Skip to main content

Product Review: IDBI Magic Card for Salary Accounts



IDBI Bank, which had earlier waived all charges for its account holders, has now launched a debit-cum-credit card named 'Magic Card', which can be obtained only by its salary account holders.

Essentially a debit card, it functions as an overdraft facility, allowing the user to spend more than the balance in his/ her account up to a predetermined credit limit.

FEATURES

According to the bank, the credit limit is a multiple of an individual's salary which can go up to three times in accordance with the eligibility. For instance, if the account holder draws a salary of . 50,000, he can get an overdraft credit limit of . 50,000. So if the credit limit is . 50,000, the account holder can spend the bank balance plus . 50,000 credit amount. The daily withdrawal limit has been fixed at. 50,000. The salary received by you will be used by the bank to adjust the credit availed. Like credit cards, you can earn reward points for using the card to make purchases. It also comes with an in-built insurance cover for lost, stolen or counterfeit card, which will come to your aid in case your card is misused by fraudsters.

CHARGES

The bank levies a charge of 14.75% per annum for PSU staffers and 15.75% for privatesector employees on the credit amount used by the card holder, while the processing fee is nil. Interest is calculated on the overdraft amount on a daily basis, but charged on a monthly basis. The card does not entail a cash advance charge that other credit cards impose for cash withdrawal at ATMs. Also, it has done away with third-party ATM fee for using the card at other banks' ATM more than five transactions a month. While the interest rate levied is lower than what credit cards carry – up to 39-44% per annum – it is applicable from the day you use the credit limit unlike credit cards which offer a 30-45 day interest-free period. This USP of credit cards has made them popular and in this area, credit cards score over Magic Card. In this context, it is comparable to a personal loan rather than a credit card.

UPSIDE

Apart from the convenience the card offers, lower charges, when compared to other credit cards, constitute a key advantage. Waiver of cash withdrawal charges is also a plus point.

DOWNSIDE

While all credit cards offer an interest-free period of 30-45 days during which the amount used can be repaid, this card charges interest for the entire period of credit use.
 

-----------------------------------------------------------------

 

Also, know how to buy mutual funds online:

 

Invest in DSP BlackRock Mutual Funds Online

 

Invest in Reliance Mutual Funds Online

 

Invest in HDFC Mutual Funds Online

 

Invest in Sundaram Mutual Funds Online

 

Invest in Birla Sunlife Mutual Funds Online

 

Invest in UTI Mutual Funds Online

  

Invest in SBI Mutual Funds Online

 

Invest in Edelweiss Mutual Funds Online

 

Invest in IDFC Mutual Funds Online

 

Popular posts from this blog

Group Health Insurance

Buy Group Health Insurance Online   For Human Resources, the biggest challenge today is to decide whether medical benefits should be offered to employees or not, what type of plans should be offered, what will be the cost and how will the cost be split between employees and employer. Well, most of these are subjective and would depend on a lot of factors including company size, average employee salary, etc. However, this article will give you a fair idea on how you should go about deciding these factors: 1. Why offer group health insurance benefit to employees : Studies have proved that retention rates among employers offering GHI are much higher than the ones who are not offering. Moreover, the cost of providing this benefit as a percentage of salary is very low as compared to the perceived value. As an example, say if average salary of an employee in your organization is 4 LPA. If you decide to offer a health insurance benefit to him for a Sum insured of ...
Read more

ICICI Prudential Dynamic Plan Invest Online

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   ICICI Prudential Dynamic Plan             Invest Online This fund does remarkably well during falling markets, but fails to show the same prowess during a rising market. The fund sticks to its mandate to adapt to the dynamic nature of the market by shuttling between debt and equity. It takes aggressive asset calls in equity when the market surges by investing in quality mid-cap stocks. At the same time, it adopts a defensive strategy by investing in debt and cash when markets get overvalued, making it a good long-term choice.     For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call     Leave a missed Call on 94 8300 8300   Leave your comment with mail ID and we will ...
Read more

Commercial Paper (CP)

Invest Mutual Funds Online Download Mutual Fund Application Forms Commercial Paper (CP): These are issued by corporate entities in denominations of Rs.2.5mn and usually have a maturity of 90 days. CPs can also be issued for maturity periods of 180 and one year but the most active market is for 90 day CPs.   Two key regulations govern the issuance of CPs-firstly, CPs have to be compulsorily rated by a recognized credit rating agency and only those companies can issue CPs which have a short term rating of at least P1. Secondly, funds raised through CPs do not represent fresh borrowings for the corporate issuer but merely substitute a part of the banking limits available to it. Hence, a company issues CPs almost always to save on interest costs ie it will issue CPs only when the environment is such that CP issuance will be at rates lower than the rate at which it borrows money from its banking consortium. ----------------------...
Read more

Lump Sum or SIP?

Invest Mutual Fund Online     You have a lump sum in hand and you wish to invest in equity funds. However, you have heard a lot of talk about investing in equity funds through Systematic Investment Plans (SIPs) because they help average costs, ensure you do not ill-time the market, and help you invest in small sums, besides giving you many other advantages. So, should you invest the money you have in hand in one go, or let it remain in your bank account and then do an SIP? There is no harm in investing a lump sum amount. For all you know, compounding, over the long term, could work better with lump sum. However, make sure you fulfill all of these three criteria if you want to invest in one go. Else, SIP is the way to go. #1: You invest for the long term According to past data, ideally, if you have a time frame of 12 years or more, you can consider lump sum investing (provided you satisfy the other two conditions that follow). So, what is the sanctity behind 12 years? Is it because only...
Read more

Why credit history is critical?

Will you need a loan to buy a car or a house? Do you know why some people get their loans sanctioned quickly without any hassle, whereas others find that their approval is delayed or their application is rejected? If you want a loan, you will need to work to build a solid credit history because this can have a bearing on the ease with which you get loans. Read on to learn more about what is a credit history and how to build a good credit score. What is a credit history? Your credit history is a way of tracking your credit behaviour and habits — basically it shows how disciplined and regular you are when it comes to repaying your dues on loans that you have taken. It will show a complete record of your past borrowing and repayment record including details about any late payments or if you have defaulted on a loan. This track record is readily accessible to lenders and is used by them to when reviewing your loan application. Borrowers who have historically had a bad record of managing...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now