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Prepaid debit cards can be a great option if you have not gotten the opportunity to get a regular bank account with a financial institution.
They can be very useful, and they can be a great way to introduce yourself into the financial world.
If getting into debt worries you, take a moment to analyze this type of debit card.
What is a prepaid debit card?
This type of debit card can usually be obtained at retail stores, and they are a great alternative to a regular debit card.
If you want to get a budgeting tool, this might be the card for you.
If you want to teach your children how to manage money before making them authorized users for your accounts, this card is a great option.
With this card, you need to deposit money before spending it.
This debit card will also not require you to get a credit check, so do not expect your credit score to be affected negatively when you start using this type of card.
What makes them different from a regular debit card?
For a regular debit card you need a bank account, which is not necessary for a prepaid debit card.
To use your prepaid debit card, you simply need to deposit money, and then you can start using it. In other words, you spend the money that you put in your checking account.
Best prepaid debit cards
- Bluebird by American Express
|Opening Fee||$5 in stores, $0 online|
Bluebird does not charge a monthly fee, but charges a $3.95 reload fee at every retailer other than Walmart.
The maximum balance is quite high, which gives you a lot of room to manage your money if you do not want to keep it as cash.
Withdrawing money comes with a $2.50 fee and $0 at MoneyPass ATMs.
- PayPal prepaid Mastercard
|Opening Fee||$4.95 in stores, $0 online|
This prepaid debit card is a great option if you are a PayPal user. It is easily integrated into your PayPal account.
You will have to pay a $4.95 monthly fee and a cash reload fee that goes up to $3.95.
Also, if you make foreign transactions, the fee is set at 4%.
Keep an eye on the places where you are shopping, since you might get rewards and special offers at certain places.
|Opening Fee||$0 the first 4 cards and $3 for each additional card|
If you have a family, this might be the best prepaid debit card you can get.
This card offers the chance to get up to 4 cards for free, and you can even get cards for your children.
The monthly fee is set at $5.99, but you can get a fee as low as $2.50 if you prepay for 24 months in advance.
You will pay a $4 – $6 cash reload fee, but there is no fee on purchases made outside the United States.
This card gives you the opportunity to teach your kids how to manage money and offers you different tools to do it.
You can control their spending, lock or unlock the cards when you want to, and you can even set recurring payments for them.