In today’s fast-paced world, managing liquidity without sacrificing financial security is crucial. ICICI Bank has introduced an innovative solution that combines the safety of a Fixed Deposit (FD) with the flexibility of a credit card. With the ICICI FD Credit Card, customers can enjoy the benefits of an FD while accessing instant credit. In this guide, we’ll break down everything you need to know about the ICICI FD Credit Card, its features, benefits, and how to apply.
Table of Contents
What is the ICICI FD Credit Card?
The ICICI FD Credit Card is a unique offering that allows customers to avail a credit card against their Fixed Deposit (FD). The FD acts as collateral, and the credit card limit is typically 90% of the deposited amount. This product is ideal for individuals looking for liquidity while still enjoying the safety of an FD.
Features of the ICICI FD Credit Card
The FD Credit Card offers several attractive features that make it a popular option for customers:
90% Credit Limit on FD
One of the most exciting features of the ICICI FD Credit Card is that it allows users to have a credit limit up to 90% of their FD amount. For instance, if you deposit ₹50,000 in an FD, you can get a credit limit of ₹45,000 on your card.
Instant Credit Card Issuance
ICICI Bank provides instant credit card issuance against the FD, which means you won’t have to wait long to access your credit once your FD is set up.
Types of Credit Cards Available with ICICI FD
ICICI Bank offers two types of credit cards when you open an FD account.
Instant Platinum Credit Card
This is a free card issued against your Fixed Deposit, offering basic rewards and features. It’s an excellent option for those who need a quick credit facility.
ICICI Coral Credit Card
For those seeking extra rewards, the ICICI Coral Credit Card is an upgrade. It provides additional benefits like cashback, discounts, and more, making it ideal for frequent shoppers.
Eligibility Criteria for ICICI FD Credit Card
To be eligible for the ICICI FD Credit Card, the following conditions must be met:
- The FD must be of a minimum value of ₹50,000.
- The FD should be held in auto-renewal mode.
- The FD can be opened as either a Cumulative FD or a Traditional FD.
- The card is available to resident individuals only (no joint accounts).
Information in Table format
| Feature | Details | Real-Life Example |
|---|---|---|
| What is the ICICI FD Credit Card? | A credit card issued against a Fixed Deposit (FD), with the FD acting as collateral. The credit limit is typically 90% of the FD amount. | A customer deposits ₹50,000 in an FD and receives a credit limit of ₹45,000 on their ICICI FD Credit Card. |
| 90% Credit Limit on FD | Allows a credit limit up to 90% of the FD amount. | If you have an FD of ₹1,00,000, you can get a credit limit of ₹90,000. |
| Instant Credit Card Issuance | The credit card is issued instantly once the FD is set up, providing immediate access to credit. | After opening an FD of ₹75,000, the customer receives their ICICI FD Credit Card instantly with a limit of ₹67,500. |
| Types of Credit Cards Available | ICICI offers two options: Instant Platinum Credit Card (basic) and ICICI Coral Credit Card (with rewards and discounts). | A frequent shopper opts for the ICICI Coral Credit Card to enjoy extra cashback on purchases and dining discounts. |
| Eligibility Criteria | – Minimum FD of ₹50,000 – FD must be in auto-renewal mode – Available for resident individuals only – FD can be Cumulative or Traditional | A first-time credit card applicant opens a Cumulative FD of ₹60,000 and receives an ICICI FD Credit Card with ease, as the FD meets the eligibility criteria. |
| How to Apply: Online via iMobile App | Open an FD and apply for the FD Credit Card through ICICI Bank’s iMobile app in a few simple steps. | A tech-savvy customer applies for the FD Credit Card online, sets up an FD of ₹1,00,000 through the iMobile app, and receives their credit card within minutes. |
| How to Apply: ICICI Bank Branch | Visit any ICICI Bank branch to open an FD and apply for the FD Credit Card in person. | A customer visits their local ICICI branch, deposits ₹50,000 in an FD, and immediately receives their credit card with a ₹45,000 limit. |
| FD Requirements | Minimum deposit: ₹50,000 FD must be for at least 180 days (6 months) FD acts as security for the credit card. | A customer opens an FD of ₹70,000 for a 1-year tenure and uses it to secure an FD Credit Card with a ₹63,000 limit. |
| Interest Rates on ICICI FD | The interest rate is the same as for a standard FD, and it varies based on the tenure of the deposit. | A customer earns a 6% annual interest rate on their ₹1,00,000 FD while enjoying a ₹90,000 credit limit on their ICICI FD Credit Card. |
| Taxation on FD Interest Earnings | Interest earned is subject to Tax Deducted at Source (TDS), as per applicable tax laws. | A customer earns ₹3,000 in interest on their FD, but TDS is deducted, reducing the amount credited to their account. |
| Building Credit History | The FD Credit Card is an excellent tool for new or low-credit individuals to build or improve their credit history. | A first-time credit card user responsibly manages their ICICI FD Credit Card, building a positive credit history that improves their credit score over time. |
| Safe Investment with Liquidity | Combines the safety of an FD with the liquidity of a credit card, allowing access to funds in case of emergencies. | A customer deposits ₹2,00,000 in an FD and gets a credit limit of ₹1,80,000, ensuring both investment safety and access to credit when needed. |
| Cumulative FD vs. Traditional FD | Cumulative FD: Interest is reinvested and paid at maturity. Traditional FD: Interest is paid periodically. | A customer chooses a Traditional FD, receiving quarterly interest payments while using the ICICI FD Credit Card for emergency expenses. |
| Auto-Renewal of FD | The FD linked to the FD Credit Card must be set to auto-renewal to keep the credit card active after maturity. | A customer sets their FD of ₹1,00,000 to auto-renew annually, ensuring their credit card remains valid without reapplying. |
| Best for First-Time Credit Card Users | Since the card is backed by an FD, it’s easier for first-time users to get approval and start building a solid credit history. | A college graduate opens an FD and easily gets their first ICICI FD Credit Card, using it to build a positive credit record. |
| ICICI Coral Credit Card vs. Platinum Card | Coral Credit Card: Extra rewards like cashback and discounts. Platinum Credit Card: Basic card with no additional fees. | A frequent traveler opts for the Coral Credit Card to get dining and travel discounts, while another customer chooses the Platinum card for basic, fee-free credit access. |
| Security and Liquidity | Provides a balanced approach, ensuring both the safety of a Fixed Deposit and the flexibility of a credit card for emergencies or planned expenses. | A working professional deposits ₹1,50,000 in an FD, knowing their funds are safe while still having access to ₹1,35,000 in credit for unforeseen expenses. |
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How to Apply for ICICI FD Credit Card
Applying for the ICICI FD Credit Card is simple and can be done through two methods:
Online via iMobile App
Log in to ICICI Bank’s iMobile app, where you can open an FD and apply for the corresponding FD Credit Card in just a few clicks.
ICICI Bank Branch
Alternatively, you can visit any ICICI Bank branch and speak to a representative to set up your FD and get your credit card on the spot.
FD Requirements for ICICI FD Credit Card
The FD requirements are straightforward:
- Minimum Deposit Amount: ₹50,000
- Tenure: The FD must be for a minimum of 180 days (6 months).
Your FD acts as the security against which the credit card is issued.
Interest Rates on ICICI FD
The interest rate on the FD linked to the FD Credit Card is the same as that of a standard FD. ICICI Bank offers competitive rates based on the tenure of the deposit. Interest is calculated on the FD balance and credited as per the selected payout option.
Taxation on FD Interest Earnings
Interest earned on your FD is subject to Tax Deducted at Source (TDS). The applicable tax laws will determine the exact amount deducted. Make sure you account for this while calculating your returns.
Benefits of ICICI FD Credit Card
The FD Credit Card offers several unique benefits:
Building Credit History
If you’re new to credit or looking to improve your credit score, the ICICI FD Credit Card is a great tool. Since the card is backed by an FD, it’s easier to manage your credit and build a healthy credit history.
Safe Investment with Liquidity
With the FD Card, you get the best of both worlds: the safety of a Fixed Deposit and the liquidity of a credit card. It’s an excellent option for those who want to ensure their money grows while still having access to funds in emergencies.
Difference Between a Traditional FD and FD Card
There are two types of FDs available when opting for an FD Credit Card:
Cumulative FD
In this option, the interest earned on the FD is reinvested, and the total amount is paid out at the time of maturity.
Traditional FD
With a Traditional FD, the interest is paid out periodically (monthly, quarterly, or annually) based on your preference. You can use this interest as supplementary income while still maintaining your credit card.
Auto-Renewal of FD for ICICI FD Credit Card
The FD opened for the FD Credit Card must be set to auto-renewal mode. This ensures that the credit card facility remains active without the need for reapplying after the FD matures.
ICICI FD Credit Card: Best for First-Time Credit Card Users
This card is an ideal choice for first-time credit card users. Since the card is backed by an FD, the approval process is smoother, and it’s a great way to start building a solid credit history.
ICICI Coral Credit Card vs. Platinum Credit Card
ICICI Coral Credit Card
- Additional rewards and cashback on transactions.
- Discounts on dining, movies, and travel.
Instant Platinum Credit Card
- Basic credit card with no additional fees.
- Suitable for individuals looking for simple, quick access to credit.
Security and Liquidity: A Balanced Financial Approach
The ICICI FD Credit Card strikes the perfect balance between financial security and liquidity. It allows you to maintain an FD, ensuring your money grows safely, while providing the flexibility to access credit when needed.
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Conclusion
The ICICI FD Credit Card is an innovative product that offers the safety of a Fixed Deposit along with the liquidity of a credit card. Whether you’re looking to build a credit history or want easy access to funds, this product is an excellent option. With two variants—Instant Platinum and Coral Credit Card—you can choose the one that best fits your needs. The eligibility criteria are simple, and you can apply online or at any ICICI Bank branch.
FAQs
What is the minimum deposit for an ICICI FD Credit Card?
The minimum deposit required is ₹50,000.
Can I apply for an FD Credit Card online?
Yes, you can apply via ICICI Bank’s Internet Banking or iMobile app.
How much credit limit can I get against my FD?
You can get a credit limit of up to 90% of your FD amount.
Is the interest rate on FD the same as a standard FD?
Yes, the interest rate on the FD linked to the FD Credit Card is the same as a standard FD.
How does the ICICI FD Credit Card help in building a credit history?
The ICICI FD Credit Card helps in building a credit history by allowing you to manage your credit usage responsibly, which reflects positively on your credit report.