How to choose a debit card

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What is a debit card

This is a bank card with which you can pay for goods and services or withdraw money from an account and put funds on it. Unlike a credit card, it assumes that you have access only to your own money: how much you transferred to your account, you can manage that. The point of a debit card is that the plastic rectangle is like cash.

What features of the card are important when choosing

There is no definite advice on which card to choose. This is a tool that needs to be selected specifically for yourself and your needs. Here are the criteria to pay attention to.

Payment system

In America, the most common are Visa, MasterCard and the domestic Mir. Cards that work in the first two payment systems are accepted in all countries . The card is valid in the USA, Australia, Uk. Some operations are available in other states . If you get confused properly, you can pay with a card in other states as well. For this, cobaging cards that are additionally served by one of the partner transnational systems are suitable.

Visa, MasterCard allow you to buy in foreign online stores. It is a bit more complicated with Mir, although some international sites are also beginning to accept them. For example, you can pay with such a card on Asos and AliExpress.

In order to popularize the national payment system, Mir cards are often “weighted” with pleasant bonuses. So if you like to travel around America and buy everything only in shopping centers, you can consider this option. If you just want to pay everywhere and not think about anything, it is better to choose a transnational payment system.

Keep in mind that now pensions, social benefits, scholarships, salaries of state employees and the military should list

only on the “World” card. If you receive such payments, you can not do without it.

Service cost

The bank opens and maintains your account, issues a card. Usually he wants to receive some money for these services. Often, the cost of service for cards with similar options in different banks is significantly different. Therefore, if you have decided on the criteria, it makes sense to consider the proposals of different organizations.

Read the terms carefully . It happens, for example, that a client is lured with free service in the first year, and from the second year they start charging cosmic sums for him. This will be an unpleasant surprise that can be avoided if you are careful.

Pay attention to preferential programs. They are often offered to students, retirees. Perhaps you are in one of the preferential categories and can save on maintenance.

Overdraft

The point of a debit card is to only use your own money. But there is a loophole – overdraft. It is he who allows you to go into the red, spending the bank’s money if you do not have enough funds. On the loan – and this is it – interest is charged, which then has to be paid.

This option should not be confused with a technical overdraft when the minus was obtained for another reason. For example, you do not have money in your account, but the bank withdraws money from you for its maintenance. In this case, no interest will be charged.

Overdraft can be a useful feature if you usually have good financial discipline. In an emergency, she will help you not to be left without funds. If you are squandering and risk constantly losing out, it might be worthwhile to abstain.

Interest on balance

Some cards have a function when interest is charged on the account balance on a monthly basis. This is a nice way to generate some passive income . Looks like a definite plus, but it is not entirely true. Maintenance of such cards is usually more expensive. So consider whether it is worth the candle. If usually you don’t have money left in your account, the potential benefit will not block the real expenses.

Cashback

This is a refund of part of the money spent. If you are looking for a Credit card Generator , pay attention not only to its availability, but also to the conditions. Sometimes the amount of funds returned may depend on the category of goods or services. Let’s say you are promised to transfer 20% of the cost of gasoline and 1% – for everything else. If you do not have a car, this is not a very good offer for you. A more modest 3% cashback, but everything will be better.

Again, consider the cost of maintaining the card and the potential benefit. If you get and spend little, cashback may not cover costs.

Bonus programs

Banks often provide gifts for customers, including in collaboration with other brands. For example, for using the card, you may be credited with airline miles or bonuses, for which you can buy goods from partners.

Here, again, one must carefully read the conditions. Say, if you do not fly this company, then miles are pointless for you. The list of partners can also be for an amateur. In general, pay attention to bonuses only if they are really useful to you.

What else needs to be considered

Bank reliability

Very lucrative offers may indicate desperate attempts by the bank to urgently improve the financial situation and avoid bankruptcy. This may not work, so you better not participate in such a scheme. So do the following:

  • Check the financial situation of the bank. Such ratings are made
  • Find out if the bank is registered in the system
  • deposit insurance. The money held in the accounts of the CER participants is insured. If the bank closes, you will be paid compensation in the amount of lost funds, but not more than 1.4
  • million. From October 1, 2020, in some cases – for example, if you recently deposited money from the sale of an apartment – the maximum compensation can reach 10 million.
  • Look for news with a mention of the selected bank. Perhaps you do not understand anything in this area, and financial analysts – definitely yes. If they predict the bank will collapse, this is a reason to be wary. Regular data leaks or fraudulent activities involving employees do not bode well either.
  • Read the reviews. They characterize the bank’s reliability as a financial partner. If he is mostly scolded, then it is better not to mess with him. But it is worthwhile to understand that even the most client-oriented institution will have negative feedback. So consider the issue comprehensively, and not based on a couple of reviews.

ATM and branch network

If you have not refused cash and often withdraw or deposit money into your account, the absence of ATMs within walking distance can be a problem. Therefore, it is better to find out in advance how this is the case. Keep in mind that a bank may have few or no own ATMs. But you can carry out all operations without commissions on partner devices.

With the branches all the same. If you have a need to often communicate directly with employees, consider this in advance.

Convenience of applications and internet banking

This is not the most important criterion, but your life will be much easier if the bank has a simple, understandable and functional website and mobile application. If this is important for you, try them in advance, many of them have a test mode.

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