Prepaid debit cards from Bluebird by American Express, American Express Serve, Walmart MoneyCard, FamZoo prepaid debit card and Brink’s Money Prepaid Mastercard were launched as alternatives to cheques and debit cards for people without bank accounts. Now, with increased usage, these cards have stepped into the mainstream.
Prepaid cards are an excellent choice if you have been unsuccessful in getting a regular bank account. These are useful if you plan to restrict your spending habits and use them as a budgeting tool. Prepaid cards work like debit cards. You need to load it with cash, you can use it for online purchases, and it doesn’t require a bank account.
Many prepaid card providers offer almost the same features just like chequing accounts, such as online bill payments, mobile check deposits, and direct deposits and it excludes overdraft fees. They also don’t charge any type of reloading fees and are easy to use.
Prepaid debit cards introduced this year
Various big companies like Mastercard, American Express, and Visa are offering prepaid cards. If you are looking for options, here are some of the best-prepaid debit cards for this year from Bluebird by American Express, American Express Serve, Walmart MoneyCard, FamZoo Prepaid Debit Card and Brink’s Money Prepaid Mastercard.
Bluebird charges comparatively fewer fees than most prepaid debit cards, which makes this card a great choice. You can also create sub-accounts for family members and they will receive their card tied to the main account.
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Pros |
Cons |
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You can receive an early paycheck with its direct deposit. |
No Rewards |
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Free ATM withdrawals at more than 30,000 MoneyPass ATMs |
Mobile cheque deposits can take up to 10 days |
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No monthly fees or foreign transaction fees |
This card can’t grow your credit score thus, limiting its utility. |
This card can be helpful if you reload your money frequently. If you don’t have a chequing account, cash reloads might come in handy. American Express Serve provides free reloads, and you can create free sub-accounts for your family members.
This card has a large reload network with over 45,000 locations and includes CVS, Dollar General, Family Dollar, Rite Aid, Walmart, 7-Eleven, and others.
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Pros |
Cons |
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No reload fees |
Monthly fees in most states |
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Free withdrawals at 30,000 ATMs |
No rewards |
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Ability to create four free sub-accounts |
Mobile cheque deposit can take up to 10 days |
This card is technically a loyalty card but it can be an alternative to primary debit cards for people who regularly shop at Walmart. It rewards shoppers with cashback, savings and free direct deposits.
Moreover, if you deposit $1,000 or more, the monthly fees can be waived.
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Pros |
Cons |
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Free cash reloads through Walmart MoneyCard app, direct deposit, mobile cheque deposit, and bank transfer |
All ATM withdrawals will incur a $2.50 fee |
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Easy online bill payments |
Cashback is capped at $75 per year |
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You can get cards for family members ages 13 and up |
3% fee on purchases made outside the U.S. |
If you are looking for a prepaid card that will help you teach finances to teenagers and children, this is the best option. This card is Federal Deposit Insurance Corporation (FDIC)-insured and helps the parents to teach their kids about spending habits. FamZoo provides various perks such as account controlling tools, low fees and even a free trial period.
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Pros |
Cons |
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Free Trial |
No free plan, Up to a $5.99 monthly fee |
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No card opening fee for the first four cards |
Out-of-network ATM fees |
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No fee on purchases made outside the U.S. |
$3 card opening fee after your first four cards |
Brink’s Money Prepaid Mastercard
This card is the best choice if you want to save money. Brink’s Money Prepaid Mastercard provides an opportunity to cut fees in half if you deposit $500 per month in your account. Moreover, you’ll be eligible for a linked savings account with a 5.00% annual percentage yield (APY).
It is a good option for anyone who wants to get money quickly and manage funds anywhere using a smartphone.
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Pros |
Cons |
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Excellent savings account option |
$2.50 out-of-network ATM fee |
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The Pay-as-you-go plan provides flexibility with individual purchase fees instead of paying monthly fees. |
Doesn’t build credit |
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More than 130,000 reload locations. |
You are automatically enrolled on a pay-as-you-go plan. You need to request to switch to a different arrangement. |
Conclusion
While there are many prepaid card options available in the market, these cards outperform others and help consumers to attain financial services without any hassle. If you plan to invest in a prepaid card you must read its reviews and ratings before you initiate a purchase. BankQuality is a premium platform that provides reviews about financial institutions from all around the world.