Banks use different tools to motivate customers to use different products. In particular, they offer cashback cards and accrue interest on the balance. In some cases, these offers overlap within one product, in others they are the only bonus.
If you have to choose, it is important to evaluate the benefits of each option in advance. Let's define the terms and tell you what is more profitable: cards with interest on the balance or cashback.
What is the balance interest?
Interest on the balance is a type of reward for keeping money on debit and credit cards. The idea is that their owner receives a certain percentage of the amounts that he leaves in the account. The bank sets a fixed or floating rate, motivating the client to keep the maximum amount as long as possible.
This is beneficial for both the card issuer and the cardholder. The bank turkey mobile database receives money at its disposal, and its client receives interest on the balance of the account without the additional conditions inherent in deposits and other savings products.
How is interest calculated on the balance?
Each financial institution forms its own conditions. Usually, interest accrual on the balance occurs regularly. However, there are nuances not only in the interest rate, but also in the frequency of its application. Also, issuers impose different conditions on the movement of funds.
How often does the accrual occur:
Important: This does not necessarily mean that money actually arrives on the card or account. The client may be credited with interest every day, but the funds may be transferred once a month. The terms are specified in contracts and additional agreements. If necessary, check with the support service.