Question : Credit cARD?
i just recently opened a bnk account. and i added money to my savings account. so that money that i put in there can i still use it with my card if i was to go to a store or something? or can only take money out from the atm? another ? i wanna ask what is the diff. b/w credit and debit? thnx for the help
- asked by xx__0.Brwneyedchicana.0__xx
All Answers:
Answer #1
Usually you dont get Debit cards for savingsaccounts. The reason is because of a Federal lawthat only lets you take money out of InterestBearing Accounts 6 times a month.I'm guessing, ifyou got a debit card - its a non-interest bearingchecking account. Credit means you sign for theitem, the bank pays the bill, then the bank getsthe money back from you, most banks its within 3days of the purchase. This is different from anactual credit card in which the lender pays thebill and you pay the lender back withinterest.Debit is basically like paying cash. Themoney comes directly out of your account and tothe vendor.A good way of setting up your bankaccounts in my opinion is to open a checking andsavings account. Then tell your bank you wantoverdraft protection. This means that if youcharge more to your card than you have in yourprimary checking account, then the bank willtransfer funds from savings to checking. Usuallythere is a reduced penalty for overdrafting if youhave it set up this way. Of course it's better tonever overdraft - but this is a good backup.
- answered by Justin F
Answer #2
A debit card works like a check. You better havethe money in your checking account when you use itbecause it will (in most cases) be debited withinthat banking day or the next day. Money in yoursavings will not be the account your debit card islinked to and is a separate account. A credit cardis just that-credit. You pay on that usuallymonthly and unless you pay the entire amount due,will accrue interest on the amount due. How muchinterest depends on the agreement you have withthe credit card company.
- answered by Lori S
Answer #3
A debit card is the card that automatically"debits " the money from your bank account. Acredit card is an "unsecured' card" (meaning youdon't have to put the money into an account, theyfront that money for you) you would need decentcredit in order to qualify. You should be able touse your debit card in stores etc. as long as ithas a logo on it that the stores accept.
- answered by mikeyandres2
Answer #4
debits/credits are taken directly from yourchecking. unless you have your bank accounts setup that if there isn't enough in your checking ittransfers automatically from your savings, thenyour savings will not be touched. the differencebetween debits and credits is that debits areautomatically deducted from our account and creditcharges are billed monthly and there is usually aninterest rate that applies. unless you have anactual line of credit set up with your atm card,when you use the card as "credit" it will processas a debit withdrawal, and the money will be takenout of your account once the transaction goesthrough.
- answered by Lauren F
Answer #5
The money in your savings account would not beavailable while using your debit card makingnormal purchases unless you have selected anoverdraft protection program and the funds are notavailable in your checking account. I highlyrecommend adding this to your account, in theevent that you make a purchase that is greaterthan the amount available in your checkingaccount, the bank will use money from your savingsaccount to cover the purchase. This way you don'taquire all those overdraft fees or have bouncedchecks (while writing checks). Pay close attentionto your funds! Alot of debit cards can also beused as a credit card. Its basically the samething in this case, where in both cases the monieswill be deducted from your checking account, debittakes the funds immediately while credit will takesometimes up to 4 days to completely withdraw. Thedifference between your debit card, and a creditcard, would be that credit cards are an openbalance of money availably ready to be lended frombanks, purchases using a traditional credit cardalso incrue interest on the amount you spend. (youhave to pay back more than you spend) Debit cardsare attatched to your bank account and will justdeduct money from your account to pay for thethings you've purchased :) And though you didn'task for it... After you've accrued a larger sum ofmoney in your savings account, speak to your localfinancial director and check into special savingsaccount that give you back more money for allowingthe bank to use it, such as locked savingsaccounts and bonds! :)
- answered by Tryingthisout
Answer #6
There are 2 kinds of cards for the atm machine,one that is just for taking out cash at themachine itself, and another that is used forpurchases as well as taking out or depositingmonies into your acct. you savings acct isseperate from you checking, but you can in somebanks set it up that if you go over what moniesare in your checking acct they can automaticallypull money into the checking acct from the savingsacct to cover the over draft, hope this helps
- answered by hnyyes2003
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