The one real difference
A regular credit card is unsecured: the bank relies on your income documents and credit history. An FD-backed card is secured: the bank relies on a fixed deposit you hold with it, under a lien.
Side by side
- Who can apply: regular cards usually want income proof and a credit history. Some FD-backed cards need neither, though the bank still runs KYC and its own checks.
- Credit limit: a regular card's limit depends on your income and record. An FD-backed card's limit is linked to your deposit.
- Your money: with an FD-backed card, the deposit stays yours and keeps earning interest, but is held while the card is open.
- The bill: the same for both. You repay it every month from your own money.
- Building history: both can help when the bank reports the account and you pay on time.
When an FD-backed card makes sense
When you have no credit history, no salary slip, or a regular card application has been turned down, and you have savings you can keep in a deposit for a while.
When a regular card makes sense
When you already have steady, documented income and a credit history, and you would rather not keep money tied up in a deposit. Many people start with an FD-backed card and apply for an unsecured one later.
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
- What is a secured credit card?
- A credit card issued against security, usually a fixed deposit with the issuing bank. The bank holds a lien on the deposit and gives you a card with a limit linked to it.
- Is an FD-backed card a real credit card?
- Yes. You use it and repay it like any credit card; the deposit is security for the bank, not the money you spend.
- Can I move from an FD-backed card to a regular card?
- Many people do once they have a credit history and documented income. Whether a bank offers you an unsecured card is its own decision.