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A secured or fixed deposit credit card is an excellent way to start building your credit. With a credit card backed by a fixed deposit, you can earn rewards on your spending while gradually increasing or improving your credit score. The Magnet Credit Card is one such card that can be obtained against a low fixed deposit of ₹5,000. Offering lifetime free membership, the Magnet Credit Card is the best option for individuals with little or poor credit history.

With the Magnet Credit Card, you’d need to make a fixed deposit backed by SBM Bank, earning up to 7% interest per annum. Your credit limit will be set to 90% of the fixed deposit amount. With this card, you have the opportunity to enhance or establish your credit score, enabling you to access more favorable loan terms. Additionally, you will benefit from a substantial credit limit and competitive interest rates on your fixed deposit.

Magnet FD Backed Credit Card
(4.5/5)

Joining Fee

Nil

Renewal Fee

Nil

Best Suited For

Shopping |

Reward Type

N/A |

Welcome Benefits

5,000 ZET Coins Worth ₹500

Movie & Dining

N/A

Rewards Rate

N/A

Reward Redemption

N/A

Travel

N/A

Domestic Lounge Access

N/A

International Lounge Access

N/A

Golf

N/A

Insurance Benefits

N/A

Spend-Based Waiver

N/A

Rewards Redemption Fee

N/A

Rewards Redemption Fee

N/A

Foreign Currency Markup

2.49%

Interest Rates

2.50% Monthly (30% Annually)

Fuel Surcharge

1% Fuel Surcharge Waiver

Cash Advance Charges

2.5% or ₹300 Whichever is Higher

  • This is a secured credit card that can be availed against a fixed deposit.
  • The FD is made with SBM Bank.
  • A minimum FD of ₹5,000 is required for this card.
  • Cardholders shall get a credit limit of up to 90% of the fixed deposit amount.
  • There is a ₹499 charge for early closure of the fixed deposit.

Magnet Credit Card Features and Benefits

A secured credit card like Magnet Card provides an easy application process and benefits across the board. This card shall be most useful for those who are just beginning their credit journey. Here are some of the top benefits of Magnet Credit Card.

No Joining or Annual Charges

The Magnet Credit Card is a lifetime free offering, meaning there are no joining or annual charges. Such a card is extremely valuable and should be a must-have for everyone’s wallet, as there are no associated fees.

Welcome Benefit

Upon successfully applying for the Magnet Credit Card, you will receive 5,000 ZET Coins valued at ₹500. These coins can be used to purchase vouchers for popular brands such as Amazon, Flipkart, and Swiggy.

Low Forex Fee

This card charges a low Forex fee of 2.49%, which is quite low compared to other credit cards. Usually, credit cards carry a 3.5% charge on all international transactions.

Credit Card Against Minimum Deposit of ₹5,000

The Magnet Credit Card can be obtained against a minimum fixed deposit of ₹5,000 backed by SBM Bank. This fixed deposit will earn an interest rate of up to 7% per year, which is quite higher than what traditional banks offer. Opening a fixed deposit with SBM for the Magnet Credit Card is a completely secure process, as guaranteed by DICGC, a wholly-owned subsidiary of the Reserve Bank of India.

The maximum amount for a fixed deposit is ₹8.5 lakh.

Eligibility for Magnet Credit Card

One must fulfill the following criteria to be eligible for the Magnet Credit Card.

  • Must be an Indian Citizen.
  • Should possess an Aadhaar and PAN Card.
  • Must be above the age of 18.

How to Apply for the Magnet Credit Card?

The application process for the Magnet Credit Card is fairly simple and completely digital. This secured credit card can be easily applied for and approved. Please keep your PAN Card and Aadhaar-linked mobile number ready for a fast approval process.

  • Download the ZET mobile application.
  • Login with an OTP sent to your mobile number.
  • Fill in your particulars like name, e-mail, etc.
  • Select the Magnet Credit Card from the home screen.
  • Choose a Fixed Deposit plan with SBM Bank.
  • Check Eligibility.
  • Fill in a few basic details.
  • Verify Aadhaar.
  • Verify your bank account and complete the fixed deposit payment.
  • You shall then need to complete a Video KYC, after which an instant credit card will be offered.
  • Further, you can personalize your new Magnet Credit Card.

Conclusion

The Magnet Fixed Deposit Credit Card not only fulfills basic credit card needs, such as an interest-free period of 45 days but also offers a high interest of 7% on the fixed deposit. Although it is a lifetime free card without any annual or joining charges you still get a welcome benefit of 5,000 ZET Coins which can be redeemed for vouchers (worth ₹500). To get this card, you would need to make a fixed deposit of ₹5,000, which will be backed by SBM Bank and earn an interest of up to 7% per annum. The credit limit that will be offered will be 90% of the total amount of the fixed deposit.

This credit card would be a great way to build and improve your credit score. You just need to make payments with this credit card and pay the bill on time to increase your CIBIL Score. In addition to all the above-mentioned benefits, this card offers a low forex charge of 2.49%, allowing you to make easy international transactions without incurring high charges.

FAQs:

Yes, the Magnet Credit Card allows you to easily make contactless payments of up to ₹5,000. You don't need to enter the PIN for these types of transactions.
If you close your fixed deposit with SBM Bank before its maturity, a charge of Rs. 499 shall be levied. If you were getting an interest of 7%, it would effectively be reduced to 6%, as 1% shall be deducted as a penalty.
Late credit card bill payments carry an additional charge (penalty) and will also affect your credit score. It's best advised to pay all credit card bills on time. If the Magnet Credit Card bill is not paid for a period of more than 60 days, then the fixed deposit associated with the card will be liquidated, and the outstanding amount will be settled.
Yes, if you cancel the Magnet Credit Card within the first year of activation, you shall have to pay a cancellation charge of ₹499.

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