To ensure that your money is being managed safely and efficiently, you will want to secure it in a checking account. With this, you will get a debit card that allows you to access any and all funds whenever you need to.
But have you ever stopped to actually wonder how a debit card works? This magical card simply lets you pay for items at a grocery store or online, while also letting you withdraw money from an ATM.
A debit card is designed to be issued by the bank you secure your money with and work as both your own personal ATM and a credit card at the same time. The only difference between your credit card and your debit card is that your debit card is linked directly to your checking account, taking the money directly from there.
Debit cards are similar to credit cards in terms of the big brands that they partner with and the freedom in payments that they allow you to use. You can pay by swiping, tapping or even scanning.
Once you make the attempt at the payment, the bank will then determine whether the transaction goes through based on the current funds you have in your account. Depending on the bank you use, you could even be allowed to overdraft to a certain extent in specific scenarios.
There are actually four different types of debit cards to choose from. There are regular debit cards that let you make purchases in-person or online, as well as withdrawals of cash. Then there are ATM cards, which are solely designed for cash back and can’t be used for online shopping sprees. The other two cards are prepaid cards that are pre-loaded with money and not linked to a specific bank, and an EBT card that is given to those needing social benefits support.
Regardless of the type of debit card you choose, you can get a free debit card and even free money. This comes down to choosing the right rewards program that your free debit card is linked to.
Here are all the benefits that you can enjoy with a free debit card.
1. Get A Welcome Bonus
Often, you can get free money simply by signing up for a checking account and for a free debit card. The welcome bonus is given to new users once they make their initial deposit or confirm their details. This is one of the easiest ways to get free money and makes your decision a very profitable one.
Plus, you will likely get more rewards in addition to that if you do not spend the money immediately. So make sure to have a strategy in place so you can get the biggest bang for your buck.
2. Pay Using Your Credit Card
Another great way to get free money and enjoy the maximum benefits possible is to try to make as many payments as possible on your credit card. This will allow you to build up your credit score, which in turn will further make you a better candidate for the free debit card and free money that comes with it.
The better your credit score is, the more appealing you will be to banks and debit card providers.
3. Investigate The Reward Programs
Not all benefits are the same. Depending on what bank and debit card provider you sign up with will determine the specifics of your reward plan. So make sure to do your research ahead of time and pick the fee debit card that equally matches your own spending habbits and will line up with your own financial goals. Also, make sure you read the terms and conditions ahead of time so you really know what you are signing up for.
4. Note The Bonus Categories
Often, your rewards and benefits on your free debit card are linked to the type of spending you do. So, for example, you may get more rewards and free money if you purchase travel items. Or, you may get more benefits if you do your groceries at a certain store. Take the time to make note of the bonus categories and understand where your rewards will be maximized.
5. Budget With Benefits
Finally, you want to make sure that you are balancing out your budget with your benefits. You do not want to blow your budget simply to try to get some benefits. It is all about balance at the end of the day. So act wisely and strategically and you will be able to optimize your rewards.
Conclusion
If you plan it out right, you can not only get a free debit card, but free money as part of the rewards plans too. These five tips will help you take full advantage of everything that is being offered.