If you think prepaid debit cards have no value, you might want to reassess your theory and catch up with this smart budgeting tool. Prepaid cards can save you from overspending and help you budget without much hassle. You also won’t have to worry much about transaction fraud or losing millions from the account in case of theft. That’s not all. A prepaid debit card can come in handy in many other situations too.
Easier money management
Prepaid debit cards are an effective tool to curb unnecessary expenses. If you cannot help but go a little crazy on your retail therapy spree, this card might be the perfect solution. Once you load your card with a certain amount, you know without a doubt that there’s no extra spending you can indulge in. Since the card encourages people to manage their money well, many have opted for it as a go-to payment method.
Help with business budgeting
If you’re bad at tracking how much you spend or often fail to meet business expenses without spending out of pocket, prepaid debit cards can help organize your finances. Getting a prepaid card for business expenses means you no longer have to worry about either spending your personal cash or going over budget with business spending. At the same time, you can communally use the card for your startup without having to remind the team members to stay within spending limits.
Reliable travel buddy
One of the top reasons to invest in a prepaid debit card is that it makes for a nifty travel companion. Want to spend a weekend out of town partaking in adventures? Headed on a long vacation to another country? A prepaid debit card is an answer to your money-carrying concerns. Most prepaid or reloaded cards are accepted in various countries at payment points and ATMs. Some even offer payment options in local currency and USD.
No account necessary
Another great benefit of getting a prepaid debit card is that you might not need to sign up with a credit union or open a bank account. This is especially useful for people who don’t want to go through the hassle of managing an additional account or already have to take care of a checking account. Since there’s no bank account, prepaid cards provide the convenience of paying in plastic without bothering about the bank’s processing fees. Moreover, you might be surprised to find out that transactions via certain prepaid cards cost less than bank debit cards!
Besides providing the above benefits, prepaid cards are a fantastic source of rewards and rebates. Some even let you convert your rewards to cash, further contributing to your savings. But it’s crucial to choose the right card. Some top prepaid debit card options you might want to look at are:
Netspend® Visa® Prepaid Debit Card
The Netspend® Visa® Prepaid Card works like any other traditional card, except it isn’t linked to a bank account. If a poor credit history is in your way of getting a checking account, this might be the solution to your problems. By getting a Netspend® Visa® or Mastercard® prepaid card, you can access all banking features in the same place without hassle. In addition, you can load up $1,000 or more cyclically on the card without paying a monthly fee.
Bluebird® American Express® Prepaid Debit
With a monthly fee of $0 and free withdrawals from in-network ATMs, the Bluebird® card is among the sought-after prepaid debit cards. The cash loading limit for temporary cards starts from $1 and goes up to $500; however, when your card is activated, your reload limits range from $20-$1,999. In addition to these benefits, American Express® users can reload their cards a couple of days earlier than the originally scheduled date.
Greenlight Debit Card
With no ATM fee or reload fee, the Greenlight Debit Card is a great choice for parents looking to hand over the card to their kids. The card even comes with its own range of money management lessons to help children learn about responsible spending and saving behavior. However, you will have to shell out some money to pay the monthly fees, and it can’t be reloaded with cash.
Many banks offer cash cards as an alternative to debit cards. Cash cards can be used at ATMs to withdraw money, but unlike other prepaid debit cards, you won’t be able to make payments in most cases.