Do you guys remember my article about tax favors and benefits offered when using banking applications on smart phones? Today’s post is pretty much related to that post, while this one focuses on ‘debit cards’.
It might differ from country to country, but in Korea, debit cards are being widely used by many college students as well as people with low-credit ratings. This is because those people do not have high credit ratings and they are not qualified to hold their own credit cards. Most of the credit card companies carry out a fastidious credit assessment to examine a credit card applicant’s personal details such as occupation, disposable income, and any other financial information.
Compared to credit cards, debit cards encourage card holders to do rational consumptions. This is because a debit card holder is only allowed to spend the amount up to his own balance, not being able to overspend. That is why lots of individuals, amid economic depressions, are more likely to make payments by their debit cards, so as not to make over-spending by credit cards. Keeping this consumption trend in mind, many banks introduce benefits and favors for their customers using debit cards. Moreover, financial authorities and institutions are propelling an income tax policy favorable to debit card holders.
Let’s find out some of the benefits offered by banks. Most banks are providing various benefits which are specifically targeting a certain group of customers. For example, banks provide college students with discounts on exam fees, movie tickets, books, and meals at popular restaurants. Banks, by doing so, target the young who are the potential customers and debit card holders. Actually, there are countless numbers of debit cards issued by different banks. And, of course, benefits are all different, which makes you look for the most suitable one for your own needs. I recommend you to visit any bank near your place and have a quick consultation. Sometimes, banks offer exemption of transaction costs as well as favorable interest rate. Why don’t you just visit and knock the closest bank?
One of the personnel from a major bank in Korea says, “With lots of efforts promoting debit cards, a debit card issuance is growing six times as fast as a credit card issuance. The amount of transactions by debit cards is expected to reach KRW 100 trillion in the near future.” I would like to wrap up this post with another tip for you. Using a debit card is very beneficial for tax refund at the end of year. Financial authorities decided to lower the rate of income tax deduction from 20 percent to 15 percent with regard to transactions made by credit cards. However, if you make transactions by debit cards, you will be granted 30 percent of income tax deduction. Isn’t it a beneficial enough for you to use your debit cards for transactions?