Debit cards can be a real source of purchasing power and convenience. They are a quick way to access your money and eliminate the need to carry around huge amounts of cash. You may even regard the bank account of your debit card as a savings account. But that probably should not be the case.
Debit cards are hardly a true savings account.
Your debit card is likely your payroll account. You use it to pay bills and withdraw money at ATMs Excess money available for use in the debit card is still likely goes to everyday needs, which will not contribute to the purpose of real savings account for the future or for strict emergencies.”
Debit cards also tend to make you subconsciously spend more, as those little debit purchases add up.
So how do you make sure you’re using your savings account only for your goals and not when you’re running low on money? Here are some tips for you:
Store it and forget it.
If you received a free debit card that’s linked to your bank account as a perk, then try to keep it in a safe place at home, ready to be forgotten. Carrying it around in your wallet always brings it dangerously close to being swiped.
Tapping often? Fund your account less.
Depositing P1,000 in your savings account every month only to withdraw P500 nearly as often means your budget is hardly working. Why not deposit a realistic amount into savings, something you won’t be touching anytime soon? A constant feeling of being cash-strapped can also prompt you to routinely swipe that debit card in order to survive until the next paycheck.
Keep those savings in a different bank.
A savings account that’s linked to your payroll ATM or checking account can make saving and budgeting a messy affair. Kill the temptation to tap your savings every time you’re short on cash by keeping it in a completely separate online account, where you can also earn a higher interest rate than you could at standard local banks.
The country’s first all-digital banking platform, the ING Savings Account, lets you bank on your smartphone through a secure app — no bank visits to make, long lines to endure, or tellers to deal with. You can simply deposit via interbank fund transfers and through mobile check deposit, another local first where you can take a photo of the check using your smartphone.
Promoting a true savings mindset, ING also offers a 4.0% interest rate per annum (for balance up to P10 million) for a limited time, until October 31, 2019 —up to 16 times higher than rates currently offered by other savings products in banks. Banking with ING also comes with no minimum balance, no lock-in periods, and no fees that can interfere with your personal saving goals.
Built into the app is a state-of-the-art tech that allows users to open an account ideally in less than 10 minutes, as well as enjoy other features such as liveness detection, optical character recognition, and sophisticated overall phone security. Download the ING Philippines – Digital Bank app for iOS or Android today!
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