IDFC First Bank Unveils Hello Cashback Credit Card with Fixed Deposit Backing
In a strategic move to attract first-time and credit-constrained customers, IDFC First Bank has launched the Hello Cashback Credit Card, a secured RuPay credit card that is backed by a fixed deposit. This innovative offering aims to provide a low entry threshold and simplified access, with features designed to help users build credit history while earning rewards on their spending.
Key Features and Eligibility
The Hello Cashback Credit Card requires a minimum fixed deposit of Rs 10,000, with the credit limit set at 100% of the deposit amount. This structure allows customers to earn interest on their fixed deposit alongside cashback rewards, without the need for income proof or a credit score. The bank emphasizes that this approach helps individuals establish or improve their credit profile while maintaining returns on their savings.
Rewards and Cashback Structure
Rewards follow a tiered cashback system: for online spends, users earn 3% cashback on the first Rs 10,000 per statement cycle and 5% on amounts beyond that, capped at Rs 1,000 monthly. Additionally, a flat 1% cashback applies to UPI payments made through the bank's app, in-store swipes, and essential categories such as utilities, rent, education, insurance, jewellery, FASTag, government payments, and wallet loads. This brings the total monthly cashback cap to Rs 1,500.
Exclusions include fuel purchases, EMIs, ATM withdrawals, and UPI payments through non-bank apps. For select travel bookings via the bank's app, users can earn up to 6% cashback, including a 1% bonus, enhancing the value for digital-savvy consumers.
Flexibility and Additional Benefits
The card offers flexibility with instant credit limit increases by adding more to the fixed deposit. Users can also withdraw up to 100% of the deposit via ATMs, interest-free for 45 days, subject to a fee of Rs 199 plus GST. In terms of fees, the joining fee of Rs 1,000 is waived until March 31, 2026, while the annual fee of Rs 1,000 is waived for spends of Rs 2 lakh and halved for Rs 1 lakh spends.
Additional perks include Rs 2 lakh personal accident cover, Rs 25,000 purchase protection, and fuel surcharge waivers, making it a comprehensive package for everyday use.
Market Positioning and Strategy
Compared to rival deposit-backed credit cards that often offer limited rewards, IDFC First Bank is positioning the Hello Cashback Credit Card as a higher-cashback option tailored for digital-first users. By combining UPI-heavy spending capabilities with the security of a deposit-backed framework, the bank aims to tap into the growing demand for accessible credit solutions in India's evolving financial landscape.
