit score.
- Low Default Risk: The FD acts as a security against default, reducing financial risk.
Cons:
- Tied-Up Funds: Your funds are tied up in a fixed deposit, limiting liquidity.
- Lower Credit Limits: The credit limit is usually a percentage of the FD amount, which may be lower than unsecured cards.
- Potential Fees: While some cards offer zero fees, others may have charges for services or delayed payments.
Credit Cult Conclusion
FD cards are a practical choice for students and individuals new to credit. They offer a low-risk way to build credit while enjoying the benefits of a credit card. Among these, the SBM One CreditCard stands out for its zero annual fee and attractive offers, making it a top choice. By choosing one of the top 5 FD-based credit cards in India, you can take the first step towards financial independence.
Happy Spending!
FAQs: FD Cards in India
An FD-based credit card is a secured credit card issued against a fixed deposit. The FD acts as collateral, reducing the risk for the bank.
Yes, students can apply for FD-based credit cards, provided they have a fixed deposit with the issuing bank.
Yes, regular usage and timely payments on an FD-based credit card help in building a positive credit score.
If you default on your payments, the bank may use the FD to recover the outstanding amount.
Some FD-based credit cards offer zero annual fees, while others may charge nominal fees depending on the card and the bank’s policies.
