The name says it all, first savings credit card, is the first ever credit card you get after saving some money. You have just stepped into a whole new world, a world of adults. Yes, it is scary indeed, and the first thing you realize is that you need money. Before you decide to open an account at a first savings bank, here are a few things you should take a peek at.
What is a First Savings Credit Card?
Good question, as the name says it all, a first savings credit card is a card used by young adults to help them manage their savings. The first savings credit card is a bit different than other normal credit cards. This one has a certain limit the user can consume per day. The amount you can utilize varies from card to card. Some cards have the limit of US $300 whereas another can have the US $500.
How is a First Savings Credit Card Helpful?
Saving is not easy. If you have a knack for saving since your childhood, you should be proud. However, if you have a bit of trouble in that department then this card is for you. A first savings credit card allows you to withdraw a certain amount. When you have been limited to a certain amount, you have to learn to manage it, and you have to learn how to do more in less. At a very young age, you have to start saving for things like college, first car, trips, and much more.
What are the Advantages of a First Savings Account?
It is really very obvious that when you are saving you want to have advantages. This kind of savings account is an ideal type of account for individuals who have just started to save. The advantages of owning a savings account are like being able to withdraw money any time; other investments like certificates of deposits take a longer time and can be very unpleasant. Your savings account will not require a big investment amount; you will not need to deposit large amounts though it depends on the account type. Like most checking accounts, saving accounts are insured from FDIC. More advantages include automatic deductions for payment of bills and also a minimal monthly fee. Your first savings credit card can be used at almost any ATM giving you easy access to cash when you want, where you want.
What are the Disadvantages of a First Savings Account?
Long term savings are difficult as easy cash access is available all the time making it very tempting. Easy cash access means you can buy what pleases your eyes no matter what the cost. These kinds of first savings accounts have the lowest return rates compared to other types of accounts. Most of the accounts have a balance requirement, which is the minimum. When account balance drops below the minimum point, the holder or owner of the card/account is charged. FDIC insures accounts which have a certain amount of cash; this may become a concern for those individuals who save cash which is more than the amount the FDIC insured.
Let us know your experience with your first savings credit card, and feel free to share tips you have used as well.