What Are Fixed Deposit Credit Cards?

Last Updated : June 10, 2016, 8:36 a.m.

While availing a credit card, one thing that perplexes many people is actually the word called ‘credit’. Yes, because not everyone prefers to be under the debt, even if you have the facility to pay it back within 50 days. Thus, for all the safe players, banks have now introduced the new type of credit cards, commonly known as Fixed Deposit Credit Cards. Yes, these kinds of credit cards are linked to your FD account in the bank.

These days, many leading credit card issuers such as SBI, ICICI, HDFC, Axis, and many more have started offering these exclusive range of fixed deposit credit cards so as to fulfill the varied needs of all the customers. However, when it comes to availing this card, it will not amount to any loss of interest on FD because short-term liquidity is made available without compromising with the long term assets allocation.

Following are the plus points of these FD credit cards:

• These Fixed Deposit Credit Cards being linked to your FD account in the bank, whereby a fixed percentage of FD amount is issued as your credit.
• For these kinds of credit cards, minimal documentation is required.
• These types of credit cards are sanctioned without the in-depth search of your credit history.
• Rewards, cash back, discounts and various other benefits on Fixed Deposit Credit Card are almost the same, just like available on usual credit cards .
• In fact, some fixed deposit credit cards provide you with the fuel surcharge waiver as well.
• Few banks like SBI provide Fixed Deposit Credit Card with an option of payment flexibility. When it comes to stand-out features of this card, it allows the user to pay just the minimum amount every month along with carrying forward the unpaid balance at lowest interest rates i.e. 2.55% per month.
• Not only this, in fact Fixed Deposit Credit Card by Axis Bank is also worth mentioning here. This Insta Easy Credit Card can be taken, if you are having an FD of minimum Rs. 20,000 to Rs. 25,000 in the Axis Bank. With this card, you can easily convert your purchases in EMI so as to have the easy repayment option.
• Whereas, the Fixed Deposit credit card offered by Central Bank of India i.e. Aspire Credit Card provides you with one additional feature. Yes, it offers all the users the personal accident cover against death. But, this benefit will however be available, only if the user comes under its Group Insurance Scheme.
• The Fixed Deposit Credit Cards offered by ICICI Bank along with the Coral & Aqua Gold Card provided by Kotak Mahindra Bank are also quite popular among masses for their spectacular benefits and no-hassle process. The best thing about these cards is the fact that they are linked with your FD sooner than you can imagine.

However, the only hitch while availing these Fixed Deposit Credit Cards is the fact that if you have any default in the payment, the banks would deduct the amount from your Fixed Deposit account. Moreover, if a person is conscious about making all the payments in a timely manner, going for a Fixed Deposit Credit Card is no doubt best option because you will never feel the sword of Debt hanging on our neck.
In fact, nor a user will try to spend more than what he/she is having in the FD account.

Well, must say, it is quite a big reason to opt for Fixed Deposit Credit Cards!