Credit Card backed by Fixed Deposit, good idea?

[Gaurish]

#Phan7om

I already use it but would like to get a cc

I'm having this CC linked FD from icici. there is no annual fees and yeah the interest on FD gets credited to my SB a/c. the conditions state that incase of default on payment of CC amount (dunno how much time is given), the bank will recover that amount from the fixed deposit.

just using it for some online transactions which is inevitable like steam, EA store, ebay.com(paypal) etc. but I mostly use the netbanking facility wherever it's available like ebay.in

_

what is the minimum FD amount? Minimum because I want the lowest possible CC limit. And since there is no annual fee, do bank have some other fee we need to watch out for?

how is your overall experiance with ICICI? wou

 

[varkey]

^ Min FD amount is 20k for ICICI and you get a card with a limit of 17k ie 85%. I was never charged any annual or any other fee. Overall its a good experience, never faced any major problems at all.

 

[DigitalDude]

^ Min FD amount is 20k for ICICI and you get a card with a limit of 17k ie 85%. I was never charged any annual or any other fee. Overall its a good experience, never faced any major problems at all.

ditto.

been using it for 1.5 yrs. only call I had to make was to ask them to come to my house for applying. never had any events in which I had to check how chargeback works, but I guess that should not be diff from any other Indian banks i.e. pita

_

 

[Gaurish]

Okay, thanks guys. Contacted ICICI Bank, this is what they have said to me:

Further to our telephonic conversation of April 11, 202, we inform you some of the feature of card against fixed deposit :

• ICICI Bank Fixed Deposit Instant Credit Cards is a credit card issued by ICICI Bank against a fixed deposit maintained with ICICI bank.
  
• To avail the Fixed Deposit Credit card, the Applicant shall be required to maintain a minimum fixed deposit of Rs. 20,000.00 with ICICI Bank. The said Fixed Deposit amount may be subject to change at the sole discretion of ICICI Bank from time to time.
  
• The credit limit on the Fixed Deposit Credit card shall be eighty five percent (85%) of the fixed deposit amount, subject to minimum credit limit of Rs. 17000.00 and maximum credit limit of Rs.5 lakhs.
  
• Upon issuance of the Fixed Deposit Credit Card, ICICI Bank shall mark a lien on the entire fixed deposit amount deposited by the Cardholders, including interest earned by the Cardholders, until the termination of the Fixed Deposit Credit Card or the fixed deposit, as the case may be.
  
• In the event that Applicant has an existing fixed deposit with ICICI Bank, the fixed deposit amount will be linked to the Applicant’s Card Account and the fixed deposit will be converted into an auto-renewal mode with immediate effect.
  
• The Cardholders shall not have the right to make any part withdrawals from the fixed deposit linked to the Card Account.
  
• The Applicant shall have the right to nominate a person for the FD opened by the Applicant
  
• In the event the Card holder wishes to withdraw/ terminate the fixed deposit amount or in case the Fixed Deposit Credit Card is cancelled by the Card holder/ ICICI Bank, or in case of termination of the fixed deposit upon the death of the Card holder, the Card holder/ nominee shall be entitled to the balance fixed deposit amount including the interest accrued, after deduction of any amounts due and payable by the Card holder to ICICI Bank including any charges, fees etc. due to ICICI Bank. Such balance will be credited to the base branch account in case the card holder does not have any account with ICICI Bank and will not earn any interest thereon. The Fixed Deposit Credit Card shall upon the death of the Card holder stand terminated.
  
• In case the Card holder fails to pay the amount outstanding on the Fixed Deposit Credit Card within 60 days from the due date or if the credit card outstanding including any fees and charges becomes more than 95% of the fixed deposit amount at any point in time, ICICI Bank shall have the right to liquidate the entire fixed deposit amount including the interest accrued and set off from the fixed deposit amount including interest accrued, the outstanding amount payable to ICICI Bank against the Fixed Deposit Credit Card and only the balance amount post this deduction shall be refunded to the Card holder. Such balance will be credited to the base branch account in case the card holder does not have any account with ICICI Bank and will not earn any interest thereon.
  

Does this mean we have to open a new SB account inorder to get interest on FD? If yes, then is there a need to maintain any minimum balance?

 

[mehrotra.akash]

I just think it means that you wont earn interest AFTER the credit card is cancelled (for customers the amount would be deposited into their savings account, so they would get more interest once they cancel their CC which you wont get)

The minimum balance for Savings accounts is 2k,5k,10k depending on location of the branch

 

[krishnandu]

Well the CC I'm having is issued based on FD of my parents. It's been more than a year and I'm using it smoothly. No problems at all.

Both my CC and FD is at SBI. Yes they charge 500/- as annual fee, which can be waived off if you spend a stipulated amount in a year or you can just charge them like "everyone is giving CC for free why should I pay you annual fees? In that case I'd get it from some other bank" and believe me this works.

And about security, I'd say there is really no need to worry if you don't plan to use it as a route to Loan. Just pay the amount in timely manner and you'll be fine.

If at any point you think, you cannot pay the amount at your billing period, you can always convert it to Flexipay (EMI Scheme). Though it'll charge you higher by 15%.

And payment can be stopped if you think it's a dispute and all, and you get a call from them everytime you spend some higher amount regarding the confirmation of transaction.

So in short, I'd say go for it.

But one warning : Never use CC as a route to loan, and you'll be fine.

EDIT : Ohh one more thing, I forgot to mention is, you need to keep your FD renewing everytime you plan to use the CC. Once you plan to withdraw the FD, you have to dismiss the CC then only you can withdraw it.

So as you can understand, if at any point of time in emergency, you want to withdraw it, you can't. As it'll take few days to complete the procedure of quiting the CC and then only you can withdraw your FD.