No Income, No Problem: Suryoday SFB Secured Credit Card for Savings

Suryoday Small Finance Bank has launched a secured credit card backed by fixed deposits (FDs), allowing customers to use their own savings as collateral to get a credit card. The product is designed for individuals who lack regular income proof, such as homemakers, retirees, or young professionals. Customers can put a minimum FD of ₹1,000 or ₹1,11,500 to get a RuPay credit card, with lifetime-free usage and 0.5% cashback on transactions. The FD earns industry-high interest of up to 8.40%.

Suryoday Small Finance Bank has introduced a novel secured credit card that uses fixed deposits (FDs) as collateral, catering to individuals who may lack regular income proof such as homemakers, retirees, or young professionals. This innovative product allows customers to leverage their own savings to obtain a RuPay credit card. The minimum fixed deposit required is ₹1,000 or ₹1,11,500, with lifetime-free usage and a 0.5% cashback on transactions. The FD earns an industry-high interest of up to 8.40% [1].

The secured credit card is designed to help individuals with limited or no credit history build or rebuild their credit score. By using their own savings as collateral, customers can access credit without the need for traditional income verification. This feature makes the card particularly appealing to those who may not qualify for unsecured credit cards due to their financial situation [1].

The card offers several benefits, including lifetime-free usage, which can help users avoid additional charges. Additionally, the 0.5% cashback on transactions provides a small financial incentive for using the card. The FD interest rate of up to 8.40% ensures that customers' savings are growing while they build their credit score. This combination of features makes the Suryoday Small Finance Bank secured credit card a compelling option for those looking to improve their financial standing [1].

While the card offers numerous advantages, it is essential to consider the potential drawbacks. The fixed deposit acts as collateral, which means that if the cardholder fails to make payments, the FD may be used to cover the outstanding balance. Additionally, the card's cashback and interest rates may not be as competitive as some unsecured credit card offers. However, for individuals with limited credit history or those looking to build credit, this card can be a valuable tool [1].

In conclusion, Suryoday Small Finance Bank's secured credit card backed by fixed deposits is a unique and accessible financial product. By leveraging their own savings as collateral, customers can build or rebuild their credit score while earning interest on their FD. While there are some potential drawbacks to consider, the card's features make it a viable option for individuals seeking to improve their financial situation.

References:
[1] https://www.bankrate.com/credit-cards/building-credit/best-secured-cards/