Why Banks and Fintechs Are Betting Big on FD-Backed Credit Cards

Credit cards are often seen as a luxury reserved for people with strong credit scores — but that’s changing fast. Banks and fintechs are now actively promoting FD-backed credit cards as a way to bring more users into the financial mainstream. With these cards, you don’t need a high credit score to get approval. Instead, you open a fixed deposit that acts as security. The bank takes on less risk, while you get access to credit and the chance to build a stronger credit history. For customers, it’s a win-win. Your FD keeps earning interest while your card helps you make purchases, access rewards, and even convert expenses into EMIs. It’s a safe and smart way to step into the world of credit cards without the fear of rejection. Fintech companies are making the process even easier with instant digital approvals and seamless onboarding. This has made FD-tied cards especially appealing to young professionals and first-time users who want convenience along with financial discipline. At its core, this trend is about financial inclusion. FD-backed credit cards lower entry barriers, making it possible for millions of Indians to access credit responsibly and set the stage for a healthier financial future.