Is a debit card a checking account or savings account?

A debit card is usually associated with a checking account. When you open a checking account, the credit union or bank will issue a debit card that is tied to that account. The debit card gives you access to the money in your checking account. You can use the debit card instead of cash at shops and restaurants, for online payments, and you can use it to withdraw cash at ATMs.

Are there any savings accounts with debit cards?

We understand some consumers may be seeking a free savings account with a debit card. Some financial institutions offer savings accounts with debit cards. However, savings accounts are usually limited to 6 withdrawals or transfers per month. If you use your debit card often, you may end up paying fees for excessive transactions, or the savings account may be converted to a checking account. This could be costly if you have a high-yield savings account with a debit card.

Some financial institutions may let you link your savings account to a debit card if you also have a checking account with them. In these cases, you can transfer money from your savings account to your checking account to make debit card purchases.

Should I use a debit card or a credit card to pay for purchases?

Some experts suggest that consumers use credit cards for most transactions. However, we know that debit cards can come in handy for many people. So, depending on what kind of shopper you are and where you’re shopping, here’s some guidance to help you decide when to use a debit card or credit card: