Secured Credit Card Deposit Calculator
Estimate how much cash could be tied up as security for a target credit limit. FCAC notes that secured-card limits are normally equal to or higher than the deposit, but issuer terms vary.
Model a secured-card deposit
This does not predict any issuer’s approval or deposit requirement. It models a deposit scenario you choose.
How secured cards work
The Financial Consumer Agency of Canada says a secured credit card requires a security deposit and that financial institutions normally set the credit limit at an amount equal to or higher than the deposit. Deposits can range from a few hundred to a few thousand dollars.
The deposit is collateral. It is not a prepaid balance that automatically pays your monthly statement. You still need to make the card payments required by the agreement.
Why model the opportunity cost?
If $2,000 is locked as security for two years, that money cannot simultaneously sit in a savings product or emergency fund. The calculator includes an optional alternative annual return so you can see an illustrative value of that tradeoff. It ignores taxes and compounding complexity and should not be treated as an investment forecast.
Newcomers may have unsecured options first
FCAC identifies secured cards as one possible option for newcomers without Canadian credit history, but some major banks also publish newcomer credit-card pathways that do not require established Canadian credit history, subject to eligibility and approval. Compare those pathways before assuming a secured card is mandatory.
Official source
FCAC — choosing a credit card and secured cards →
Related CanadaStarter pages
Best Secured Credit Cards in Canada →
Can newcomers get a card without Canadian credit history? →
Credit Utilization Calculator →
General information only. Verify the issuer’s deposit, fee, reporting and refund terms before applying.