Discover These Debit Card Benefits that are Unknown to Many Users – How do your regular expenditures? Due to the recent health crisis and technological advancements, many prefer cashless transactions. Using a debit card, for instance, has been traditionally linked to better cash security and spending habits.

You may have both credit and debit cards, and while you may already be aware of credit card perks like cashback rewards and point accumulation, you may not know that debit cards also come with an amazing slew of benefits. Let’s list some to take full advantage of your debit card.

Avoid fees and service charges

Unlike credit cards with typical annual fees, late payment charges, and high foreign transaction fees of up to 3%, plus other costly extras, debit cards generally offer less or no fees. Using your debit card carefully lets you avoid fees altogether.

Some banks charge a few dollars added to the ATM’s fee if you withdraw cash from an unaffiliated ATM. These fees can be dodged if you plan. Visit an in-network ATM when you know you’ll need cash. You can also use a store’s cash back option when paying with your debit card.

Online and mobile banking through top debit card Singapore providers like POSB also allows users to check their balance anywhere to ensure enough money before using the debit card, reducing issues like overdrafts.

Spending accountability

Debit cards are also referred to as “check cards.” Debit card purchases take the money from your checking account straightaway. Real-time payment holds you accountable only to spend what you have. Making impulsive purchases with a debit card is harder since you can’t spend beyond your means.

Faster payments and budgeting

Debit cards hold you accountable to spend responsibly and make it easier to follow a budget while resisting overspending. For paper checks, it may not be cashed for days or even weeks. Meanwhile, you could spend more than you have, especially if you don’t accomplish a daily account reconciliation. Faster and, in many cases, immediate payments linked to debit cards make it clear how much money you spent and have left. Debit cards Singapore encourages offers online and mobile banking, budget management apps, and others, letting you see up-to-the-minute balances and account activity.

No interest charges

One of the biggest reasons to use a debit card instead of a credit card is that credit cards are known for high-interest rates that can sometimes fluctuate, usually in response to changes in the Prime Rate. The annual percentage rates on credit cards can range from 10% to as high as 33% (if you get a penalty interest rate due to late payments). Also, if you’re not disciplined about balance repayments every month, credit cards can hurt you financially. Paying with debit cards lets you avoid these interest charges that greatly increase your original purchase price.

Security

Getting your wallet stolen means your cash is gone forever. Debit cards protect against theft since your ATM cannot work without the PIN. The addition of chips to debit cards boosted their protection. Some debit cards in Singapore have also provided security protection for online shopping, only allowing purchases with your card.

There you have it. You can learn more about Singapore’s top debit cards by visiting bank websites. Be on the lookout for promos and the fine print before you commit.