Some Tidbits on Philippine Debit/Prepaid/Reloadable/Stored Value Cash Cards
One way of managing your finances without the use of credit cards is by getting a debit card or a prepaid/cash card (or stored value card whichever you may call it). You will be able to really have that discipline in spending your money since what you purchase depends on what you currently have saved in your card.
There are so many names for these cards but the main purpose is the same: you have to load funds to it in order for you to be able to use it, just like in the case of a prepaid phone -- you can't call/text/surf until you put enough funds to it.
But what's the difference between debit and prepaid/cash cards you might ask?
Well, Debit cards are linked to any of your assigned bank accounts, i.e. funds from these cards are automatically deducted from a bank account, most of the time a savings account. Say for example, you went shopping and used your debit card, any purchased amount will automatically be taken from your bank funds. It's convenient having to just carry just one card instead of two, but would be riskier since these cards are tied up to your bank account. Most, if not all, debit cards are given free after opening a bank account.
On the other hand, Prepaid/cash cards depend on how much you top up or load into the card. It's not interest-earning so it's just like having ready money in the form of a plastic card. Depending on the bank, they sometimes have some reloading fees each time you put money in it.
So if you have zero balance on these cards, you won't be able to purchase anything as well. Most, if not all, prepaid/cash cards have no minimum maintaining balance, and sometimes require a card or an annual fee. Check with the bank branch or website first before you decide to get any of these so that you will be more informed of the types and the fees involved.
The following blogs, including this one, will show you just some of the banks and companies offering different types of debit, prepaid and cash cards to help you decide on which card you think would be best suited for your lifestyle.
The first part will be the different debit cards issued by different banks. The next one will be for kids and teens. Then there will be two parts for prepaid and cash cards. Links will also be provided for some sections to give more information about the products.
And as days go by, I might add other segments involving finances and the like as well. So I hope you will find the following blogs informative and useful.
