Credit Cards taken on FD basis stay Active or get closed after FD Maturity ??

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I have an FD with Yes Bank (Yes I know it’s a Crap bank but their FD rate was 7.21%, So I opened an FD online for only like 1.5 years WITHOUT Auto-renewal)…I was trying to get the Yes First Exclusive card since like ages but they are not giving even though I was applying through a CC which has a Limit of 8.75 Lacs & more than 2 years old…

Now after creating this FD, they are asking me to get Yes First Preferred based on my FD with them…My Yes Bank RM (Relation with Money stuck_out_tongue) is telling me that the Yes First Preferred will continue to stay active after the closure of my FD with them..Is this the right info or she’s just trying to achieve her “target” ??

Yes Bank customer care is of no-use so I thought about asking here…Since they are not at all ready to give me the Yes Exclusive card even after me being fully eligible for it & an excellent Credit history of 10 years, I may have to settle for the Preferred but before I give my consent to her to proceed, I need to know the below 3 points clearly…

1) Yes First Preferred offered on FD stays active or gets closed after the FD is matured ?? Can I keep the card after the FD is matured/Closed or I will have to surrender the Card when my FD will close ? I’m asking this because I had an FD based card with ICICI long back & I had to surrender the card first to close my FD..It was my first ever Credit card…

2) After the FD is matured/closed, the Lien will be removed or I will have to close the card first to close the FD ?

3) If the Lien gets removed after the FD is matured, will the Secured card will be converted to an Unsecured card ?? And if it does, then any Limit Enhancement or card upgrade to Exclusive will be possible in the future since the lien will no longer be there ??

My RM seems not very sure about any of these & she even shocked when I told her that I check my own CIBIL regularly because she didn’t even know that we can do it easily…

Do other banks allow the FD based card to keep even after the FD is closed or my Yes bank RM is telling me a false story ??

Any helpful reply would be appreciated…Thank You…

18 Comments  |  
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No, obviously closed.

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_One_Miller_ wrote:

No, obviously closed.

This is written on the Bankbazaar site also so I’m lil’ confused…Not only my RM but the Credit card guy in the branch also confirmed the same to me on the phone that it will stay active…

“On the other hand, a secured credit card in good standing for a stipulated amount of time, let’s say 1-2 years, would prompt the bank or the issuer to delink your FD.

Link : https://www.bankbazaar.com/credit-card/credit-c...

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They want you to continue FD, so offering CC, surely they will tell different story around maturity date of FD and u will be forced to renew.

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caks2006407 wrote:

They want you to continue FD, so offering CC, surely they will tell different story around maturity date of FD and u will be forced to renew.

I have sent them an email (to their Grievance Redressal Team) & will take this in written that the CC will stay active after the FD maturity…I don’t trust them at all myself but the FD interest was high so I only booked an FD for 1.5 years as the FD amount is under 5 lacs & will be secured by DICGC

If they tell me on the phone that the CC will stay active, I still won’t proceed until they give me this in written…

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Sushrut.B wrote:

I have sent them an email (to their Grievance Redressal Team) & will take this in written that the CC will stay active after the FD maturity…I don’t trust them at all myself but the FD interest was high so I only booked an FD for 1.5 years as the FD amount is under 5 lacs & will be secured by DICGC

If they tell me on the phone that the CC will stay active, I still won’t proceed until they give me this in written…

They know the correct answer but pretend not and trying to confuse you.
Its their work and you are not the first customer taking CC over FD, they just misguide.
Update here the reply. I am pretty sure they will not give any guarantee of this sort.

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I am also having the same scenario. I had not a CC, so I searched for the best bank to Provide Good FD returns along with a CC. And I found Yes Bank. And When I applied for CC, I was specifically told that your CC will be closed if you Mature your FD.

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Other bank like HDFC do not allow to close FD until u surrender credit card

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No bank allows this.
Only axis bank does this but its not a guarantee. So they don’t tell it upfront. Axis bank may or maynot do it.

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Any sale offers / rewards for using or getting yes bank ltf cc ?

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caks2006407 wrote:

They know the correct answer but pretend not and trying to confuse you.
Its their work and you are not the first customer taking CC over FD, they just misguide.
Update here the reply. I am pretty sure they will not give any guarantee of this sort.

I wrote about this today where you replied…They were faking it like we all knew…I’m trying to close my FD now & it’s only like 4 months & as per their rules, If I close my FD within 181 days, there will be no charges but they are showing less amount than my FD deposit amount when I am trying to do a premature withdrawal…is this normal ??

Anyone of you had withdrawn an FD before it’s maturity ?? Do you get the full amount or they deduct something from there ??

Actually I never had to close an FD before it’s maturity but Yes Bank forced me to take this decision…I called bank lady that why the net FD payout amount is showing less than the deposit amount & it’s only 4 months of creating this & your site says that there will not be any charges if we close the FD within 6 months of creating it, this is what she said “Sorry Sir, I can’t say that for sure.I don’t deal in FDs”…Lol…

Few days back the same lady was asking me to get a CC based on my FD with a fake promise that the card will be delinked from FD after 1 year…

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mhkabra wrote:

I am also having the same scenario. I had not a CC, so I searched for the best bank to Provide Good FD returns along with a CC. And I found Yes Bank. And When I applied for CC, I was specifically told that your CC will be closed if you Mature your FD.

Currently only Yes Bank & Indusind (except those not so popular small finance banks) are providing 7% on FD & both the bank’s customer service is a big joke…

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Premature closure of FDs will generally fetch 1-1.5% penalty over the fd rate, say your fd interest was 6%, then u will get only 4.5-5% only… In any cases, you will always get the principal amount + some extra interest calculated based on this.

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Sushrut.B wrote:

I wrote about this today where you replied…They were faking it like we all knew…I’m trying to close my FD now & it’s only like 4 months & as per their rules, If I close my FD within 181 days, there will be no charges but they are showing less amount than my FD deposit amount when I am trying to do a premature withdrawal…is this normal ??

Anyone of you had withdrawn an FD before it’s maturity ?? Do you get the full amount or they deduct something from there ??

Actually I never had to close an FD before it’s maturity but Yes Bank forced me to take this decision…I called bank lady that why the net FD payout amount is showing less than the deposit amount & it’s only 4 months of creating this & your site says that there will not be any charges if we close the FD within 6 months of creating it, this is what she said “Sorry Sir, I can’t say that for sure.I don’t deal in FDs”…Lol…

Few days back the same lady was asking me to get a CC based on my FD with a fake promise that the card will be delinked from FD after 1 year…

Never closed FD in YesBank, in other banks when closed prematurely calculation was as per T&C like FD rate was say 6%, penalty 1% so effectively 5% rate for premature closure and final amount was as expected.
Mention here when u did FD and tenure, let me see check

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caks2006407 wrote:

Never closed FD in YesBank, in other banks when closed prematurely calculation was as per T&C like FD rate was say 6%, penalty 1% so effectively 5% rate for premature closure and final amount was as expected.
Mention here when u did FD and tenure, let me see check

There is no penalty in Yes Bank if withdrawn before 181 days… After 181 days, it’s 0.50% which is also written there when I was going to close the FD… I created in 4th May this year so only like 4 months… The maturity month is November 2021…

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BlueFlash wrote:

Premature closure of FDs will generally fetch 1-1.5% penalty over the fd rate, say your fd interest was 6%, then u will get only 4.5-5% only… In any cases, you will always get the principal amount + some extra interest calculated based on this.

In Yes Bank there is no penalty if withdrawn before 181 days which is clearly written on their official website… And after 181 days, the penalty is 0.50% as shown to me when I was going to close the FD…It’s 4 months since I created the FD so that is well under their 181 days…

I had selected Monthly payout option and the date is 4th of every month… If I withdraw the FD after getting the interest on this coming October 4th, would the withdrawable amount be decreased or will remain same?? Sorry this question may sound silly but I never had to close an FD before it’s maturity date so just a lil’ confused…

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Sushrut.B wrote:

In Yes Bank there is no penalty if withdrawn before 181 days which is clearly written on their official website… And after 181 days, the penalty is 0.50% as shown to me when I was going to close the FD…It’s 4 months since I created the FD so that is well under their 181 days…

I had selected Monthly payout option and the date is 4th of every month… If I withdraw the FD after getting the interest on this coming October 4th, would the withdrawable amount be decreased or will remain same?? Sorry this question may sound silly but I never had to close an FD before it’s maturity date so just a lil’ confused…

It will not remain same, it would be less. You are not calculating properly.
Penalty not there but ROI will not be same for these 4 months and it would be much less.
So recalculate interest assuming tenure as 5 months, deduct already rcvd interest to arrive at final amount.
ROI for 5 months as on 4-May-20 may be 5.5% I guess, confirm with customer care.
If the Customer prematurely withdraws the deposit, the interest rate prevailing at the date of deposit, for the period for which deposit was with the Bank shall be payable

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caks2006407 wrote:

It will not remain same, it would be less. You are not calculating properly.
Penalty not there but ROI will not be same for these 4 months and it would be much less.
So recalculate interest assuming tenure as 5 months, deduct already rcvd interest to arrive at final amount.
ROI for 5 months as on 4-May-20 may be 5.5% I guess, confirm with customer care.
If the Customer prematurely withdraws the deposit, the interest rate prevailing at the date of deposit, for the period for which deposit was with the Bank shall be payable

I’m not calculating anything…On the FD closure page, they are showing the final FD payment which will be transferred to my account & that amount is like only half of the monthly interest…

For example, if I am getting like 2000 monthly interest, the final FD payment is showing about 1000 less than the entire deposit amount which is not bad at all I think because I already got the interest for 4 months now (June,July, August & Sept)…I had chosen Monthly Payout & the rate is 7.21%…It was not a reinvest FD…

This is written on the FD closure page, I just logged on & copied this text from there “For all new FDs booked starting 05th July’19, premature withdrawal(partial or full) after 181 days shall attract a penalty of 0.50 %.”

So, even if I break my FD now, I will not lose anything because they are only deducting like half of one month’s interest & I already got the interest for 4 months now…

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I’m not sure if I should wait till the maturity & then close the FD & the account or do it now…Because if I close the FD, I will have to maintain 10k AMB…On minimum 50k FD, there’s no AMB requirement so since I have a little high-value FD, I am not having to keep anything in the savings account & it’s currently a zero balance account until my FD matures…Plus the interest rate is also the highest we can get i.e 7.21%…If I have to close the account, I will have to go to branch which is far away from my home & there are lockdowns running here in like 2-3 days in every week…And my health is also not well since last couple of years so zero immunity…

I think I will block all the executives & RM’s numbers for now who call me for CCs & will not apply for their CC again because everytime they will say that, they have approval but then it gets rejected which hampers the CIBIL to an extent…I’m better off just enjoying the high monthly interests & after my FD maturity date, I will close my account…Every month when the monthly interest comes, I shift that all to my IDFC account keeping 0 balance in Yes Bank…And I’m not interested in using their debit card or their other banking services…

Debit card I had chosen was also a basic Titanium card with 149+GST annual charges (because I mostly use credit cards) so I can wait till the maturity…It’s just that they won’t give me CC for some unknown reason..I thought by creating an account & making an FD, I will get pre-approved offers from the bank for the CC but my bad…Seems like there is no such thing called pre-approved CC in the Yes Bank…I didn’t even get the lowest-end Yes Prosperity CC offers till now lol…

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