Should I keep my money in a card or in savings?

August 10, 2023 08:27

Many customers still wonder if they have idle money that they do not need to use, is it better to keep the money in a card or save it in a bank?

According to financial experts, if you only use it for daily transactions, paying for utility services, and shopping bills, you should keep money in the card. This will bring convenience when you need to pay such as free withdrawals, money transfers, card swiping, and online payments; Easily perform other financial transactions through banking applications such as savings, paying utility bills, phone top-ups, etc.

You will not need to carry too much cash on you and easily manage the money in your card. In addition, bank cards such as Visa Credit, MasterCard are accepted in many places around the world, helping you not to be limited in shopping when traveling abroad.

However, the interest rate for depositing money into an ATM card is very low, almost no interest. Normally, the interest rate you will receive is about 0.2%/year. Depending on the regulations of each bank, the interest rate will be different, but certainly not exceeding 0.3%.

Không ít khách hàng vẫn thắc mắc nếu có một khoản tiền nhàn rỗi, chưa có nhu cầu sử dụng đến thì nên để tiền trong thẻ hay gửi tiết kiệm ngân hàng?. (Ảnh minh họa) — *Many customers still wonder if they have some idle money that they do not need to use, should they keep it in a card or save it in a bank? (Illustration photo)*

Meanwhile, if you have some idle money that you do not need to use, you should choose to save it to enjoy a higher interest rate.

A savings account is a bank account that an individual registers to deposit a certain amount of money for a certain period of time. Through that, the savings account holder will receive an interest rate corresponding to the deposit term.

A savings account acts as a “piggy bank” that will help you accumulate and generate interest on your idle money. Thus, you can manage your finances in case of unfortunate incidents such as car breakdown, illness, unemployment, etc. Banks now also offer many deposit terms from 1 month, 2 months, 3 months, etc. for customers to choose according to their needs.

How to save effectively?

Nowadays, you can save money at banks or through investment applications. To make your savings profitable, you should pay attention to the following:

You should choose to deposit savings with reputable banks and online banks to ensure safety and easy management of deposits through digital applications.

Regularly check your account/passbook balance and information.

Understand how to calculate deposit interest rates, research and choose to save at banks with high interest rates.

You should split up and open multiple savings books to easily close one book when necessary without affecting the interest you are receiving from the other books.

Understand the current forms of savings (term, specific, non-term) to make the right choice.

According to VTC