Advantages of Having a Debit Card
There are many reasons why having a debit card can be better than having cash or a credit card
They are easy and convenient while being safe as well. There are many benefits that debit cards have over traditional credit cards. This article will list the most popular ones and why many places are now relying on debit cards as opposed to having a credit line.
Listed below are 5 benefits of credit cards to debit cards:
Reduced Risk of Getting in to Debt
When you have a debit card, you only spend money you already have saved in the bank as opposed to money loaned to you from a credit line. Therefore, there is a reduced risk of going into debt.
No Interest With a Debit Card
When a bank loans you money through credit cards, interest is added. When you have a debit card however there is no borrowing involved, meaning no interest to pay.
Lower Fees
Annual fees are associated with a credit card and there are no fees for the most part with a debit card. Some may however require a maintenance fee monthly on checking accounts. In most cases, banks are willing to waive the fee if you maintain a certain balance on a monthly basis.
Quicker Access to Cash
Cash advances can be withdrawn from an ATM but there may be fees as well as interest instantly. If you are somewhere that only takes cash, it is easier to just have a debit card to avoid these extra fees. Debit cards are the more affordable option. Money can be withdrawn from an ATM and there may be a small fee added. These fees are far more less than those you would pay with a credit card.
Bill Payment Eliminated
With a debit card, you get monthly statements of what you have spent but there are no payments required. With a credit card on the other hand, you receive monthly statements that do require you to pay a balance or a portion of the balance. You don’t need to look for fees or any other types of charges added to your statement.
Overall, having a debit card is the easier way to go between the two. There are fees that are eliminated and it prevents you from getting into debt as you would if you had a credit card. Money you spend is pulled from your account directly. There are many more benefits, and you should choose wisely.
Related posts:
- Difference between Debit Card and Credit Card
- How to get a Debit Card
- Best debit card Australia
- Virtual debit card
- Cheapest Debit Card
- Maestro Debit Card
- Free Prepaid Debit Card
Top High Interest Savings Accounts
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| Savings Account | Account Details | Maximum Variable Rate p.a. | Standard Variable Rate p.a. | Bonus Interest p.a. | Fees | Min Balance/Min Deposit | |
|---|---|---|---|---|---|---|---|
 UBank USaver | High ongoing rate of 5.41% p.a. Deposit $200 monthly to receive a bonus 0.60% p.a, taking this up to 6.01% p.a. Open online. | 6.01% | 5.41% | 0.60% | $0 | $0 / $0 |
 
|
 Virgin Saver Account | High introductory rate for 4 months to grow savings faster. | 5.85% | 4.65% | 1.20% | $0 | $0 / $0 |
|
 ANZ Online Saver | No min balance and earn up to 6.00% p.a. until 30 June 2012. Online exclusive offer. Apply online by 29 February 2012. | 6.00% | 4.25% | 1.75% | $0 | $0 / $0 |
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