For individuals who are building or repairing their credit history, or those who have limited access to traditional credit cards, the Yes Bank FD Credit Card offers a smart and reliable alternative. This secured credit card is backed by a fixed deposit, making it accessible even to those without a high credit score or existing credit history. In addition to offering flexibility and spending power, it allows users to earn interest on their deposit while using the credit card responsibly. Understanding how the Yes Bank FD Credit Card works, along with its benefits, features, and application process, is key to making an informed financial decision.
What Is a Yes Bank FD Credit Card?
Definition and Concept
The Yes Bank FD Credit Card is a secured credit card issued against a fixed deposit with Yes Bank. Unlike regular credit cards that are offered based on creditworthiness, this card is issued by leveraging the value of a fixed deposit (FD) placed with the bank. The credit limit on the card is typically a percentage of the FD amount, often up to 90%, depending on the bank’s policy and the customer’s profile.
This credit card is especially useful for individuals who are:
- New to credit and don’t have a credit history
- Trying to rebuild a poor credit score
- Ineligible for unsecured credit cards
How the FD Backing Works
FD as a Security
To avail of the Yes Bank FD Credit Card, a customer must first open a fixed deposit account with the bank. The FD acts as collateral or a security deposit, which the bank can liquidate in case of payment default. The amount of credit granted on the card is typically between 75% to 90% of the FD value. For example, a customer opening an FD of â¹50,000 may receive a credit limit of â¹40,000 to â¹45,000 on the card.
While the FD is held as collateral, it continues to earn interest at prevailing rates, just like any other standard fixed deposit. This means cardholders benefit from both earning interest and gaining access to credit.
Key Features of the Yes Bank FD Credit Card
Core Benefits
- Guaranteed Approval: Since the card is secured by a fixed deposit, most applications are approved without extensive credit checks.
- Interest Earning: Your FD continues to earn interest even while being used as collateral.
- No Income Proof Needed: Applicants typically don’t need to show income documentation.
- Rewards and Cashback: Some versions of Yes Bank FD Credit Cards come with reward points and offers on shopping, dining, and travel.
- Credit Score Improvement: Responsible usage can help build or improve your credit score over time.
Custom Credit Limit
The credit limit is based on the FD amount, allowing flexibility depending on how much you’re willing to invest. This gives the cardholder control over their financial exposure and helps avoid overspending.
Eligibility Criteria
Though the card is easier to obtain than traditional credit cards, there are still a few eligibility conditions:
- Minimum fixed deposit amount, typically â¹10,000 or more
- Applicant must be at least 18 years old
- Valid identity and address proof as per KYC norms
- Existing or new Yes Bank fixed deposit
Since it is a secured product, the bank does not require a high credit score or proof of income, making it accessible to a wider audience.
How to Apply for the Yes Bank FD Credit Card
Step-by-Step Application Process
- Visit a Yes Bank branch or access the official website
- Open a new fixed deposit account or use an existing FD
- Fill out the FD Credit Card application form
- Submit required documents for KYC verification
- Choose the desired FD tenure and amount
- Wait for the card to be approved and issued (usually within 710 business days)
Some applicants may also be able to apply through online banking if they are existing Yes Bank customers.
Charges and Fees
Like all credit cards, the Yes Bank FD Credit Card comes with certain charges. However, these are generally reasonable, and the benefits often outweigh the costs if the card is used wisely.
- Annual Fee: May be waived or minimal depending on the card variant
- Interest on Outstanding Balance: If dues are not cleared by the due date
- Late Payment Fee: Applies if minimum payment is missed
- Foreign Transaction Fee: Charged for international usage
It is advisable to check the detailed fee schedule with the bank before applying.
Benefits of a Secured Credit Card Over Unsecured Cards
Safer Credit Experience
For first-time credit users, a secured card offers a safer way to experience credit. Since spending is limited to a percentage of the FD, it reduces the risk of accumulating debt. Additionally, the backing of the FD provides peace of mind to both the cardholder and the bank.
Builds Credit History
Using the Yes Bank FD Credit Card responsibly by paying bills on time and maintaining a healthy credit utilization ratio helps build a strong credit history. This can lead to eligibility for higher-limit, unsecured cards in the future.
No Risk to Savings
The fixed deposit remains untouched unless there is a default. This means that your savings continue to earn interest and can be withdrawn after the lock-in period, provided the card has been managed well.
Tips for Responsible Usage
- Always pay the full outstanding balance on time
- Keep credit utilization below 30% of your credit limit
- Set up payment reminders to avoid late fees
- Review monthly statements carefully
- Use the card regularly but wisely to establish credit activity
Who Should Consider This Card?
The Yes Bank FD Credit Card is ideal for:
- Students and young professionals starting their credit journey
- Individuals with low or no credit score
- People who have faced credit rejections previously
- Freelancers or self-employed individuals with inconsistent income documentation
By using this card as a stepping stone, many users are able to transition to unsecured credit cards over time and unlock a broader range of financial products.
The Yes Bank FD Credit Card serves as a powerful tool for anyone looking to begin or rebuild their credit profile. With the dual advantage of secured lending and interest earnings, it provides more than just credit access it opens doors to better financial opportunities. Its simple eligibility, flexible credit limits, and wide usability make it a smart option for a variety of users. When used wisely, this card not only supports daily expenses but also builds a foundation for a strong and healthy credit history.