City Union Bank Credit Card Against FD

What is a City Union Bank Credit Card Against FD?

A City Union Bank credit card against FD is a secured card that uses your fixed deposit as collateral. This is a great option for those without income proof or a credit score, such as young professionals, as it allows them to get a card and build a credit history. The card functions like a regular credit card, but your FD remains secure and continues to earn interest at the applicable City Union Bank FD interest rate.

City Union Bank Credit Card Against FD Features

Here are some of the key features of the City Union Bank credit card against FD:

• Interest Charges: You only pay interest on unpaid dues. The rate can go up to 35.4% per year (2.95% per month).
• Interest-Free Period: This card offers a minimum interest-free period of 20 days, with interest charged only on unpaid balances after that.
• Add-on Cards Available: With a City Union Bank credit card against FD, you can request supplementary cards for your family members under the same primary account, making it easier to manage shared expenses.
• No Joining or Annual Fee: The City Union Bank credit card against FD has zero joining fees and no annual membership charges, making it a completely free-to-hold secured credit card.
• Reduce TDS: If you want to reduce TDS on your FD interest earnings, you can submit Form 15G or 15H to City Union Bank to minimise tax liability.

Application Process for City Union Bank Credit Card Against FD

To apply for a City Union Bank credit card against FD, follow these steps:

• Open a Fixed Deposit: Create a fixed deposit and request lien marking at any City Union Bank branch.
• Fill Out the Application Form: Get the secured card form from the bank and fill it out accurately.
• Submit Required Documents: Provide valid identity proof (like PAN or Aadhaar) and address proof. A confirmation of the FD lien will also be needed.
• Verification and Card Issuance: The bank verifies documents and the lien, then issues the card.

Pros and Cons of City Union Bank Credit Card Against FD

The following table outlines the benefits and drawbacks of the City Union Bank credit card against FD, helping you assess whether it aligns with your financial needs:

Closure Process for City Union Bank Credit Card Against FD

To close your City Union Bank credit card against FD, follow these steps:

1. Pay Outstanding Dues:

   Settle all dues on the credit card before initiating closure.

2. Submit Closure Request:

   Request closure by visiting the nearest CUB branch or contacting their customer care team.

3. FD Hold Removal:

   After verification, the bank will remove the lien on your fixed deposit within 7–10 working days.

4. Early Closure Rules:

   If the FD is prematurely closed, the outstanding credit card dues will be recovered from the deposit amount.

5. Penalty Clause:

   The bank may charge penalties and adjust the FD interest if dues remain unpaid at closure.

Who Should Consider City Union Bank Credit Cards Against FD?

The City Union Bank Credit Card Against FD is a great option for several groups, including:

• Individuals with No Credit History: It's perfect for first-time credit users like students, homemakers, or young professionals who need to build a credit profile.
• Those Without Income Proof: Since it's secured by your FD, you don't need to provide income documents to get a card.
• Credit Builders: It's a low-risk tool for anyone looking to improve or establish a good credit score without getting into unsecured debt.

Key Takeaways

The City Union Bank credit card against FD is a type of secured credit card with a lien marked on your fixed deposit, which serves as collateral. To apply, you must be at least 18 years old and hold a fixed deposit with the bank. The credit limit is set at 90% of your FD amount, and there's no requirement for proof of income or a previous credit history. Also, your fixed deposit continues to earn interest at the applicable FD interest rate, even while being held as security, ensuring your savings continue to grow during the card’s usage.