A debit card has become a necessity as it is a wise way to pay for your everyday spending and enjoy the benefits of cashless transactions. Using a debit card means you don’t have to worry about carrying enough cash every time in your pocket. Let’s look at some of the features of a debit card and its benefits.
Features of Debit Card
Linked to bank account
A debit card is linked to your bank account, so every time you make a transaction, the money is deducted from the account. To have a debit card, it is mandatory to have a bank account.
Eligibility
Anyone who has a bank account can have a debit card. However, some banks do not offer a debit card in case the account is jointly handled.
Maximum withdrawal amount
The withdrawal limit from debit cards varies and it could be anywhere between Rs. 10,000 to Rs. 2,00,000.
Benefits of Debit Card
No fee on premium account variants and a small fee on other account variants depending upon the type of account and the Debit Card.
While a credit card comes with the annual fee, foreign transaction charges, late payment charges etc. a debit card has a few or no fees attached. Some banks do charge a fee for using a debit card of another bank, but you can easily avoid this by planning in advance and using an in-network ATM.
Faster payments
If you use a cheque for transactions, there is a possibility it may not be cashed for days or weeks. Using a debit card means faster payments and better budgeting. You will be free from the worry of spending extra because you have a limited amount in your account and all the money is paid through debit card transactions and not cheque or by cash.
Better record management
All the transactions by debit card are reflected in your account statement. As a result, you know where all the money is going and keep a track of it. You can also get a detailed statement of monthly transactions made with the debit card.
No interest charges
The best reason to use a debit card in place of a credit card is the interest. Credit card companies charge high interest that can also fluctuate. If you don’t watch your credit card expenses, you might end up paying a lot of interest charges every month. Making payments with a debit card means avoiding interest charges and saving more.
More security
If you carry cash all the time, it will be gone in case the wallet is stolen. A debit card protects against theft as nobody can use it without knowing the PIN. Nowadays, debit cards come with a security chip that makes it even more difficult for hackers to know your credentials and steal money.
Final Words
A debit card comes with many benefits, which make it a must-have for anyone who holds a bank account. Some of the debit cards come with reward points as well. Whether you travel, shop or make any other online transaction, you get reward points for every purchase that can be redeemed in the form of cash or gift. Considering the many benefits of debit cards, it makes sense to use this form of plastic money for everyday transactions.