How to Transfer Money from Credit Card to Savings Bank Account

How to Transfer Money from Credit Card to Savings Bank Account

Jun 18, 2024

15 Mins

Credit cards are a convenient payment instrument that allows customers to purchase products without having to pay upfront. They provide the ease of carrying cash and offer the option to convert lump sum payments into Equated Monthly Instalments (EMIs) for big-budget purchases.

In addition to purchasing products, credit cards also allow transferring funds to a savings account. While there are different ways to transfer money from a credit card to a savings account, it is important to note that these methods may involve high fees.

One method of transferring money from a credit card to a savings account is using MoneyGram. This service allows you to send money across the globe to accounts of over 400 banks. The process involves selecting the receiver, country, and entering the amount to be transferred. The method of payment is chosen as 'Credit Card', and the required information about the sender and recipient's bank account is provided. The money is securely transferred to the bank account.

Another option for transferring funds is through Western Union. This process also requires registering with Western Union, selecting the country, amount, and method of delivery. The bank account information of the receiver is entered, and the payment is made using the credit card. A confirmation with a tracking number is received, and the money is transferred to the recipient's account.

Paytm and other e-wallet services like FreeCharge and MobiKwik also offer the option to transfer money from a credit card to a bank account. After registering with Paytm, the money can be transferred from the credit card to the wallet. Then, in the Paytm app, the option 'Send money to Bank' is selected, and the required information, such as the amount, account number, and IFSC, is entered. Clicking on 'Send' transfers the money to the bank account.

Online transferring funds from a credit card to other bank accounts is another option. Services like PayDeck allow payment to any other bank account. Registration and verification are required, and payment is made using the credit card.

Net banking services provided by respective banks also allow direct transfer from a credit card to a bank account. By logging in to the credit card account via net banking, the transfer money option is selected, and the transfer amount is entered. All the required details are mentioned, and the transaction is completed.

ATM cash facilities can also be used to transfer money from a credit card to a bank account. This involves using the credit card to withdraw money from an ATM and depositing it at one of your bank's branches.

It is important to note that using a credit card to generate credit to a bank account is not the intended use of the card. Defaulting on credit card dues after the statement is generated can result in fines and additional costs. Therefore, it is advisable to consider the interest rates and fees, credit limit and available balance, and security precautions before transferring money from a credit card to a bank account.

While there are restrictions and fees involved in the process, transferring money from a credit card to a bank account proves to be a cheaper alternative to personal loans or cash withdrawals with high-interest rates and charges. It is essential to be aware of the regulatory issues and precautions involved in the fund transfer process.

Credit cards are a convenient payment instrument that allows customers to purchase products without having to pay upfront. They provide the ease of carrying cash and offer the option to convert lump sum payments into Equated Monthly Instalments (EMIs) for big-budget purchases.

In addition to purchasing products, credit cards also allow transferring funds to a savings account. While there are different ways to transfer money from a credit card to a savings account, it is important to note that these methods may involve high fees.

One method of transferring money from a credit card to a savings account is using MoneyGram. This service allows you to send money across the globe to accounts of over 400 banks. The process involves selecting the receiver, country, and entering the amount to be transferred. The method of payment is chosen as 'Credit Card', and the required information about the sender and recipient's bank account is provided. The money is securely transferred to the bank account.

Another option for transferring funds is through Western Union. This process also requires registering with Western Union, selecting the country, amount, and method of delivery. The bank account information of the receiver is entered, and the payment is made using the credit card. A confirmation with a tracking number is received, and the money is transferred to the recipient's account.

Paytm and other e-wallet services like FreeCharge and MobiKwik also offer the option to transfer money from a credit card to a bank account. After registering with Paytm, the money can be transferred from the credit card to the wallet. Then, in the Paytm app, the option 'Send money to Bank' is selected, and the required information, such as the amount, account number, and IFSC, is entered. Clicking on 'Send' transfers the money to the bank account.

Online transferring funds from a credit card to other bank accounts is another option. Services like PayDeck allow payment to any other bank account. Registration and verification are required, and payment is made using the credit card.

Net banking services provided by respective banks also allow direct transfer from a credit card to a bank account. By logging in to the credit card account via net banking, the transfer money option is selected, and the transfer amount is entered. All the required details are mentioned, and the transaction is completed.

ATM cash facilities can also be used to transfer money from a credit card to a bank account. This involves using the credit card to withdraw money from an ATM and depositing it at one of your bank's branches.

It is important to note that using a credit card to generate credit to a bank account is not the intended use of the card. Defaulting on credit card dues after the statement is generated can result in fines and additional costs. Therefore, it is advisable to consider the interest rates and fees, credit limit and available balance, and security precautions before transferring money from a credit card to a bank account.

While there are restrictions and fees involved in the process, transferring money from a credit card to a bank account proves to be a cheaper alternative to personal loans or cash withdrawals with high-interest rates and charges. It is essential to be aware of the regulatory issues and precautions involved in the fund transfer process.

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