Secured Credit Cards Against Fixed Deposit
FD-backed credit cards for people with no or poor credit history — limits, minimum deposits, costs and how to graduate to an unsecured card.
Updated 28 September 2026 · 107 cards from 17 issuers trackedWhat you need to know
A secured credit card is issued against a fixed deposit that the bank marks under lien. The credit limit is typically 75%–90% of the FD, and the FD keeps earning interest. Because the bank’s risk is covered, most issuers ask for no income proof and don’t reject for a low or missing credit score, making it the most reliable way to start or rebuild a credit history.
- Minimum FD ranges from about ₹2,000 (SBM) to ₹10,000–₹25,000 at large banks (Kotak ₹10,000, IDFC FIRST ₹20,000, SBI Card Unnati ₹25,000; ICICI ₹50,000).
- Repayments are reported to credit bureaus exactly like an unsecured card — on-time payments build your score.
- SBI Card charges a lower 2.75% a month (33% a year) interest on secured cards, versus 3.75% on unsecured cards.
Secured and student cards compared
| Card | Issuer | Joining / annual fee | Min. income | Best for |
|---|---|---|---|---|
| SBI Card Unnati | SBI Card | Free / Free | No income proof or credit score needed; SBI FD of Rs 25,000 | Students and new-to-credit users |
| ICICI Bank Instant Platinum Credit Card (against FD) | ICICI Bank | Free / Free | Age 18+ resident with ICICI FD of Rs 50,000+; no income pro… | Students/first-time users building credit against an FD |
| Kotak 811 Dream Different | Kotak Mahindra Bank | Free / Free | Secured against FD | Credit-building for new-to-credit users |
| Kotak NRI Royale Signature | Kotak Mahindra Bank | Free / ₹1,000 | NRIs holding NRE/NRO term deposit with Kotak | NRIs wanting an INR card backed by NRE/NRO FD |
| Canara Bank RuPay Select Secured | Canara Bank | — / — | — | Building credit history against an FD |
| IDBI Bank Imperium Platinum | IDBI Bank | ₹499 / ₹499 | — | Secured card against FD (min Rs 20,000; limit up to 85% of FD) |
| BOI Swadhan RuPay Platinum | Bank of India | Free / Free | — | Secured card against term deposit |
How a secured card works
- Open or pledge an FDBook an FD with the issuing bank (often a minimum tenure applies, e.g. 180 days with auto-renewal at ICICI) and give consent to mark a lien.
- Get a limit linked to the FDFor example, a ₹50,000 FD at 80% gives a ₹40,000 limit. IDBI Imperium Platinum allows up to 85%; ICICI up to 90%.
- Use and repay like any cardYou get the usual interest-free period. Pay the full bill by the due date; the FD is not touched for normal repayment.
- If you defaultAfter due notice, the bank can recover dues by liquidating the lien-marked FD — and the default is still reported to the bureaus.
- Graduate after 6–12 monthsWith a clean record and a score above about 750, ask for an unsecured card; then close the secured card and the lien is released.
Things to check before applying
- Fees: several FD-backed cards are lifetime free (Kotak 811 Dream Different, BOI Swadhan RuPay Platinum); SBI Card Unnati is free for 4 years and ₹499 + GST from year 5.
- Whether the FD must stay with the bank for the card’s life, and whether premature withdrawal closes the card.
- Interest rate on revolved balances — it is usually the same as unsecured cards except at issuers like SBI Card.
- Keep utilisation low: on a ₹20,000 limit, a ₹15,000 bill is 75% utilisation and can hold your score back even if paid in full.
- Choose a RuPay secured card (Canara RuPay Select Secured, BOI Swadhan) if you want to pay by UPI with it.
Check your utilisation on a small limit
Frequently asked questions
Who should get a secured credit card?
People with no credit history (students, first job, homemakers, returning NRIs), those with a low score after past defaults, and anyone without formal income proof who still has savings to place in an FD.
Does a secured card improve my CIBIL score?
Yes. It is reported as a credit card account; on-time payments and low utilisation build your score. Since January 2025 lenders report to bureaus at least fortnightly, so changes show up faster.
Can I break the FD while the card is active?
Generally not without closing the card or reducing the limit, because the FD is under lien. You can usually still earn interest and renew it.
Is interest lower on a secured card?
At some issuers. SBI Card charges 2.75% a month on secured cards against 3.75% on unsecured ones. Many others charge the same rate, so treat it as a card you pay in full, not a cheap loan.
Card features, fees and reward rates are compiled from issuers’ published terms and reputable card-review sites (source and date on each card page). Issuers change benefits often — confirm the latest MITC before applying.