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Although you can use a debit card to access your funds, banks do not allow you to get a debit card with a savings account.
If you don't feel like opening another bank account, however, some options are still available for accessing funds in your savings account with the help of a debit card.
How to Access Your Savings Account's Funds
To access your savings account funds, there are two main options you can use:
- Get ATM Debit Card: You will be able to withdraw money from savings at an ATM if your bank provides an ATM card for savings accounts. Alternatively, if you have a checking and a savings account with the same bank, you can decide which account to use to withdraw when you visit an ATM.
- Transfer From Checking: Another choice is to transfer funds from your savings account to your checking account. If you have both accounts with the same financial institution, this process is usually quick and simple. After that, you can take money out of your checking account using your debit card.
Why There Is No Debit Card For Savings Accounts?
There are two main reasons why most banking institutions do not allow you to get a debit card for your savings account.
- Access to easy funds can encourage people to spend more than they have in their accounts, putting them at risk of overdraft fees and other penalties.
- Debit cards provide a great way for thieves and scammers to steal money from depositors' accounts. For these reasons, banks prefer users to link their savings accounts with other checking or DDA accounts to minimize the risks associated with direct access to cash reserves.
Why Accessing A Savings Account With A ATM Card Is Not A Good Idea?
There are a few reasons why it may not be a good idea to link your savings account to a debit card.
- Overspending: One of the primary reasons linking a savings account with an ATM debit card is not the best practice is that it can lead to overspending and financial mismanagement.
- ATM Fees: When you use your ATM debit card, you'll incur an ATM fee each time you use it.
- Fraudulent Activity: By connecting your savings account with an ATM debit card, you open yourself up to potential losses due to fraudulent behavior or theft. Although online transactions are getting safer daily, hackers are also getting smarter.
ATM Card vs Debit Card: What's the Difference?
The main difference between the two is that ATM cards are designed specifically for withdrawing cash, while you can use debit cards for withdrawals or for making purchases from physical or online merchants.
- Pros and Cons of a Debit Card
A debit card can act like your credit card and an ATM card. The only difference, when using it like a credit card, is that the money comes out of your checking account instead of debt. You can use a debit card for everyday purchases and online shopping and withdraw cash from ATMs.
For the cons, a debit card could make it easier to overspend – because once you've spent the money on your debit card, there's no extra amount available in your account for you to draw, which could result in expensive fees other than the actual purchase that you would make.
Pros | Cons |
|---|---|
Available From Checking | Immediate Payment |
No Fees | Overdraft |
- Pros and Cons of an ATM Card
The biggest advantage of an ATM card is that you never spend any money that you don't own.
You can only spend the money that you have. On the other hand, using an ATM card limits your ability to make larger purchases. And, if you want to withdraw cash but don't go to an ATM regularly, it can be inconvenient as there may not be one nearby or available when you need it.
Ultimately, there is no right choice when considering an ATM card versus a debit card – whether you choose to use one or both depends on your spending and lifestyle habits.
Pros | Cons |
|---|---|
Spend What You Have | Need ATM |
Which Type of Bank Account Offers Debit Cards?
The only type of account that typically comes with a debit card is a checking or demand deposit account (DDA). This is because banks view these types of accounts as more transactional and easier to manage than savings accounts, so they prefer customers to use them for day-to-day spending needs.
To link your DDA or checking account with a debit card, you simply log into your online banking portal and update your linked cards. Once the changes are made, you'll be able to access funds at ATMs or through point-of-sale transactions just like any other debit cardholder.
Keep in mind that most banks charge transaction fees for withdrawing cash from a non-network ATM, so it's often best to find a local ATM in your area to use for cash withdrawals.
If you're looking for a more secure way to access your savings account funds, it might be best to consider opening a money market account instead.
Why Money Market May Be Your Best Alternative to a Savings Account?
Are you looking for a better way to manage your savings? Money market accounts are a smart alternative to traditional savings accounts and can offer greater returns without giving up all of the features you’d expect from an everyday bank account.
They typically offer higher interest rates than regular savings accounts. This is because money markets are FDIC-insured, meaning that your deposits are protected up to $250,000 in case of bank failure.
Flexible, Cheap, And Easy To Use
Another advantage is their flexibility – you can transfer funds between checking, and money market accounts with ease, allowing you to access and invest your funds quickly when needed.
Finally, money market accounts are often more flexible regarding fees and minimum balance requirements than regular savings accounts. Many banks don’t charge any fees or require a minimum balance for their money market accounts, making them accessible even if you don’t have a large sum of money in the account.
Before investing any significant amount of money into a money market account, make sure that you understand the terms and conditions associated with it. Some banks may charge monthly or annual fees for their services, so be sure to read the fine print before signing up for an account.
Can You Link a Savings Account to Cash App, Zelle, Or Venmo?
Electronic payment services like Cash App, Zelle, and Venmo are convenient ways to send money from peer to peer.
However, it is not possible to link a savings account to any of these services. Instead, let's look at how you can link your checking account with these apps.
- Cash App
To link your checking account to the Cash App service:
- Open the Cash App mobile app on your phone or tablet.
- Tap the Profile Icon on your Cash App home screen
- Select Linked Banks
- Tap Link Bank
- Follow the prompts
- Zelle
To link your checking account to the Zelle service:
- Download the Zelle app if necessary or log into your bank's website if available as an option for Zelle payments.
- Enter your email address or phone number to start sending money via Zelle.
- Select “Add Bank Account” from within either platform (app or website).
- Provide relevant banking information, such as routing and account numbers, as requested by the platform.
- You will receive a confirmation message when the process is complete.
- Venmo
To link your checking account to the Venmo service:
- Log into Venmo either through their website or mobile app, depending on which type of device you are using.
- Select Settings from within either platform (app or website).
- Select “Banks & Cards” followed by “Link A Bank”.
- Provide relevant banking information, such as routing and account numbers, as requested by the platform.
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FAQs
You can withdraw money from a savings account using multiple methods, such as wire transfer, check writing, or electronic transfer. To withdraw money in person, you can visit your local bank branch and request a cash withdrawal.
Alternatively, you can use online banking platforms or apps to initiate an electronic transfer or issue a check by mail.
There is generally no direct way to link a credit card to a savings account. However, you may be able to indirectly access your funds by linking your checking account to a credit card or line of credit.
This will allow you to transfer money from your savings account into your checking account as needed, which can then be used for making purchases or paying your credit card bill.
Since the purpose of a savings account is to hold and grow your cash reserves, it is typically not possible to make payments directly from a savings account.
However, you may be able to use your checking account or a linked credit card as an intermediary to move funds from your savings into other accounts that allow you to pay bills or make purchases
There are a few different ways to link your checking and savings accounts, such as via online banking platforms or wire transfers.
To get started, you typically need to provide some basic information about your accounts, including account numbers, routing numbers, and other relevant details.
