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The main difference between a debit card and a credit card is that you can use it to manage the money that you already have in your account. You can transfer money, pay for goods and services, withdraw cash from ATMs - but only up to the amount on the account.
You will receive the card after you open an account with the bank, and not vice versa. Therefore, you need to be as careful as possible when choosing both a bank and a card, because, in fact, you will entrust your money to the bank. And it is very important to carefully read all the terms of the contract and not sign it without looking. Since you enter into a bank account agreement with the bank, your debit card money will be insured - under the deposit insurance law.
How to choose a bank?
1. Assess the bank's reliability
Before choosing a card, check if the bank is included in the deposit insurance system. This can be done by calling the hotline of the Deposit Insurance Agency or on the official website of the DIA . And try to assess the financial condition of the bank and the so-called reliability rating (ranking): find out what assets and capital it has, whether there is a profit. You can find information on the financial condition of a particular bank on the Bank website.
2. Rate the convenience of the bank
The convenience of the bank is a subjective criterion, the main thing is that its services meet your needs. What should you pay attention to?
3. Study reviews of the bank
Do not be afraid to ask the bank's specialists questions about cards and their service. Ask friends and acquaintances in which bank they opened an account and received a card, if they are satisfied with the conditions - this will give you a real experience. Study the reviews about the bank on the Internet, pay attention to how quickly and correctly one or another bank solves the problems of users. This is also important: some banks are famous for caring and high-quality customer support, while others are known for their ability to skillfully ignore customer complaints.
How to choose a card?
1. Decide what you need the card for
Do you need a card urgently or are you ready to wait for its release? Are you going to pay with it on the Internet? Do you want to use it abroad? By answering these questions, you will understand which type of card (instant or classic, personal or unnamed) will suit you, which payment system (international or local) will be convenient for you, whether you need the ability to open a foreign exchange account.
Read more: "Types of payment cards"
2. Compare loyalty programs of different banks
Cashback
Cashback works like this: you use your card to spend money on purchases and services, and a small percentage of these purchases are returned to you. Check for what services and purchases you will be refunded - many loyalty programs have restrictions and additional bonuses by location and type of purchases.
Bonuses
Travelers can earn miles for a new flight, while shopping lovers can get discounts on purchases in selected stores. In addition to the loyalty program from the bank, you can additionally participate in the loyalty program from the payment system to which your card belongs.
3. Compare the service charges for the card
Annual service fee
Typically, the more features and capabilities a card has, the higher the service charge. When choosing a card, you should not rely only on advertising offers - they emphasize the advantages of the card and are silent about the restrictions. Compare the offers of banks, ask questions, choose the best tariff for yourself.
If you have chosen a card with annual payment, and among the services there is cashback and interest on the account balance, the card may be free for you if the interest or cashback compensates for the service charge. Also check with the bank for such moments, ask them to choose a good offer for you.
Transfer fees
Most often, transfers are free within one bank, but when transferring to another bank, you will have to pay. Think in advance to whom you will most often transfer money (or from whom you will receive). Most likely, it will be more profitable for you to open an account with the same bank that most of your "financial contacts" have, most banks do not charge a commission for transfers between their clients. Pay attention to this nuance: some banks charge a commission for transfers between accounts opened in different branches. That is, if you and your grandmother have an account in the same bank, but she has it in the Perm branch, and you have it in a Moscow branch, then you may have to pay a commission by sending money to her. At the same time, there are banks that allow you to transfer without interest to other banks. Specify in advance the terms of transfers both within the bank and to other banks.
Commission for withdrawing cash from an ATM
If you withdraw cash from your bank's ATM (that is, the bank where you opened the account and which issued your card), then, as a rule, you do not pay a commission for this. If you withdraw cash from ATMs of another bank, you will have to pay. The size of the commission is determined by the bank. However, it happens that several banks enter into a partnership agreement, according to which their clients can withdraw money for free. Then you can withdraw cash from the ATM of your bank's partner and not pay extra money for it. Study in advance the conditions for withdrawing cash: does your bank have partner banks, how much is the commission for withdrawing in other banks. But whenever possible, withdraw cash from your bank's ATMs.
You will receive the card after you open an account with the bank, and not vice versa. Therefore, you need to be as careful as possible when choosing both a bank and a card, because, in fact, you will entrust your money to the bank. And it is very important to carefully read all the terms of the contract and not sign it without looking. Since you enter into a bank account agreement with the bank, your debit card money will be insured - under the deposit insurance law.
How to choose a bank?
1. Assess the bank's reliability
Before choosing a card, check if the bank is included in the deposit insurance system. This can be done by calling the hotline of the Deposit Insurance Agency or on the official website of the DIA . And try to assess the financial condition of the bank and the so-called reliability rating (ranking): find out what assets and capital it has, whether there is a profit. You can find information on the financial condition of a particular bank on the Bank website.
2. Rate the convenience of the bank
The convenience of the bank is a subjective criterion, the main thing is that its services meet your needs. What should you pay attention to?
- Internet banking and mobile banking. You will most likely find these services useful. It is better to collect information in advance about how they work, how convenient they are in the bank of your choice.
- The number and location of ATMs and bank branches. Look on the map, ATMs and branches of which banks are near your home or office, check the opening hours of branches. It is logical that the more ATMs and branches, the more convenient it is for the bank's client.
- Prospects for cooperation . Often, regular and reliable clients of banks get benefits. Perhaps in the future you will use other products and services of the bank: take a loan, make a deposit. Therefore, it is better to study in advance if the bank has offers that will suit you in the future.
3. Study reviews of the bank
Do not be afraid to ask the bank's specialists questions about cards and their service. Ask friends and acquaintances in which bank they opened an account and received a card, if they are satisfied with the conditions - this will give you a real experience. Study the reviews about the bank on the Internet, pay attention to how quickly and correctly one or another bank solves the problems of users. This is also important: some banks are famous for caring and high-quality customer support, while others are known for their ability to skillfully ignore customer complaints.
How to choose a card?
1. Decide what you need the card for
Do you need a card urgently or are you ready to wait for its release? Are you going to pay with it on the Internet? Do you want to use it abroad? By answering these questions, you will understand which type of card (instant or classic, personal or unnamed) will suit you, which payment system (international or local) will be convenient for you, whether you need the ability to open a foreign exchange account.
Read more: "Types of payment cards"
2. Compare loyalty programs of different banks
Cashback
Cashback works like this: you use your card to spend money on purchases and services, and a small percentage of these purchases are returned to you. Check for what services and purchases you will be refunded - many loyalty programs have restrictions and additional bonuses by location and type of purchases.
Bonuses
Travelers can earn miles for a new flight, while shopping lovers can get discounts on purchases in selected stores. In addition to the loyalty program from the bank, you can additionally participate in the loyalty program from the payment system to which your card belongs.
3. Compare the service charges for the card
Annual service fee
Typically, the more features and capabilities a card has, the higher the service charge. When choosing a card, you should not rely only on advertising offers - they emphasize the advantages of the card and are silent about the restrictions. Compare the offers of banks, ask questions, choose the best tariff for yourself.
If you have chosen a card with annual payment, and among the services there is cashback and interest on the account balance, the card may be free for you if the interest or cashback compensates for the service charge. Also check with the bank for such moments, ask them to choose a good offer for you.
Transfer fees
Most often, transfers are free within one bank, but when transferring to another bank, you will have to pay. Think in advance to whom you will most often transfer money (or from whom you will receive). Most likely, it will be more profitable for you to open an account with the same bank that most of your "financial contacts" have, most banks do not charge a commission for transfers between their clients. Pay attention to this nuance: some banks charge a commission for transfers between accounts opened in different branches. That is, if you and your grandmother have an account in the same bank, but she has it in the Perm branch, and you have it in a Moscow branch, then you may have to pay a commission by sending money to her. At the same time, there are banks that allow you to transfer without interest to other banks. Specify in advance the terms of transfers both within the bank and to other banks.
Commission for withdrawing cash from an ATM
If you withdraw cash from your bank's ATM (that is, the bank where you opened the account and which issued your card), then, as a rule, you do not pay a commission for this. If you withdraw cash from ATMs of another bank, you will have to pay. The size of the commission is determined by the bank. However, it happens that several banks enter into a partnership agreement, according to which their clients can withdraw money for free. Then you can withdraw cash from the ATM of your bank's partner and not pay extra money for it. Study in advance the conditions for withdrawing cash: does your bank have partner banks, how much is the commission for withdrawing in other banks. But whenever possible, withdraw cash from your bank's ATMs.
