Best Credit Card against a fixed deposit SBI

POSTED BY vijay s ON January 31, 2013 5:59 pm COMMENTS (9)

Hello everyone,

I have an account in sbi and recently deposited 80k amount as FD for 5 years.. i wanna take credit card and with little searching i come to know CITI bank credit card is the best one through this forum older posts. but the problem is i dont have an account in any other bank except sbi so i decided to take sbi credit card first.

I heard taking CC against a fd has some profits. so I want your help in choosing a best SBI credit card. 

Thanks in Advance !!!

9 replies on this article “Best Credit Card against a fixed deposit SBI”

  1. Dear Vijay, your reply answered my question well. Before curing an illness, a Doctor need full disclosure of all the problems. correct or not?

    As you have pointed out it to me very clearly. Here is my prescription for you. 🙂

    If you do have a regular job & income, do have ID & Res. Proofs in place, please apply for a normal CC with your existing bank where you already have a relationship. Believe me based upon your past dealing with your existing bank, your bank ‘ll be happy to provide you a CC. Please do not use this CC for more than 20-25% of the limit on regular basis. In one of cases as in your example, you may go beyond the limit but make sure, you have the money at the end of billing cycle to pay in full.

    This is just the start from my side. 🙂

    By the way the interview link is already here in the forum also. I’m more interested to help you. From your own reply & admission that you read my interview, now a question for you –

    Are you ready for that 25-75 test? If you are unable to understand what’s this 25-75 test, please read again my interview.

    Thanks

    Ashal

  2. vijay s says:

    Bond Bhai thanks for your suggestion.

    Dear Ashal Jauhari recently i went through some emergency needs for which i borrowed some money from my friends and returned too in 5 days, bcoz i had less account balance at that time as i had deposited most of it in fd for tax saving purpose.
    even for doing some international transactions i need one…. for eg. i wanted to take an instance in amazon web services but payment possible only CC ..
    i may be telling very silly cases … plz correct me if am thinking in the wrong direction.

    btw thanks for your reply i read your recent interview in one other site (dont remember exactly)

    i just started my career so i wud be more happy if you could give some inputs on proper financial planning for a newbie like me ..please !!

  3. Bond Bhai says:

    There are a few advantages of having a credit card. Like –
    1. You can spend when you dont have money.
    2. You can avail Interest free EMIs (for a short duration – 3/6 Months)
    3. Get reward points and redeem for gifts (Now even debit cards have this)
    4. If there is an erroneous transaction, you can dispute it. You can do that for a Debit Card as well, but in CC you would not have lost your money from the bank instantly.
    5. You get a few offers like 5% cash back in Fuel, SuperMarkets etc (some CCs, not all)

    Well, thats for the advantages. But there are lots of disadvantages –
    1. Miss out a payment and if it gets reflected in Credit History(CIBIL) – Your future credit borrowing will be severly impacted
    2. Miss out a payment and you will be loaded with mountain high interest rates on the balance amount.

    If you are type who keeps track of your spending, disciplined and pay off the “balance” in FULL every month. Then, buy a credit card. If not, Please don’t go for one. You are better off with a debit card. Considering the disadvantages, my personal opinion is to stay away from CCs.
    Also, Credit cards are like a drugs 🙂 You get addicted to it easily! You will have one now, later there will be lots of calls for you to take credit cards from different Institutions. You will be tempted and the soon you will realize you have 5-10 cards and you can’t keep track of all of them and then you end up with a huge debt.

    P.S: The last part is what i have seen around my friends circle (incl Me). As soon as we got jobs we started “collecting” credit cards becos it being offered without realizing the impact.

  4. Dear Vijay, why do you want to avail a credit card at all? That’s my first question to you.

    Thanks

    Ashal

  5. vijay s says:

    thanks for the quick reply is that 20,000 rs (typo) ?

    and please share info regarding credit card with no annual fee.

    1. Sorry. Yes it is 20,000 per year.

      You could search with citibank for cards with no fee. Even if you cant get any (getting difficult these days) after some time you can ask them to waive the fee. My wife did this with her citibank card.

      In most cases if you use the card heavily (paying off in full each time) the fee will waived each year.

      Search for ‘credit card no annual fee’. Many websites offer you lists

  6. I can see no advantage whatsoever linking a FD and a credit card. If one is not in a position to pay the full amt due before the due date every time the card is used then one should never get a credit card. Credit card debt is financial suicide.

    Linking a FD with card unnecessarily ties the money with the card. The bank will liquidate the FD if you default on payment. It is an unnecessary marriage.

    Get a card with no annual fee. Reward points are secondary. If you are going to pay in full then interest rates are irrelevant

    If you want a SBI card get it from your branch directly. All of them have annual fees. Its down to choosing the credit limit suitable for you.

    1. vijay s says:

      thanks for your suggestion..

      1. Are there any credit cards with no annual fee ? and
      2. sbi is offering many credit cards like gold, platinum etc which among them is the best ?
      for my usage of 15k -ish per month .

      please reply..!! i have very min knowledge on credit cards .. i am sry if i had asked anything in wrong

      1. I had used a SBI Silver card which I think should be enough for your needs. I think all their cards have annual fee. For silver card if you spend 20,00 each year then there is no fee but you need to follow this up.

        I returned my card sometime and don’t have any cards now. While I used it I was happy with the silver card.

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