Post Office Credit Card Against FD

What is a Post Office Credit Card Against FD?

A Post Office Credit Card Against FD is a secured credit card, offered to investors who open a time deposit with the post office. The facility does not require income proof or an existing credit history, making it accessible to students, homemakers, and first-time credit users. The deposit continues to earn returns at prevailing post office FD interest rates ranging from 6.90% to 7.50% per annum, while the card can be used for everyday transactions under standard terms.

Post Office Credit Card Against FD Features

Post Office Credit Card Against FD is offered with simple eligibility conditions and minimal documentation. The key features of this facility are:

• Credit Score Building: Using the card responsibly and paying dues on time helps customers establish or improve their credit history.
• Flexible Credit Limit: The credit limit is a percentage of the FD value. Customers can enjoy a higher limit by topping up or increasing the FD.
• No Income Proof Needed: The card is issued against the FD, so customers can apply without showing salary slips or income documents.
• Simple Documentation: Getting a post office credit card against FD does not involve lengthy documentation. Customers only need to provide basic KYC details along with the FD receipt. 

Pros and Cons of Post Office Credit Card Against FD

A post office credit card on FD has unique advantages and certain restrictions. The table below gives a quick comparison of the benefits and drawbacks:

Application Process for Post Office Credit Card Against FD

Applicants can apply for a post office credit card online or offline at an FD, depending on their convenience.

Online Application Process

Applying online for an Axis Bank Special FD Scheme can be done in a few easy, paperless steps as outlined below:

• Visit Website: Go to the official India Post or IPPB website and open the section for credit cards against FD.
• Choose Card Type: Select the FD-linked credit card option and proceed with the application.
• Open or Link FD: Create a new fixed deposit or link an existing FD to the application.
• Fill Out Form: Provide accurate personal information and FD details in the online application form.
• Upload Documents: Submit scanned copies of required documents, including PAN, valid address proof, and a recent photograph.
• Approval Process: After the FD and KYC documents are verified, the application is approved, and the credit card is dispatched to the applicant’s address.

Offline Application Process

The offline method suits those who prefer branch-level support and personal assistance.

• Visit a Branch: Go to the nearest Post Office or IPPB branch and request the application form for FD-backed credit cards.
• Place FD: Open the required fixed deposit at the branch if it has not already been created.
• Complete Form: Fill in the application form carefully with your personal and FD details.
• Submit Documents: Attach photocopies of PAN, valid address proof, a passport-size photograph, and the FD receipt.
• Branch Verification: The staff will check the submitted documents and forward the application for processing.
• Receive the Card: Once the application is approved, the credit card is issued and delivered within a few working days.

Closure Process for Post Office Credit Card Against FD

Certain formalities must be followed to close a post office credit card on FD. Below are the key steps in the closure process:

• Clear Outstanding Balance: All pending dues on the credit card must be settled before initiating closure.
• Submit Closure Request: The request can be submitted at the nearest branch through customer care or digital banking channels.
• Lien Removal on FD: After the dues are cleared, the lien marked on the fixed deposit is released.
• Adjustment Against FD: If any dues remain unpaid, the bank may recover the outstanding amount from the linked FD.

Who Should Consider a Post Office Credit Card Against FD?

A post office credit card on FD can be useful for different types of customers. Below are the groups who may find this facility beneficial:

• Customers without Income Proof: Students and homemakers can access credit facilities without income proof.
• First-Time Credit Users: An FD-backed credit card allows customers to begin their credit journey. It helps in gradually building a strong credit score.
• Customers Seeking Easy Approval: The process is quick and requires only basic KYC documents.
• Conservative Savers: They can continue earning interest on fixed deposits while enjoying credit card facilities.

Key Takeaways

A post office credit card against FD gives customers access to credit while the fixed deposit earns FD interest rates between 6.90% and 7.50% per annum. Since there is no need for income proof or an existing credit score, the facility is suitable for students, homemakers, first-time users, and depositors. With timely repayments, it also helps in building a credit record. The Post Office Credit Card against FD can benefit investors who want to use credit without affecting the returns from their FD.