Key Takeaways
- FD-backed credit cards use fixed deposits as collateral, providing access to credit for users with limited credit history.
- Kotak811 DreamDifferent offers up to 90% of the FD value as credit with no income proof or CIBIL requirement.
- SBI Unnati requires an SBI fixed deposit of ₹25,000 or more and offers rewards alongside milestone cashback benefits.
- Axis MY ZONE EASY combines FD-backed eligibility with movie cashback, reward points, and EMI conversion.
- Comparing cashback, rewards, lifestyle benefits, and eligibility requirements can help identify a suitable FD credit card.
- Responsible usage, timely payments, and healthy credit utilisation remain important when building or improving credit history.
Did you know that India had over 11 crore outstanding credit cards in circulation by September 2025? As more and more people begin their credit journey, FD-backed credit cards have emerged as a convenient way to access credit while keeping the security of a fixed deposit.
These cards are ideal for first-time users, students, young professionals, and those with little or no credit history, as they are issued against a fixed deposit.
Three popular options in the FD credit card category are the Kotak811 Dream Different Credit Card, SBI Unnati Credit Card, and Axis MY ZONE EASY Credit Card. While all three are designed to support users starting their credit journey, their features and benefits differ. A closer look can help you find the card that best matches your financial needs and spending habits.
What Is an FD-Backed Credit Card?
An FD-backed credit card is a secured credit card issued against a fixed deposit maintained with the bank. To put it simply, the deposit acts as collateral or security. This allows the bank to offer a credit card without requiring major income documents or an existing credit score.
{{/usCountry}}An FD-backed credit card is a secured credit card issued against a fixed deposit maintained with the bank. To put it simply, the deposit acts as collateral or security. This allows the bank to offer a credit card without requiring major income documents or an existing credit score.
{{/usCountry}}For many customers, this means they have a convenient pathway to:
- Access the convenience of credit cards
- Enjoy select rewards and benefits
- Build or improve credit history
- Learn responsible credit usage
To find the best FD-based credit card for your needs, check what you prioritise: cashback, rewards, lifestyle benefits, or ease of eligibility.
Comparing the Three Cards
1. Kotak811 Dream Different Credit Card
The Kotak811 Dream Different Credit Card has been designed to offer simplicity and value through straightforward cashback benefits. It provides a credit limit of up to 90% of the FD value.
Key highlights:
- Flat 2% cashback on eligible credit card spends, up to ₹500 per month ( ₹6,000 per year)
- Cashback on eligible UPI transactions through the RuPay variant, subject to applicable caps
- No income proof or CIBIL score requirement
- Ability to continue earning interest on the linked fixed deposit
- Allows users to increase credit limit by linking multiple FDs
- Option to convert purchases into EMIs
- Fuel surcharge waiver benefits
One of the key benefits of the Kotak811 Dream Different Credit Card is its simple cashback structure. Instead of collecting reward points and redeeming them later, the eligible cashback is credited directly. This makes it easy to track and enjoy the benefits.
2. SBI Unnati Credit Card
The SBI Unnati Credit Card is another FD-backed option ideal for customers looking to begin their credit journey.
Key highlights:
- Issued against an SBI fixed deposit of ₹25,000 or more
- Annual fee waived for the first four years
- ₹500 cashback on annual spending of ₹50,000
- Earn 1 reward point for every ₹100 spent
- Fuel surcharge waiver on eligible transactions
The SBI Unnati Credit Card may suit users who prefer a rewards-based experience, as it allows them to earn reward points on eligible spends. They can then redeem these rewards through the catalogue. This fixed deposit credit card also offers milestone benefits, including cashback upon achieving specified annual spending thresholds.
3. Axis MY ZONE EASY Credit Card
The Axis MY ZONE EASY Credit Card combines the security of a fixed deposit-backed product with lifestyle-focused benefits.
Key highlights:
- Fixed deposit-backed secured card with minimal documentation
- 25% cashback on movie tickets (online and box office)
- Access to credit-free periods as per card terms
- Reward points through the bank's rewards programme
- EMI conversion facility
- Guaranteed approval on application
The card's movie-related benefits can be attractive for those who tend to spend on entertainment and lifestyle-related categories.
Factors to Consider Before Choosing
Are you wondering which is the best FD-based credit card for you? You can consider the following to help you make the right decision:
1. Reward Structure
Ask yourself whether you prefer:
- Direct cashback
- Reward points
- Category-specific lifestyle offers
A card that aligns with your natural spending habits is more likely to deliver meaningful value.
2. Eligibility Requirements
If you're new to credit, it's worth looking at how easy a card is to get. Some FD-backed cards require minimal documentation and are designed for people who may not have an established credit history. For example, the Kotak811 Dream Different Credit Card does not require a CIBIL score or income proof. This makes it an accessible option for individuals looking to begin their credit journey.
3. Long-Term Utility
Consider whether the FD credit card will continue serving your needs even after you've established a good credit score. Features such as cashback and digital payment flexibility can contribute to long-term usefulness.
Conclusion
All three cards offer a practical way to begin building a credit history while retaining the security of a fixed deposit.
Ultimately, the best FD-based credit card is the one that matches your spending behaviour and financial objectives. If you're looking for a simple, transparent, and rewarding way to start your credit journey, the Kotak811 Dream Different Credit Card is certainly worth exploring further.
Frequently Asked Questions (FAQs)
1. What is an FD-backed credit card?
An FD-backed credit card is a secured credit card which the bank issues against a fixed deposit maintained within the bank. The deposit acts as collateral, which can make it easier for customers with limited or no credit history to obtain a credit card.
2. Who should consider an FD-backed credit card?
FD-backed credit cards can be suitable for first-time credit card users, students, young professionals, and individuals looking to build or improve their credit profile.
3. Can an FD-backed credit card help build a credit score?
Yes. However, like any other credit card, factors such as responsible usage, timely bill payments, and maintaining a healthy credit utilisation ratio are important here as well.
4. Do I continue earning interest on my fixed deposit after getting an FD-backed credit card?
In most cases, yes. For instance, with the Kotak811 DreamDifferent Credit Card, the linked fixed deposit continues to earn interest as per applicable terms and conditions while serving as collateral for the card.
Note to the Reader: This article is part of Hindustan Times' promotional consumer connect initiative and is independently created by the brand. Hindustan Times assumes no editorial responsibility for the content.
The content may be for information and awareness purposes and does not constitute any financial advice.