Get a Debit Card for Your Savings Account: It's Possible!

Your bank may not provide a debit card for your savings account since savings accounts are meant to help you save money over time and not for everyday expenses.

However, instead of a debit card, your bank might offer an ATM card with limited features and a restricted number of transactions per month. Although this card allows you to withdraw cash from your savings account, it does not permit you to make direct purchases.

Here are some alternative ways to access your money when a debit card is not an option:

• Savings Accounts Do Not Usually Come with Debit Cards

Frequently, you will not be able to use your savings account to pay for your purchases using a debit card. While it can be inconvenient, this restriction makes sense as savings accounts serve as a tool to safeguard your savings. Moreover, a debit card makes it too easy for you to use your saved funds.

According to Regulation D of the Federal Reserve Act, banks had to reserve a fixed sum of money in their own accounts, which made it inaccessible for customers. Consequently, banks imposed restrictions to prevent customers from withdrawing too much of their savings.

However, in March 2020, the Federal Reserve eliminated this requirement for most banks to provide customers with greater access to their money and credit during the pandemic. Some banks still limit the number of transactions per month, with six being the common limit. Nevertheless, some banks have increased the number of transactions. For example, American Express' online bank permits nine withdrawals per statement cycle for their high-yield online savings account without any additional fees.

How to Withdraw Money from Your Savings Account

If your bank provides an ATM card for your savings account, you can withdraw cash using any ATM. Besides, if you have a savings account and a checking account, you can choose which account to withdraw money from when you visit an ATM.

Alternatively, you can transfer money from your savings account to your checking account, which is swift and convenient when you have accounts in the same financial institution. You can use your debit card to withdraw money from your checking account.

However, remember to check the fees and withdrawal limits on your accounts before making such transactions. For example, Chase charges a $5 fee for every transaction that exceeds six per month, with a monthly limit of $15. Exceeding the withdrawal limitations frequently will lead to the conversion of your savings account to a checking account by your bank.

Safe Withdrawal from Savings Account

Although having restricted access to your funds can be inconvenient, it can benefit you by ensuring you do not spend money you have saved diligently.

Fortunately, with the availability of ATM cards and instant online transfers to checking accounts, alleviating fiscal burdens is just a matter of a few clicks. However, it is always wise to invest the time to comprehend the rules and tariffs prescribed by your bank before executing a withdrawal or transfer from your savings account, as awareness could effectively mitigate or preclude needless charges or miscommunications."