Prepaid debit cards are an alternative to credit cards and traditional debit cards. They let you spend up to the amount of money you’ve loaded onto your card and can be reloaded repeatedly. The prepaid debit card market is fragmented, meaning no single company carries enough market share to dominate it. But the market is growing, with Allied Marketing Research estimating a compound annual growth rate of 19.5% from 2023 through 2032. Prepaid debit cards can be an excellent choice if you’ve been unable to get a regular bank account with a conventional debit card. You might also consider one if you’re worried about going into debt with a credit card. Prepaid cards can also be useful in combination with traditional debit and credit cards as a budgeting tool. After all, you can only spend what’s loaded onto the card. If any one of these reasons resonates with you, here are the best prepaid debit cards to consider. Best Prepaid Debit Cards Best Prepaid Debit Cards Final Verdict Compare the Best Prepaid Debit Cards Pros and Cons Alternatives FAQs Why We Chose It Bluebird by American Express offers an impressive combination of savings, convenience, and benefits for cardholders. Users can expect fewer fees, including no monthly fee, an abundance of free ATM access, plus no-cost extras that they can depend on for secure card purchases, attractive offers, and more. Pros and Cons Pros No fee for monthly maintenance, activation, online card purchases, and more Provides several perks, including purchase protection, roadside assistance, and Amex Offers Access to more than 30,000 fee-free ATMs Cash reloads at Family Dollar locations are free, as are direct deposit, debit card transfers to other Bluebird account holders, and mobile check deposits Cons No rewards Cash reloads at other retailers may incur a fee Mobile check deposits take 10 days unless you pay a fee Overview Bluebird charges fewer fees than most prepaid debit cards, making it a solid choice if you’re on a tight budget or simply don’t want to pay for debit card access. You can create sub-accounts for family members. They’ll get their own card tied to the main account. Why We Chose It American Express Serve FREE Reloads is an ideal card for those who use a prepaid debit card frequently and must reload more often. Cardholders have a broad choice of locations where they can add money at no cost. Plus, access to no-fee ATMs is a bonus that fits right in with the card's fee-free refills. Pros and Cons Pros No fee when you load cash onto your card at more than 45,000 Walmart, 7-Eleven, CVS, Rite Aid, Dollar General, and Family Dollar locations Other reload options include direct deposit and bank account transfers Access to more than 30,000 fee-free ATMs Eligible purchases get purchase protection* Cons There’s a $6.95 monthly fee (no fee in New York, Texas, or Vermont) Mobile check deposits take 10 days unless you pay a fee No rewards or other major benefits Overview Cash reloads may be your best option if you don’t have a checking account, making the Amex Serve FREE Reloads a top choice. You can also create free sub-accounts for family members. *Eligibility and benefit level varies by card. Terms, conditions, and limitations apply.Please visit americanexpress.com/benefitsguide for more details.Underwritten by AMEX Assurance Company. Why We Chose It If Walmart is a preferred shopping destination, then the Walmart MoneyCard may be the smart choice for a prepaid debit card. The multi-tiered cash-back options mean money in your pocket. And the free reloads don't just save you money on card refills. Load enough every month and they can eliminate the monthly fee. Pros and Cons Pros Earn 3% cash back at Walmart.com, 2% back at Walmart fuel stations, and 1% back at Walmart stores Earn 2% annual interest on a linked savings account No monthly fee if you load $500 or more each month Free cash reloads via the Walmart MoneyCard App, direct deposit, mobile check deposit, and bank transfer Overdraft protection up to $200 with opt-in and eligible direct deposit Cons Cashback is capped at $75 per year The standard monthly fee is $5.94 if you don’t load $500 or more each month All ATM withdrawals will incur a $2.50 fee Mobile check deposit may take up to 5 days Overview The Walmart MoneyCard is one of the few reloadable cards that offers rewards, although there is an annual cap. Even if you can’t get the monthly fee waived, the annual rewards are enough to pay for it. The major downside is the fees you’ll have to pay if you need to use ATMs to access your cash. Why We Chose It The American Express Serve Cash Back serves up unlimited 1% cash back rewards whenever you use it for your purchases. Compared to other prepaid debit cards that include a rewards benefit, this card's cash-back uncapped potential stands apart. Plus, the fee-free ATMs help you keep more of your money. Pros and Cons Pros Offers unlimited 1% cash back on all purchases Access to more than 30,000 fee-free ATMs Eligible purchases will receive purchase protection* Cons You’ll pay a $7.95 monthly fee (no fee in New York, Texas, or Vermont) Cash reloads cost up to $3.95 Mobile check deposits take 10 days unless you want to pay a fee Overview Unlimited 1% cash back isn’t too impressive among credit cards, but it’s the gold standard for prepaid debit cards. The American Express Serve Cash Back charges a $7.95 monthly fee, but you can make up for it if you spend at least $795 per month with the card. *Eligibility and benefit level varies by card. Terms, conditions, and limitations apply.Please visit americanexpress.com/benefitsguide for more details.Underwritten by AMEX Assurance Company. Why We Chose It We chose FamZoo as the best card for tweens and teens because parents, children, and money education are at the core of its offering. Parents can get four prepaid cards at no charge, activate automatic transfers, and control card use to encourage smart spending and saving habits. Pros and Cons Pros You can order up to four prepaid cards for free and set up automatic recurring transfers (additional cards cost $3 apiece) Parents can lock and unlock cards and encourage kids to save with interest paid from the parent’s account You can also tie transfers to allowances and chores or even create a non-monetary rewards system Cons You’ll pay a $5.99 monthly fee, though you can reduce it if you pay in advance There is a $4.95 fee to load cash onto the card at participating retail locations No fee-free ATMs Overview The FamZoo Prepaid Debit Card isn’t the only prepaid card that offers sub-accounts. But it provides a whole suite of features that can help parents teach their children how to manage their money. See more options with our picks for the best debit cards for teens and kids. When it comes to prepaid debit cards, Bluebird by American Express is our choice for the best overall category. Not only does it have no monthly fee and no-cost access to over 30,000 ATMs. It also offers cardholders the added complimentary benefits of purchase protection and roadside assistance. What else is free? Direct deposits, debit card transfers to other Bluebird account holders, and mobile check deposits. And while it may not include a rewards program, the absence of various fees for activation, maintenance, and online purchases can more than make up for it. Plus, family members can enjoy the freedom of having their own cards with sub-accounts that link to the primary account. We think that Bluebird can be a smart choice for those searching for a straightforward, convenient prepaid debit card option. In the News: Prepaid debit cards can be used for many things. In 2023 they’re being more widely adopted for a few specific situations, such as a way for employers to pay their employees or for benefit programs like government assistance or healthcare spending accounts. Demand isn’t as strong for regular prepaid debit cards that you might open on your own, however. That could be because more people are getting fed up with the high fees these cards charge—which leaves more opportunity for lower-cost prepaid debit cards going forward. Pros No credit check Limits your spending Safer than carrying cash Can be used as a banking alternative Cons Lots of fees Doesn’t earn interest Doesn’t help build credit Make sure your prepaid debit card comes from a bank that’s insured by the Federal Deposit Insurance Corporation (FDIC) and that you register your account. That way you’ll receive your money back if the bank ever fails. Prepaid debit cards are popular for a lot of reasons, but they’re not your only option. Here are a few other things to consider if you’re trying to see whether prepaid debit cards are actually right for you or not: Anyone who wants a bank account in the U.S. can get one, even undocumented immigrants. You may have a more limited range of options, but it is possible if you want one. A prepaid debit card is like a traditional debit card except that you load it with funds in order to use it. (A traditional debit card is funded by the checking account that it's linked to.) You can use a prepaid debit card to make purchases online and in person, wherever the card is accepted. Prepaid cards are typically issued by the same payment networks that issue regular debit and credit cards, including Visa, Mastercard, American Express, and Discover. People who are unbanked or underbanked, either by choice or circ*mstance, can benefit from a prepaid debit card. Prepaid debit card issuers don’t check your banking history when you apply. A Social Security number is not necessarily a requirement. If you need assistance with budgeting, a prepaid debit card can help by limiting how much you spend to the funds loaded to it. Finally, a prepaid card can be an alternative to a credit card and a good way to stay out of credit card debt. There are several factors to consider as you compare prepaid debit cards. Some of the most important ones are: The features that will be most important to you depend on your personal situation and how you plan to use your card. Paying with cash is always an option. But cash isn’t conducive to online transactions, and there’s no protection if you lose your cash or someone steals it. A credit card, if you’re eligible for one, may be a good choice, especially if you pay your bill on time and in full every month and need to build your credit. However, credit cards make it easy to accumulate too much debt if you’re not careful. Finally, a traditional debit card is a convenient option if you can qualify for a checking account. We rate Bluebird by American Express as the best prepaid debit card. Unlike other prepaid debit cards Bluebird doesn’t charge very many fees, and the ones it does charge are easy to avoid in many cases. It’s also free to reload your card via direct deposit, ACH transfer from another checking or savings account, mobile check deposit, debit card transfer, or in person at any Family Dollar location. The main downside of prepaid debit cards is how expensive they are. Most prepaid debit cards charge lots of fees (depending on how you use them), more than you’ll generally pay if you use a bank account or a credit card. This leaves less money for you to spend. Prepaid debit cards also don’t help you build credit. Bluebird by American Express is the best prepaid debit card if you’re looking to avoid fees. There are no reloadable prepaid debit cards that are truly fee-free, however. The Bluebird by American Express charges a $2.50 fee for out-of-network ATM cash withdrawals and a $3.95 fee to load cash onto your card (except at Family Dollar locations, which offer free reloads), for example. Bluebird by American Express is also the best prepaid debit card option if you’re looking for a way to receive your direct deposits without having to pay a fee. The card doesn’t charge very many other fees either, especially if direct deposit is your main way of loading money onto the card. It offers early direct deposit so you can potentially receive your money sooner than with a traditional card, even one from a bank. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. Allied Market Research. "Prepaid Card Market Size, Share, Competitive Landscape and Trend Analysis Report by Offering, by Card Type, by End User : Global Opportunity Analysis and Industry Forecast, 2023-2032." Bluebird. "Welcome to Bluebird." Walmart. "Fee Plan." Walmart. "Walmart MoneyCard." Serve. "Serve American Express Reloadable Prepaid Card - Serve Cash Back Temporary Card Cardholder Agreement." Research and Markets. "Prepaid Cards in the US, 8th Edition." Consumer Financial Protection Bureau. "Know your rights." Federal Deposit Insurance Corporation. "FDIC Consumer News: Is the Money on My Prepaid Card FDIC-Insured?" Michigan State University Extension. "What to do when you don’t have a bank account or are underbanked." Bluebird. "Bluebird American Express Prepaid Debit Account Member Agreement." Bluebird. "Life - Simplified." Related Terms Debit Card Definition, Fees, and How They Work A debit card lets you pay for purchases by deducting money from your checking account. Learn how debit cards work, about their fees, and pros and cons. more Signature Loan: Meaning, Overview, and Examples A signature loan is a personal loan offered by banks and other finance companies that relies only on the borrower’s signature and promise to pay as collateral. more Deposit Interest Rate: Definition, Fixed Vs. Variable A deposit interest rate is the interest rate paid to deposit account holders for accounts like certificates of deposit (CD) and savings accounts. more Sweep Accounts Definition: Types and How They Work A sweep account automatically transfers amounts over or below a certain level into a higher interest-earning investment option. more Christmas Club: Overview, History, Example A Christmas club is a savings account to help people save for the holidays. Money is deposited throughout the year and withdrawn before the holidays. more Negotiable Order of Withdrawal Account: Overview, History A Negotiable Order of Withdrawal (NOW) Account is an interest-earning bank account. A customer with this type of account can write drafts against money held on deposit. moreBest Prepaid Debit Cards of 2024
Best Overall, Best for No Monthly Fee : Bluebird by American Express
Best for Cash Reloads : American Express Serve FREE Reloads
Best for Walmart Shoppers : Walmart MoneyCard
Best for Rewards : American Express Serve Cash Back
Best for Tweens/Teens : FamZoo Prepaid Debit Card
Final Verdict
Compare the Best Prepaid Debit Cards
Card Monthly Fee No-Fee ATMs Rewards Cash Reloads Bluebird by American Express No Yes, 30,000+ No Free at Family Dollar; potential fee elsewhere American Express Serve FREE Reloads $6.95 in most states Yes, 30,000+ No Free at Walmart, 7-Eleven, CVS, Rite Aid, Dollar General, Family Dollar Walmart MoneyCard $5.94 unless you load $500 or more per month No, $2.50 per withdrawal 1%-3% cash back with annual cap Free via the Walmart MoneyCard app, direct deposit, mobile deposit, bank transfer American Express Serve Cash Back $7.95 in most states Yes, 30,000+ 1% cash back with no limit Fees up to $3.95 FamZoo $5.99, or less with advance payment No No $4.95 at participating retailers In the News
Pros and Cons of Prepaid Debit Cards
Pros Explained
Cons Explained
Alternatives to Prepaid Debit Cards
Frequently Asked Questions
What Is a Prepaid Debit Card?
Who Should Get a Prepaid Debit Card?
What Should You Look for in a Prepaid Debit Card?
What Are Alternatives to Prepaid Debit Cards?
What Is the Best Prepaid Debit Card?
What Are the Downsides of Prepaid Debit Cards?
What Is the Best Prepaid Card With No Fees?
What’s the Best Prepaid Card for Direct Deposit?
See Also
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