Banks will generally link debit cards to checking accounts rather than savings accounts. Although you might not see much difference between $100 in your checking account and $100 in savings account, there are subtle differences between the two that can vary from bank to bank.
If you could find a bank willing to give you a debit card linked exclusively to a savings account, you may find there are limitations to the amount of withdrawals and money transfers you can make. The reason being is that federal regulations stipulate that no more than six convenient transfers or withdrawals can be made from a savings account in a calendar month.
If you have both checking and savings accounts at the same bank, you may be able to access your savings with your debit card at an ATM. However, when you purchase an item using your debit card, the funds are usually withdrawn from your checking account in this case – not your savings.
The “Convenience” Factor
Transfers and withdrawals that are considered convenient are those preauthorized, automatic, by telephone agreement, check or debit card and made by the depositor and payable to third parties.
Impacts to Your Credit
Whether you’re looking to save for the down payment of a home or starting your retirement savings early, your savings can help you reach your personal finance goals. Having a debit card tied to your savings account can make it tempting to reach for those funds for unnecessary or impulse purchases.
About the Author
Cam Merritt has been a professional writer and editor since 1992, specializing in articles about personal finance and law. He has contributed to USA Today and the Better Homes and Gardens family of magazines and websites. Merritt has a Bachelor of Arts in journalism from Drake University.
This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.
Published by permission from ConsumerInfo.com, Inc. © 2014 ConsumerInfo.com, Inc. All rights reserved.