Editor’s note: This is a transcript of the audio file.
Consumers are increasingly looking to prepaid debit cards as a convenient and alternative method of payment. But are they right for you? I’m Kristin Arnold with your Personal Finance Minute.
Greg McBride, senior financial analyst with Bankrate.com, joins me now and Greg, who is best suited for one of these prepaid cards?
“Consumers with a tendency to overdraw their checking accounts or those unable to obtain checking accounts may find a prepaid card to be a suitable alternative, but for most consumers a low-cost or free checking account remains the better option.”
What types of fees on prepaid cards are consumers likely to encounter?
“All of the cards surveyed charged some kind of fee, whether it is a monthly fee, ATM fees, or even a fee to speak with a customer service agent. It is definitely important to shop around so you find a card with the lowest possible cost for your needs.”
Thank you, Greg. To compare the different fees and find the best prepaid debit card for your needs, just log onto our website, Bankrate.com. I’m Kristin Arnold.