banking

What is a debit card?

 

What is a debit card?

The Bankrate.com financial term of the day is: "Debit card."

A debit card is a very valuable piece of plastic. It's a kind of key that opens your bank account and removes the money when you buy something. There are direct debit cards that require you to enter a personal identification number, or PIN, at the point of sale to release the purchase amount from your checking account almost immediately. There are also signature-based, or deferred, debit cards that require you to sign your name. With these cards, the money to make the purchase is removed from your account in two or three days.

A debit card is a good choice if you want to go shopping without having to carry around a lot of cash and without the risk of credit card debt.

To find the best checking account, visit the checking and savings section at Bankrate.com.

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

Ask Dr. Don

How often to compound interest?

Dear Dr. Don, Is it better to have interest compounded on your money daily, monthly or quarterly? Which gives you the most for your money invested? Thanks, -- Jan Juxtapose Dear Jan, With all else being equal, the more... Read more

advertisement
Partner Center
advertisement

Connect with us