What an FD-backed card is
An FD-backed credit card, also called a secured credit card, is issued by a bank against a fixed deposit you hold with that bank. The bank places a hold on the deposit, called a lien, and gives you a credit card with its own limit linked to the deposit.
You use it like any other credit card: pay in shops and online, receive a monthly statement and repay it. The deposit is security for the bank. It is not the money you spend from.
Why the bank asks for a deposit
A deposit lets the bank consider your application without relying only on salary slips or an existing credit history. That is why these cards suit people starting out: students, homemakers, freelancers, people who are self-employed, and anyone whose income does not show neatly on paper.
The bank still checks your age, KYC documents and its other eligibility rules, and it decides whether to approve the card.
How the credit limit is set
Each card links its limit to the deposit in its own way, usually as a share of the FD, such as most or all of it. The bank sets the final limit when it approves the card.
The cards listed on YourFirstCard show their minimum deposit and limit side by side, so you can see what a given deposit gets you before you apply.
Your FD keeps earning interest
The deposit stays yours and keeps earning the bank's deposit interest while it is under lien. What changes is that you generally cannot withdraw it while the card is open or while any card dues remain.
You still pay the bill
This is the part people most often misunderstand. The FD is security, not the monthly payment. Your card bill is due every month, and you repay it from your own money, ideally in full by the due date.
If you miss payments, interest and late fees may apply, missed payments can affect your credit history, and under its terms the bank may use the deposit to recover unpaid dues. Paying only the minimum due keeps the account current but leaves the rest of the balance to attract interest.
Closing the card and getting your FD back
To release the lien, you clear any outstanding dues and follow the bank's card closure process. The bank then releases the hold on the deposit, under its deposit terms, including any rules on closing an FD early.
Can you use an FD you already have?
That depends on the bank. Some cards need a new deposit opened for the card; others may accept an eligible deposit you already hold with them. An FD at one bank cannot back a card from a different bank.
Cards you can apply for now
These FD-backed cards are open for applications on YourFirstCard today. Each bank sets its own terms and decides on approval.
- IOB RuPay Classic Credit Card from Indian Overseas Bank: minimum FD ₹2,500, annual fee ₹0.
- IOB RuPay Platinum Credit Card from Indian Overseas Bank: minimum FD ₹12,500, annual fee ₹250 + GST.
- IOB RuPay Select Credit Card from Indian Overseas Bank: minimum FD ₹2,25,000, annual fee ₹500 + GST.
- IOB ZET Credit Card from Indian Overseas Bank with ZET: minimum FD ₹2,500, annual fee ₹0.
- DCB ZET Credit Card from DCB Bank with ZET: minimum FD ₹2,000, annual fee ₹0.
- SBM ZET Credit Card from SBM Bank India with ZET: minimum FD ₹2,000, annual fee ₹0.
Common questions
- Does my FD keep earning interest while it backs a credit card?
- Yes. It keeps earning the bank's deposit interest while it is under lien. You generally cannot withdraw it while the card is open or while card dues remain.
- Is the FD used to pay my credit card bill?
- No. The FD is security for the bank. You still repay the monthly bill from your own money. If dues go unpaid, the bank may use the deposit to recover them under its terms.
- Can I use an FD from another bank?
- No. The deposit has to be with the bank that issues the card. Some banks accept an eligible existing deposit with them; others need a new one.