Ever heard of Personal Debit Card? Well, these are different from the regular debit cards issued by banks to the general customer. Banks classify customers into different categories based on their income and assets. High-net-worth individuals (HNIs) fall in the topmost category and hence many lenders offer them a range of premium—personalized and customized—banking services, including access to personal debit cards.
Banks issue such cards to wealthy and privileged patrons based on their membership in specific banking programs. For example, IDFC First Bank issues the IDFC First Visa Private Debit Card to members of its IDFC First Private programme. Axis Bank does too: It issues the Axis Bank Burgundy Debit Card only to Burgundy private members. Yes Bank has its own Yes Private Debit Card. It is issued to Ultra HNI members on the Premium World Elite platform of Mastercard.
Sachin Vasudev, director, Paisabazaar.com, said, “The difference between a regular debit card and a personal debit card is very similar to how an entry-level credit card differs from a premium credit card. The latter comes with a higher joining or annual May charge a fee but personal debit cards are generally free for lifetime use.”
These cards are associated with exclusive privileges such as higher cash withdrawal limit, complimentary access to airport lounges, insurance benefits, golf access, zero-touch loan products, doorstep banking and 24*7 concierge services. Note that these services depend on the lender you are linked with.
There are other advantages of personal debit cards. For example, they may charge a lower foreign exchange markup fee than regular cards.
Adil Shetty, CEO, BankBazaar.com, said, “Some banks waive off convenience and transaction charges for international transactions. Debit cards linked to HNI accounts may have a daily withdrawal limit. 2 lakh and domestic purchase limit 5 lakh or more. Some personal debit cards may offer even higher withdrawal and purchase limits 10-15 lakhs. Often, banks do not levy an annual fee on these cards. However, lenders may have very high requirements from customers in terms of investments or holdings.”
Vasudev said, “HNIs can have both regular and private debit cards. Most banks offer premium banking debit cards to those who have a high balance in their savings account or based on their total relationship value (TRV) with the bank (including liability and investment relationships). However, some banks may require you to open a premium savings account. For example, Axis Burgundy Private Debit Card is offered to account holders who maintain a minimum TRV 5 crores up to 12 months from the inception of the account/relationship. Burgundy Personal Savings Account is mandatory to join the Burgundy Personal Banking program.”
catch ’em all business News, market news, breaking news events and breaking news Update on Live Mint. download mint news app To get daily market updates.