Credit cARD?

6 Comments

1. Justin F says:

   March 3, 2010 at 9:41 pm

   Usually you dont get Debit cards for savings accounts. The reason is because of a Federal law that only lets you take money out of Interest Bearing Accounts 6 times a month.

   I’m guessing, if you got a debit card – its a non-interest bearing checking account.

   Credit means you sign for the item, the bank pays the bill, then the bank gets the money back from you, most banks its within 3 days of the purchase. This is different from an actual credit card in which the lender pays the bill and you pay the lender back with interest.

   Debit is basically like paying cash. The money comes directly out of your account and to the vendor.

   A good way of setting up your bank accounts in my opinion is to open a checking and savings account. Then tell your bank you want overdraft protection. This means that if you charge more to your card than you have in your primary checking account, then the bank will transfer funds from savings to checking. Usually there is a reduced penalty for overdrafting if you have it set up this way. Of course it’s better to never overdraft – but this is a good backup.
2. Lori S says:

   March 4, 2010 at 10:17 am

   A debit card works like a check. You better have the money in your checking account when you use it because it will (in most cases) be debited within that banking day or the next day. Money in your savings will not be the account your debit card is linked to and is a separate account. A credit card is just that-credit. You pay on that usually monthly and unless you pay the entire amount due, will accrue interest on the amount due. How much interest depends on the agreement you have with the credit card company.
3. mikeyandres2 says:

   March 5, 2010 at 7:41 pm

   A debit card is the card that automatically “debits ” the money from your bank account. A credit card is an “unsecured’ card” (meaning you don’t have to put the money into an account, they front that money for you) you would need decent credit in order to qualify. You should be able to use your debit card in stores etc. as long as it has a logo on it that the stores accept.
4. Lauren F says:

   March 6, 2010 at 8:30 pm

   debits/credits are taken directly from your checking. unless you have your bank accounts set up that if there isn’t enough in your checking it transfers automatically from your savings, then your savings will not be touched. the difference between debits and credits is that debits are automatically deducted from our account and credit charges are billed monthly and there is usually an interest rate that applies. unless you have an actual line of credit set up with your atm card, when you use the card as “credit” it will process as a debit withdrawal, and the money will be taken out of your account once the transaction goes through.
5. Tryingthisout says:

   March 9, 2010 at 7:03 am

   The money in your savings account would not be available while using your debit card making normal purchases unless you have selected an overdraft protection program and the funds are not available in your checking account. I highly recommend adding this to your account, in the event that you make a purchase that is greater than the amount available in your checking account, the bank will use money from your savings account to cover the purchase. This way you don’t aquire all those overdraft fees or have bounced checks (while writing checks). Pay close attention to your funds! Alot of debit cards can also be used as a credit card. Its basically the same thing in this case, where in both cases the monies will be deducted from your checking account, debit takes the funds immediately while credit will take sometimes up to 4 days to completely withdraw. The difference between your debit card, and a credit card, would be that credit cards are an open balance of money availably ready to be lended from banks, purchases using a traditional credit card also incrue interest on the amount you spend. (you have to pay back more than you spend) Debit cards are attatched to your bank account and will just deduct money from your account to pay for the things you’ve purchased And though you didn’t ask for it… After you’ve accrued a larger sum of money in your savings account, speak to your local financial director and check into special savings account that give you back more money for allowing the bank to use it, such as locked savings accounts and bonds!
6. hnyyes2003 says:

   March 12, 2010 at 2:09 am

   There are 2 kinds of cards for the atm machine, one that is just for taking out cash at the machine itself, and another that is used for purchases as well as taking out or depositing monies into your acct. you savings acct is seperate from you checking, but you can in some banks set it up that if you go over what monies are in your checking acct they can automatically pull money into the checking acct from the savings acct to cover the over draft, hope this helps