5 benefits of using a savings account with a debit card

5 benefits of using a savings account with a debit card 1
Finance

Should you opt for a savings account that comes with a debit card? In a day and age where online transfers are more popular than ever before, you might wonder if you really require a debit card. Read on to know if a savings account with debit card is beneficial for you.

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What is a savings account, and what are its features?

A savings account is a popular category of bank accounts that helps you deposit your money and earn interest at a nominal interest rate. You can choose from several categories of savings accounts offered by banks such as zero balance savings accounts, high-yield savings accounts, and savings accounts designated for women, minors, and senior citizens. Deposits up to ₹5,00,000 in a savings account are insured by the DICGC (deposit insurance and credit guarantee corporation). You can also link an FD to a savings account and transfer extra savings to the FD through the ‘auto-sweep’ option. Some savings accounts have a ‘minimum balance’ requirement, i.e., they require customers to maintain a minimum balance in their account.

What are the benefits of using a savings account with a debit card?

There are several advantages to choosing an online savings account with debit card:

  • Debit cards are accepted internationally: A key advantage of choosing a savings account with debit card is the international acceptability of debit cards. Most debit cards are supported by international card networks like Visa and Mastercard. All that you need to do to start using your debit card abroad is to approach your bank to enable its international usage.
  • They offer high-level security to customers: Debit cards are extremely secure. They come with a PIN that secures all the transactions made by the customer. In the event of an unauthorised transaction, the customer immediately receives a notification on their phone.
  • Debit cards are extremely convenient to use: You can easily make ATM withdrawals with a debit card. Banks are now also offering contactless debit cards that can help you make convenient payments at stores.
  • Customers can use them as alternatives for cash: In the age of fast UPI (unified payments interface) transfers, debit cards that are linked to your bank account(s) can also act as alternatives for cash. You can use a bank’s mobile banking app to make any payment online in a few seconds.
  • They help customers transfer funds instantly: Debit cards can help customers transact by swiping their cards at POS machines or by making online payments. Both these modes of transfer are extremely fast and convenient.

 

  • Debit cards help customers withdraw cash whenever needed: Here is the stepwise procedure to withdraw cash using one’s debit card:
  • Visit a nearby ATM (automated teller machine).
  • Insert your debit card in the allotted debit card slot.
  • Select your preferred language.
  • Enter the 4-digit PIN.
  • Select the transaction type.
  • Enter the amount that you wish to withdraw.
  • Collect your cash.

A savings account with a debit card helps you avail all the benefits of savings accounts and debit cards. You can take advantage of the universal acceptability and convenience of debit cards by opting for these accounts.