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.