BankcardsMyths about finances

Popular myths about bank cards

In all likelihood, you are using at least one bankcard. Yet, are you aware of the fact there are different types of bankcards? Do you use your bankcard for investing? Read this article and find more about the popular misbelieves about bankcards which are not allowing people to use a full potential of bankcards.

Bankcards with free bank maintenance are better than the one for which you have to pay

In fact, there are two major types of bankcards when it comes to the costs of their usage. The first type are free bankcards for which you do not have to pay anything. Another type are bankcards which require monthly payment for their maintenance.

As you can imagine, many people believe it is just better to use a card which is available completely for free. Yet, it does not necessarily mean it. There is another crucial feature of bankcards which should be considered. It is the amount of cashback which can be received while purchasing goods and paying for services with your bankcard. For some people, such a card can be more profitable.

Obviously, everything depends on the percentage of cashback one can receive with a particular bank card as well as on the average amount of money one spends with his or her bank card a month. In some situations, choosing a card with a cashback which requires payment for maintenance can be profitable. A completely free bankcard without cashback is never profitable.

By the way, you should pay attention to a possibility of getting a bankcard which does not require payment if special conditions are met such as, for example, making transactions for a particular sum of money during a month or leaving a particular amount of money on your account at the end of the month.

There is no difference between bankcards

As you have just learnt, there is a difference when it comes to the costs of maintenance of bank cards since some of them are offered completely for free whereas others require a monthly payment. You have also learnt about cashback which is available for some cards. What you also need to know is the difference between credit and debit card.

Actually, some people use the term a credit card as a synonym to the term a bankcard, however, it is crucial to understand not all of the bankcards are of a credit type.

The idea of a debit card is allowing a client of a bank to access the money which is stored on his or her bank account. For instance, such a bank account can be used for receiving a salary. Such bankcards can be used for a wide variety of operations including purchases on the Internet and in land-based shops. Yet, there is a crucial limitation for the money which can be used for such transactions. A bank client with a debit card can use exclusively the money stored on his or her bank account.

That is the difference between a debit card and a credit card. The letter one will allow you to use the money of the bank. On the one hand, a person gets access to extra money at any moment he or she needs it. On the other hand, the money will certainly have to be returned to the bank which usually required paying an interest rate as well.

It is not beneficial to store one’s money on a bankcard

One of the popular ways of storing one’s saving is on a bank account. Even though it is a widespread option used by many people, the majority of them admit it is not a way of investing as it is more a way of saving money from inflation since the interest rate in such a case is pretty low.

At the same time, many people do not even consider an option of storing money on a bankcard as a sensible way of managing one’s budget. That is because of an even smaller interest rate featuring bankcard accounts.

In the reality, such accounts have their own advantages and one of them is an opportunity to pay money out whenever a person wants without the limitations featuring specialised bank account designed for saving money. In addition to it, a person can pay money to one’s account at any moment as well.