Banks offer a secure credit card against a fixed deposit. Some popular banks that offer credit cards in such a way are SBI, Axis, ICICI, etc. You can find more about it at loanbaba.com by reading further. When applications for credit cards are made on this collateral basis, all other factors involved in availing the same become somewhat insignificant. This guarantee keeps the banks relieved regards recuperating their money if credit not paid.
Getting a credit card against fixed deposits is easy. All you have to do is first open a fixed deposit account with the bank. Make sure to invest at least Rs. 20,000 while applying for the card. In case you already have one, you can easily avail a credit card on the same. Once the fixed deposit account is created, you can apply and get confirmation of the credit card application.
There is no impact of the credit cards on your fixed deposit account. You continue to receive the same interest rate that was set on opening the account. However, the impact of credit will be seen on the bill payment. If you haven't made the payment, the outstanding amount will be adjusted with your FD. Thus, if you do not want to disturb your savings, always make your bill payments on time.
It further helps in building your credit score. Further, in the case of an emergency, you can use your credit card rather than closing your fixed deposit account. Banks offer enough time to make repayments of the outstanding bills. Thus, taking loans becomes easier.