Prepaid debit cards have of advantages, but the fees can total up to a lot of cash quick. Photo Credit: MoneyBlogNewz/Flickr.com/CC-BY
Prepaid debit cards have become quite the popular item for people who don’t want to deal with banks, but the fees can add up to a lot of cash, quick. There are some benefits to using prepaid debit cards, but consumers should comparison shop to find the best one.
Avoid being drained of cash quick by checking prepaid card fees
Prepaid debit cards are not a bad idea. A person purchases a card and deposits money into an account tied to the card, just like a debit card for a checking account through a bank. They are better than credit cards because they use real money and don’t create debt. However, the fees can add up to a lot of cash, and quick. The first fee to look at is the monthly maintenance fee. The standard seems to be about $5 or less. For instance, GreenDot is a prominent prepaid debit card line. A GreenDot card carries a $4.95 per month fee, but it gets waived when the customer makes more than 30 purchases a month or deposits more than $1,000 per month. Paying $5 a month just to have the account adds up to a pretty penny and a lot of instant cash over a year.
Beware wolves in pop clothing
Consumers should always be cautious when it comes to sponsored products. Some celebrity or sport endorsed products are of high quality. However, marketing firms know that celebrities lend instant credibility to a product regardless of quality and that some people will to pay extra for products backed by big names. Also, look for withdrawal and ATM fees. Some prepaid cards only charge for out-of-network ATM usage, so consumers should check to see whether that network is only one ATM in Jackson, Mississippi.
The benefits
One benefit of having a prepaid debit card is that the fees don’t change like checking accounts through major banks. Prepaid cards can also be reloaded with money just about anywhere, and that mobility is handy. Some people don’t like dealing with banks, and given the number of banking scandals in recent memory, that is completely understandable.
