ICICI Credit Card on FD,

POSTED BY RICHARDS JOSEPH ON December 8, 2012 4:29 am COMMENTS (3)

The Credit card which ICICI Bank provide on FD .As far as I know they provide Credit card on FD with which they give interest as per FD interest and after using Credit card i will be getting around 1 month relaxation on remmiting the bill/statement.


So,How is ICICI Bank benifited from this service or is there any Hidden charges ,as in the website it says no annual  fee ,,and it seems absolutly free card issuing even the add on cards,

Please advice as am new to credit cards.

3 replies on this article “ICICI Credit Card on FD,”

  1. Credexpert says:

    Dear Mr.Joseph,

    ICICI Bank will not give interest but rather charge interest on the credit card. The relaxation period is the grace period offered by the bank to repay the outstanding amount. In case you default on your payments, then this grace period will not be applicable for future payments and the interest of 3.40% p.m will be charged. This is where the bank benefits. The limit of the credit card will depend in the amount of FD, higher the amount better the limit on the credit card.

    Many banks waive the annual maintenance fee only for the 1st year. Read the terms and conditions to understand any hidden charges.



    I want to have Credit Card as the Debit Card has its limit. So will this limit will get avoided ,If am taking ICICI CC with FD.

  3. You need to then understand the model of how banks make money out of credit cards . first its a game of large numbers

    1. Out of 100 people who use CC, 95 will be good customers and 5 will bad , so the charges company can recover from 5 people will be enough to service all 100 people

    2. The next way company makes money is when you swipe the card, when you swipe ,the company gets a part of the commission paid by the merchant !

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