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- If you'd like access to your account, some bank accounts have a debit card or ATM card.
- ATM cards are solely for ATM access, but debit cards let you purchase items.
- When you are managing a bank account with a card, be mindful of overdrawing or potential ATM fees.
- Compare the best free checking accounts.
If you're looking for a bank account that provides easy access to your money, you'll often find many options, such as a debit card or ATM card.
While a debit card provides ATM access, it's not exclusively the same as an ATM card. By knowing the differences between these two cards, you'll have a better understanding of your card's limitations and how to manage your account.
Here's what you should know about debit cards and ATM cards, so you know exactly what you're getting before opening an account.
ATM card vs. debit card: At a glance
While ATM cards and debit cards provide access to your bank account, their functionality is completely different. ATM cards have more limitations to how they can be used.
- An ATM card is a bank account tool that only allows you to use money from your account if you are by an ATM.
- A debit card is a bank account tool that lets you use money from your account anywhere, including purchasing items.
An ATM card only provides ATM access to your bank account. You'll be able to withdraw money from an ATM, check your account balance, or transfer money to different bank accounts.
ATM cards are often attached to money market accounts. However, some financial institutions also offer an ATM card with a checking account or savings account.
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Quick tip: An ATM card could be suitable if you only need access to money in your bank account. For instance, if you have a money market with an ATM card, it'll be easy to deposit or withdraw money, and you won't need to go to a bank or own a checking account.
What is a debit card? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.A debit card lets you use money from your bank account to use ATMs or make purchases.
Be mindful that debit cards have daily purchase limits, which ATM cards do not have. Daily purchase limits put a cap on the amount you can spend when using a debit card.
Debit cards are usually included in checking accounts. However, some financial institutions also offer a debit card with a money market or savings account.
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Quick tip: You'll prefer a debit card to an ATM card if you plan to use your card often. However, make sure you know your daily ATM withdrawal limit and debit card purchase limit. You can check for your institution on this list or contact your bank.
How to manage a bank account with a card
Erika Safran, CFP® and principal at Safran Wealth Advisors, LLC, says a bank account with a card may be ideal for someone young or who doesn't have a credit card yet. If you get an account with a card that lets you spend, Safran points out you'll have a valuable feature because it's difficult to live without a credit card.
Safran says there are several bank fees to be mindful of before getting an account with a card, like monthly services or out-of-network ATM fees.
Quick tip: Overdraft fees may cost up to $35.
"If you take cash from an outside vendor, so to speak, then it's likely not only you will be charged for using that machine, but then your bank may also charge you," says Safran. "Let's say you take $20 out of the candy store ATM. The candy store will charge you $2 for using their machine, and then your bank may charge you another $3 for banking outside their system. That means it just cost you $5 to take out $20. That's big."
If you can purchase items with your card, Safran says it's also important to be mindful of overdrawing from the account. You could have to pay overdraft fees.
"You're in a hurry, or need the cash or you're not paying attention. It's possible you may take out more than you have and end up owing more than you took out," Safran adds.
Sophia Acevedo, CEPF Banking Reporter Sophia Acevedo is a banking reporter at Business Insider. Sophia joined Business Insider in July 2021. She writes bank reviews, banking guides, and banking and savings articles for Personal Finance Insider. She is also a Certified Educator in Personal Finance (CEPF).Sophia is an alumna of California State University Fullerton where she studied journalism and minored in political science. She is based in Southern California.You can reach out to her on Twitter at @sophieacvdo or email sacevedo@businessinsider.com.Read more about how Personal Finance Insider chooses, rates, and covers financial products and services >>Below are links to some of her most popular stories:- Are banks open today? Here's a list of US bank holidays for 2023
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