Are Prepaid Cards Cheaper Than a Checking Account?
| October 20, 2009 |
Generally geared to those looking for an alternative to a checking account; it now looks like using a prepaid card could be cheaper than using a debit card. This is according to an economic report for the Network Branded Prepaid Card Association. From this report, it is said that consumers who use a prepaid card can look to spend thirty to seventy percent less in fees than those having a low balance checking account with debit cards.
The study which can be viewed here analyzed a variety of payment options available to individuals, along with their costs and benefits. Results concluded that consumers with checking accounts can expect to pay around $200 to $350 compared to around $110 to $210 associated with using a prepaid card.
So does this mean that prepaid cards are all around cheaper than having a checking account or debit card? Not exactly. When it comes to the fees that are encountered with having a checking account such as overdraft fees, out-of-network ATM withdrawals and in some instances money transfers, prepaid cards seem to be the consumers best choice. On the other hand, if the things listed above is something that you do not use, than the monthly, loading and usage fees associated with almost every prepaid card will be far more expensive.
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