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FD full form and meaning: Fixed deposit

Full form: Fixed Deposit

A fixed deposit is a lump sum you place with a bank for a set tenure at a fixed interest rate, which is typically higher than a regular savings account. Withdrawing before the tenure ends usually triggers a penalty or reduced interest. FDs are central to secured credit cards: instead of relying on income proof or credit history, the issuer sets your credit limit as a percentage of your FD amount, commonly 90%, and your deposit keeps earning interest the entire time your card stays active.

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Fixed deposit (FD)
Frequently asked questions
Only if you default on your credit card bill. The issuer can then use your FD to recover the outstanding amount, which is why these cards are considered low-risk for the bank despite requiring no income proof.
No, most issuers require the FD to stay open for as long as the card is active, since it is what backs your credit limit. Closing the card first is usually required before the FD becomes free to withdraw.
Card reviews
SBI Card UNNATIBeginners and those with no credit history wanting to build CIBIL score safelyIDFC FIRST WOW Credit CardFirst credit card for anyone with no credit history, FD-secured with zero forexSBM ZET Credit CardFirst-time credit users or those with a low/no credit score wanting a genuine, no-income-proof path to building a 750+ credit history via an FD-backed card