No, a savings account and a credit card are separate products
Opening a savings account does not come with a credit card. A savings account is a place to store money you already have. A credit card is a tool to borrow money that you pay back later. Banks keep these as two different products because they work in completely different ways and serve different purposes.
Some banks may offer to let you open a credit card after you open a savings account, especially if you've been a customer for a while and have a good history with them. But this is an offer, not something that happens automatically. You have to say yes and go through a separate process to get one.
Key Takeaways
- A savings account holds your own money; a credit card lets you borrow money that you must repay with interest.
- Banks treat these as separate products and do not issue a credit card just because you have a savings account.
- Some banks offer credit cards to existing savings account holders, but you must request one and meet the bank's requirements.
- Having a savings account with a bank can sometimes make it easier to open a credit card with that same bank later.
Why banks keep savings accounts and credit cards separate
A savings account is low-risk for the bank. You put your money in, the bank holds it, and you take it out when you need it. The bank pays you a small amount of interest for letting them use your money.
A credit card is higher-risk. The bank is lending you money and hoping you'll pay it back with interest. Before they lend to you, they want to know whether you're likely to repay. This is why credit cards have a separate approval process that looks at your credit history, income, and other debts.
Because the two products involve different levels of risk, banks manage them separately. You can have a savings account without ever having a credit card, and many people do.
When a bank might offer you a credit card
After you've had a savings account with a bank for a few months, that bank may send you an offer for a credit card. They do this because they already know some things about you: whether you keep money in the account, whether you've had any problems with overdrafts, and how long you've been a customer.
This offer is still optional. You can ignore it, or you can accept it and fill out a credit card process. If you accept, the bank will check your credit report to see if you've borrowed money before and how you've handled it. They may also ask about your income.
Some banks make this easier for existing customers. For example, they might not require a credit check if you've been with them for a certain amount of time and have a clean account history. But the process is still separate from your savings account.
How having a savings account can help you get a credit card
If you're new to banking or rebuilding your credit, having a savings account with a bank for several months can work in your favor. It shows the bank that you can manage money responsibly. When you explore for a credit card later, the bank already has information about you.
Some banks also offer secured credit cards to people who are building credit. With a secured card, you put money into a savings account at the bank, and that money acts as a may provide. The bank lends you credit equal to that deposit. This is different from a regular credit card, but it's a way to build credit history if you're starting from scratch.
The key point is that the savings account itself doesn't give you the credit card. But it can make the bank more willing to give you one, and it can help you understand how to manage borrowed money responsibly.
What you need to do if you want a credit card
If your bank offers you a credit card, you'll need to decide whether you want it. Read the offer carefully. It will tell you the interest rate (called the APR), any annual fee, and what rewards or benefits come with the card.
If you want to accept the offer, you'll fill out a credit card process. This is usually a short form asking for your name, address, income, and permission to check your credit report. The bank will review this information and tell you within a few days whether you're approved.
If your bank hasn't offered you a card and you want one, you can ask. Call the customer service number on your savings account statement or visit a branch. They can tell you whether you're may be able to access and what the next steps are.
What happens if you don't want a credit card
You don't need a credit card to have a healthy banking relationship. Many people use only a savings account and a checking account for years. If you're not ready to borrow money, or if you prefer not to use credit, that's a valid choice.
Keep in mind that credit cards are one way to build a credit history, which affects your ability to borrow money for larger things like a car or a home later. But there are other ways to build credit too, such as becoming an authorized user on someone else's account or taking out a small loan and repaying it on time.
Frequently Asked Questions
Can I use my savings account to pay off a credit card?
Yes. Once you have a credit card, you can set up a payment from your savings account to pay your credit card bill. Many banks let you do this online or through their app. This is actually a good way to make sure you don't miss a payment.
What if I get a credit card offer but I'm not sure I want it?
You don't have to accept it. Credit card offers expire, but new ones usually come along later. If you're not ready, wait until you feel more comfortable with the idea of borrowing money and paying it back.
Will opening a credit card hurt my savings account?
No. Your savings account is separate. Opening a credit card might lower your credit score slightly because the bank checks your credit report, but it won't affect the money in your savings account or how that account works.
Do I need good credit to get a credit card from my bank?
Not always. If you've been a customer for a while with a clean account history, some banks will offer you a credit card even if you don't have much credit history. Secured credit cards are also available to people with no credit or poor credit.