FDs act as a security deposit for your credit card. This lets you
get a card even if you don’t have a credit score or are at a
location where we cannot get you a card without this refundable
security deposit. You instantly get 90% of your FD amount as credit
limit, while earning an interest rate on your FD!
What happens if I need the money I deposited in the FD?
The FD is created with Federal Bank, it is completely safe and 100%
insured by DICGC up to ₹5 lakh. You can get this money back in your
Savings Account anytime by closing the credit card linked with it.
Why should I get a credit card if I already have the money for an
FD?
An FD-backed card gives you multiple benefits. By making timely
repayments, you build and improve your credit score, which helps you
get approved for loans in the future. There are also offers and
rewards that you earn on the card. Additionally, your money is
invested safely in an FD which earns up to 7.4% p.a.
Will I need to repay a monthly credit card bill if I give a
deposit?
Yes. The money is invested safely in an FD and is not touched. You
can spend using your credit card up to your credit limit and are
expected to pay the same back every month. Failure to do so will
lead to interest and other charges.