A debit card account can be any banking account, such as savings or checking account. A debit card account is different from a checking account in that the account holder does not get a checkbook for the former type of account.
How to set up a Debit Card Account
To set up a debit card account, you can either visit your local bank or apply online. You will need to fill up the form and submit the required documents, which could be passport size photographs, a copy of your passport or driving license, and proof of date of birth. Some banks may require you to keep a minimum monthly balance in the account. Ensure that you get a debit card account for which you will not have to pay a monthly fee.
Some banks may require minors, or people below the legal age of adulthood, to get the debit card account opened with their parents. On the other hand, other banks, such as the Royal Bank of Scotland and Natwest, open debit account for eleven to eighteen year olds.
Advantages of a Debit Card Account
The main advantages of a debit card account include:
- One of the main advantages of using a debit card account is that you will get a debit card that you can use to withdraw money from an ATM. This means that you will no longer need to carrying huge amounts of cash when you are out of the house. Also, you will not have to get money orders or use check cashing services. Debit cards are accepted at every venue that accepts MasterCard and Visa cards. You can use your debit card at gas stations, restaurants, garment and grocery stores.
- The amount of purchases you make automatically gets deducted from your debit card account. This means that you no longer need to worry about paying back the balance.
- The card holder is not required to pay an interest on his purchases.
- The debit card account holder can easily track his/her expenditures by getting an account statement, which is available at ATMs.
- Most banks offer mobile banking and internet banking services to inform you about every transaction on your account.
Disadvantages of a Debit Card Account
A debit card account also has certain disadvantages, such as:
- There is a danger of spending more than you have in your account, or going into over-draft, which requires you to keep a record of all your transactions.
- A lot of hidden charges are involved in using a debit card account.
- If you lose your debit card, consequences can be worse than those for lost credit cards.