Hong Leong Bank Opens Application Of Credit Cards Secured With FD Pledges
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Hong Leong Bank (HLB) has launched a year-long campaign that allows selected customers to apply for secured credit cards from the bank by making a fixed deposit (FD) pledge. Secured credit cards are credit cards that are backed by a collateral, such as your FD or savings accounts.

From now until 31 December 2021, HLB’s campaign is applicable exclusively to anyone who are unable to provide the relevant supporting income documents that are typically needed for a credit card application. They can apply for their cards by placing an FD of between RM2,000 to RM50,000 with the bank, and then pledging these FDs as security for the credit limit assigned to their secured credit card.

hong leong bank

(Image: The Sun Daily)

According to HLB, the credit limit assigned to your card will be based on the amount of FD that you have pledged at a 1:1 ratio. In other words, if you pledge an FD of RM2,000, then the credit limit of your new card will also be set at RM2,000. Here’s the full list of credit cards that you can apply for through this campaign, and the minimum FD pledge amount that is required for each card:

Cards Minimum FD pledge amount required (RM)
Emirates World Elite 50,000
Emirates World 20,000
Emirates Platinum 12,000
The Store & Pacific Platinum 12,000
The Store & Pacific Gold 2,000
AirAsia Platinum 12,000
AirAsia Gold 2,000
GSC Platinum 12,000
GSC Gold 2,000
Sutera 12,000
Essential 2,000
WISE 2,000
I’M 2,000

Naturally, you won’t be allowed to withdraw, assign, or transfer the FD amount that has been pledged. You are, however, allowed to top up any additional sum in order to increase the credit limit of your credit card.

Note as well that the cardholder must be the sole owner of the FD; joint accounts are not eligible for this campaign. Other FD plans that also do not qualify include:

  • Flexi fixed deposit
  • Junior fixed deposit
  • Fixed deposits placed for Malaysia My Second Home Programme (MM2H)
  • Any Islamic fixed deposit
  • Any minor/trust fixed deposit account
  • Fixed deposits from another banking institutions
  • Fixed deposit/e-FD pledged as collateral for a banking facility

Other than that, there is no limit on the age of applicants interested in tapping into this campaign. HLB’s website also said that there is a high approval rate for the applications made. If you’re interested, you can make your applications both online via HLB’s website, or at a bank branch. Alternatively, head on over to HLB’s website to find out more about its secured credit card campaign.

menara hong leong

To clarify, pledging FDs to secure credit cards is actually quite a common practice – though it is not one that’s widely publicised. Many other banks provide a similar service, as it allows those without fixed incomes (freelance, retirees) as well as those without a credit history (fresh graduates) to apply for these products. Customers simply need to ask if the bank offers this option.

HLB also isn’t the first bank to market its secured credit card programme as a campaign. Affin Bank launched a programme for its Affin Duo credit cards awhile back, allowing fresh graduates to apply for the Affin Duo cards by placing a pledge amount. Unlike HLB’s campaign which requires an FD pledge, however, Affin Bank’s programme asks for its applicants to pledge a savings account instead.

(Source: Hong Leong Bank)

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3 months ago

How long must we keep our money in the FD account?

Pang Tun Yau
3 months ago
Reply to  Loke

For as long as you wish to own the card. If I’m not wrong, a bank may allow you to remove the FD pledge if and when you can meet the card’s eligibility requirements and approved accordingly (essentially requiring you to make a fresh application).

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