Benefits Of Using A Debit Card For Everyday Expenses

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While digital banking is making fast inroads across India, debit cards still remain one of the important financial tools for carrying out various types of transactions. Whether shopping for groceries, dining out, or paying bills, a debit card is handy. In fact, this permanent resident of our wallet has extended to become a smart tool for accessing funds and managing savings account expenses.

In this blog, we shall dive into the features and benefits of using debit cards for daily expenses and answer some common queries on using debit cards for everyday use. 

What is a debit card?

A debit card, also called an ATM card, is a payment card that deducts money directly from your bank account on every transaction - whether done through an online portal or via a physical store. It can also be used to withdraw and deposit cash from ATMs. 

Some people confuse a debit card with a credit card – but the key difference to remember is that with a debit card, you only use the funds that you already have (in your linked bank account). In contrast, credit cards allow you to borrow money from the bank up to a certain limit.

Should you use a debit card for everyday purchases?

First, you can use a debit card for everyday purchases within your funds limit. It simplifies payments, provides a secure way to transact, and helps you avoid debt by ensuring you only spend what you have. So, using a debit card for everyday purchases is perfectly alright.

In fact, with the evolution of digital banking, debit cards are becoming more secure and feature-rich – making them more attractive for daily expenses.

Key Features of debit cards

Regarding the features of debit cards, every card provider comes with different features. In addition to the wide access to physical ATMs and online avenues that accept debit cards, some of the most common and useful features of these cards are:

Contactless Payments: You can simply tap your card for quick, secure transactions at compatible merchant terminals.
EMI Conversion: Convert your large purchases into manageable chunks of EMIs that deduct automatically.
Global Acceptance: Most debit cards work for payments and ATM withdrawals worldwide, albeit with additional charges in foreign locations.
Expense Tracking: Debit card insights via connected mobile apps let you track and manage your spending with detailed transaction histories.

5 Advantages of debit cards in everyday usage

Now convinced of its versatility, below we look at how can you benefit from using your debit card for everyday expenses:

Budget Management: Since debit cards are linked to your bank account, they help you track your expenses by monitoring every transaction.
Convenience: Cash can be tricky to handle, especially if you want to carry a large amount or are travelling through an insecure region. Here, a debit card can save the day, given its wide acceptance among merchants and ATM availability as well.
Security: Debit cards come with advanced security features like chips, PIN technology, OTPs, etc. for safe online transactions, scam protection, and even fraud reporting.
Rewards and Offers: Many debit cards, including the ones by Kotak811, provide attractive rewards, cashback, and discounts on using debit cards for everyday items.
Access to Funds: Whether you're withdrawing cash from an ATM or making a purchase, a debit card gives you instant access to your money.

Endnote

Overall, incorporating a debit card into your everyday purchase routine is not only convenient but also a smart choice for you to track your money spends. To make the most of the benefits of a debit card, choose the one whose features can serve your lifestyle and offer the best rewards.

One such popular debit card in India is the 811 Debit Card by Kotak811. It is designed to cater to your everyday needs – both at online and physical payment avenues.

FAQs

1. What is the main purpose of a debit card?

The main purpose of a debit card is to provide secure, convenient access to your bank funds for purchases, withdrawals, and online payments.

2. Is it safe to use your debit card everywhere?

Yes, it is generally safe to use a debit card everywhere. However, always remain alert with your personal banking information and verify the merchant's reputation.

3. Is it better to use debit or credit?

It would depend upon your financial needs and goals. Generally, it is recommended to use a debit card to control spending within a limit, while a credit card is used to build credit and earn rewards.

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This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.