In a Nutshell: The best prepaid card options include cards that offer rewards, sky-high interest rates on your savings and low fees.
Whether you can’t qualify for a credit card or you simply don’t want one, a prepaid debit card can help you manage your money without sacrificing the convenience that plastic has to offer. The best prepaid cards offer valuable benefits and low fees. Here are our top picks.
- Best for cash back: American Express Serve® Cash Back
- Best for low fees: Bluebird® by American Express®
- Best for free reloads: Chase Liquid® Card
- Best for online shopping: Movo® Digital Prepaid Visa® Card
- Best for saving money: Mango Prepaid Mastercard®
Best for online shopping: Movo® Digital Prepaid Visa® Card
Here’s why: The Movo® Digital Prepaid Visa® Card helps keep your card information secure when shopping online by allowing you to create temporary digital cards on your phone to use anywhere Visa is accepted.
You’ll also get a physical card you can use for in-store shopping. The card doesn’t have a monthly fee, and you can add money to your card for free via direct deposit or from your bank account. Movo doesn’t charge for cash reloads at retail locations, but keep in mind that the retailer may charge a fee of its own.
If you need cash, you can withdraw it for free at 6,000 ATMs in the VisaPlus Alliance network. As with the other cards on this list, you should watch out for the $2 fee to use other ATMs, plus any ATM-operator fees. An interesting perk of this particular card is that Movo can act as an intermediary to transfer your bitcoin or bitcoin cash to someone else, though you’ll have to pay a fee.
Prepaid debit cards can be great budgeting tools, but it’s not always easy to find a card that’s light on fees and heavy on features.
How we picked these cards
Prepaid debit cards can be great budgeting tools, but it’s not always easy to find a card that’s light on fees and heavy on features. To compile our list, we considered several factors, including fees, extra benefits, free reload options and ways to get money back.
For example, while the American Express Serve® Cash Back isn’t the only cash back prepaid card on the market, it doesn’t restrict where you can earn cash back or how much.
We also tried to highlight cards with unique benefits, including a high-rate savings account and the ability to create virtual card numbers for online shopping.
How to make the most of prepaid debit cards
Prepaid debit cards don’t give you the opportunity to build credit as credit cards do, but they can help you budget your money. Since you can only spend what you load onto the card, you can set your budget for the week or month.
If you’re planning on adding subaccounts for family members, some prepaid cards allow you to set spending limits to better manage their spending as well.
Editorial Note: Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our marketing partners don’t review, approve or endorse our editorial content. It’s accurate to the best of our knowledge when it’s posted.
Source: Credit Karma