Best Prepaid Debit Cards
If you can't get a checking account or a credit card, a prepaid debit card might be an option for you. These cards are easy to get because there isn't a credit check. Your credit history doesn't matter with a prepaid debit card because you're not buying items on credit. You're using your own money for purchases.
Here's how it works: You purchase a prepaid debit card online or at a retailer. Then you load cash onto the card and use the balance for purchases.
Prepaid debit cards are fine to use as a checking account replacement or as a budgeting tool. But just remember that these cards do not build credit.
If you decide to get a prepaid debit card, read the fine print several times. Some prepaid debit cards have lots of fees, including monthly fees, ATM withdrawal fees, loading fees, balance inquiry fees, transaction fees and even dormancy fees -- also called inactivity fees -- for not using your card for a period of time.
The prepaid debit card world can get a little confusing, so I want to make it easy for you. Here are four of the best prepaid debit cards. As a bonus, I've also reviewed Chime, which is an alternative to a prepaid debit card.
[Read: Best Starter Credit Cards.]
Up ahead:
-- Bluebird by American Express
-- Starbucks Rewards Visa Prepaid Card From Chase
-- Serve American Express Free Reloads
-- Chime
Bluebird by American Express
Best for those who don't want to pay fees
I like the Bluebird card because there are very few fees. I just don't think you should have to spend a lot of money to use your own money. And since you can get family accounts, Bluebird cards are also useful for giving your teens a little "plastic practice" by putting their allowance on the card.
Let's take a look at the fees and features.
Card purchase fee:
Free online; at Walmart, it can cost up to $5.
Activation fee:
None.
Monthly and annual fees:
None.
Adding funds (reloading):
You can use direct deposit, make an online debit card transfer, and add cash or use a debit card at Walmart , and it's free. But if you add cash at retailers other than Walmart, there could be a fee of up to $3.95.
Mobile deposits are free, but there's a 10-day waiting period before the funds are available. If you choose the Money in Minutes option, which literally means the funds will be available in minutes, you have to pay 1% or 5% of the check amount.
ATM withdrawals:
If you use ATMs in the MoneyPass network, there are no fees. But withdrawing funds outside of the network triggers a $2.50 ATM fee (ATM operator fees may also be applied).
You have the option to pick up cash via Bluebird2Walmart Money Transfer. For this, you pay $4 if you want to pick up $50. You pay $8 if you want to pick up between $50.01 and $1,000, and you pay $16 if you get between $1,001 and $2,500.
Other fees:
There are no fees for foreign transactions, replacement cards, inactivity and customer service calls.
Pros:
-- Online bill pay is free.
-- You can use several Bluebird cards to give allowances to kids, and you can transfer money between the accounts at no charge.
-- The card offers free withdrawals if you use a MoneyPass ATM.
-- Your card has a 4-digit CVV so you can use the card online.
Cons:
-- It doesn't offer cash back at retailers.
-- Fees for picking up cash at Walmart range from $4 to $16.
-- It costs up to $3.95 to reload your card at retailers other than Walmart.
-- There's a fee if you need access to a mobile deposit in less than 10 days.
[Read: Best Credit Cards for Bad Credit.]
Starbucks Rewards Visa Prepaid Card From Chase
Best for those who want rewards with their Starbucks coffee
The Starbucks Rewards Visa Prepaid Card has very few fees, which is only one reason to like this card. If you're a Starbucks Rewards member, you can also earn rewards. Let's take a closer look at some of the fees and features.
Card purchase fee:
None.
Activation fee:
None.
Monthly fee:
None.
Foreign transaction fees:
You pay 3% of the withdrawal amount after conversion to U.S. dollars.
Adding funds (reloading):
You can transfer funds from a Chase checking or savings account. From other financial institutions, you'll have to use a debit card. There are no fees.
ATM withdrawals:
You can't withdraw funds from an ATM or get cash back at a retailer.
Rewards:
You earn one star for every $10 you spend. There are many ways to earn bonus rewards.
Pros:
-- You can use the card everywhere Visa is accepted.
-- You earn 150 bonus stars the first time you use your Starbucks Rewards Visa Prepaid Card.
-- You earn one star for every $10 spent.
-- The Chase Mobile app lets you check your balance.
Cons:
-- ATM balance inquiry is not available.
-- There are foreign transaction fees.
-- You can't make ATM withdrawals.
[Read: Best Student Credit Cards.]
Serve American Express Free Reloads
Best for those who don't have direct deposit
I don't usually recommend prepaid debit cards with monthly fees, but I like this card for consumers who don't have access to direct deposit for their paychecks.
With some prepaid debit cards, loading the card at retailers can cost up to $4.95 for each transaction. With the Serve American Express Free Reloads prepaid card, you pay zero for cash reloads.
Here's a look at the fees and features.
Card purchase fee:
Free online; at retail locations, it can cost up to $3.95.
Activation fee:
None.
Monthly fees:
You pay $6.95 per month. There's no fee if you live in Texas, New York or Vermont. There's also no fee for residents of Arkansas, but only until your card is registered.
Foreign transaction fees:
You pay 2.7% after conversion to U.S. dollars.
Adding funds (reloading):
You pay zero for cash reloads at more than 45,000 locations, including Rite Aid, Walmart, CVS, participating 7-Elevens and Family Dollar.
Note that each cash load must be at least $20. And out-of-network reloads can cost up to $3.95. You can also add money from a bank account or use direct deposit.
With the Barcode Reload feature, you can add funds to your account at the checkout counter using your mobile phone. Your funds will be available soon after that.
ATM withdrawals:
If you use ATMs in the MoneyPass network, there are no fees. But withdrawing funds from a non-MoneyPass ATM comes with up to a $2.50 fee (plus any ATM operator fees that apply).
Pros:
-- Free reloads with a network of more than 45,000 locations.
-- Immediate access to cash deposits.
-- This prepaid card is free when you get it online.
Cons:
-- There's a monthly maintenance fee.
-- For depositing checks, you can use mobile check capture, but it can take up to 10 days to have access to the money.
-- There are foreign transaction fees.
-- You can only use the card where American Express is accepted.
FamZoo Prepaid Card
Best for parents who want to use the card for allowances
FamZoo is a fun tool you can use to teach your kids about budgeting. You can have four cards on a monthly plan, but you can add cards for a low fee. Having multiple cards lets you send allowances to your kids.
While there is a monthly fee, there are very few other fees.
Card purchase fee:
The first four cards are free. Additional cards are $3 each.
Activation fee:
None.
Monthly fee: The fee is $5.99 per month. You have the option to prepay for up to two years and get a discount. For example, if you prepay for 24 months, the monthly fee comes out to $2.50.
Foreign transaction fees:
None.
Adding funds (reloading):
There are no fees for reloading using direct deposit. If you reload your card at Green Dot or Mastercard reload agents, there's up to a $4.95 fee. There's a list of locations on the website.
ATM withdrawals:
No fees from FamZoo on ATM withdrawals or on purchases. You can also transfer money from one card to another.
Pros:
-- The card offers a great way to teach kids and teens about money.
-- It's easy to transfer allowances to kids.
-- Parents can limit access to the kids' cards, if needed.
-- There are no foreign transaction fees.
Cons:
-- There's a monthly fee.
-- There isn't an ATM network, so ATM operators' fees may apply when you withdraw cash from an ATM.
Chime
Best for those who want an alternative to a prepaid debit card
I decided to add Chime because I think it's a good option for the unbanked. It isn't a prepaid debit card. But it's not a typical bank account, either. Chime offers you a spending account, which is its version of a checking account offered by a traditional bank.
Card purchase fee:
None. You'll get a Visa debit card that you access via Chime's mobile app.
Activation fee:
None.
Monthly fee:
There are no monthly fees.
Foreign transaction fees:
None.
Adding funds (reloading):
There are no fees for reloading using direct deposit. You can also make mobile deposits with checks or add cash at retailers in the Reload @ the Register from Green Dot (Green Dot charges up to $4.95).
ATM withdrawals:
No fees on in-network ATM withdrawals or on purchases. You can also transfer money from one card to another.
Pros:
-- Offers the unbanked a chance to open a spending account and even a savings account.
-- After opening a Chime spending account, you're free to open a savings account -- and it pays interest.
-- There are more than 38,000 ATMs within the Chime network.
-- Unlike prepaid cards or banks, Chime has few fees.
Cons:
-- There aren't physical locations that you can go to. This card is best for those who prefer making financial transactions online.
-- You'll pay fees if you use out-of-network ATMs.
-- Not ideal for those who need to make cash deposits.
