Prepaid debit cards serve as an alternative to traditional credit cards and debit cards, allowing users to spend up to the amount loaded onto the card, which can be reloaded as needed. The market for prepaid debit cards is characterized by fragmentation, with no single company dominating it. However, it’s experiencing significant growth, with Allied Marketing Research estimating a compound annual growth rate of 18.2% from 2021 through 2030.
These cards can be particularly beneficial for individuals who have been unable to obtain a regular bank account with a conventional debit card or those concerned about incurring debt with a credit card. They can also serve as useful budgeting tools when used in conjunction with traditional debit and credit cards, as users can only spend the amount loaded onto the prepaid card.
If you find yourself aligning with any of these reasons, here are some of the best prepaid debit cards to consider.
Looking for the best prepaid debit card? Here’s a quick guide to some top choices:
- Best Overall & Best for No Monthly Fee: Bluebird by American Express offers low fees, free in-network ATM withdrawals, and free reloads at Walmart.
- Best for Cash Reloads: American Express Serve FREE Reloads allows you to reload cash for free at thousands of locations.
- Best for Walmart Shoppers: Walmart MoneyCard offers benefits and rewards specifically for Walmart shoppers.
- Best for Rewards: American Express Serve Cash Back earns you cash back on everyday purchases.
- Best for Tweens/Teens: FamZoo Prepaid Debit Card provides parental controls and teaches financial responsibility to young people.
Bluebird by American Express stands out for its impressive combination of savings, convenience, and benefits for cardholders. With no monthly fee and access to over 30,000 fee-free ATMs, users can enjoy a range of no-cost extras, providing secure card purchases and attractive offers.
Pros:
- No fees for monthly maintenance, activation, online card purchases, and more
- Offers perks such as purchase protection, roadside assistance, and Amex Offers
- Access to over 30,000 fee-free ATMs
- Free cash reloads at Family Dollar locations, as well as free direct deposits, debit card transfers to other Bluebird account holders, and mobile check deposits
Cons:
- No rewards program
- Cash reloads at other retailers may incur fees
- Mobile check deposits may take up to 10 days unless a fee is paid
Overview: Bluebird distinguishes itself by charging fewer fees compared to most prepaid debit cards, making it an ideal choice for those on a tight budget or seeking debit card access without additional costs. Additionally, users can create sub-accounts for family members, each receiving their own card tied to the main account.
American Express Serve FREE Reloads is an optimal choice for individuals who frequently utilize prepaid debit cards and require frequent reloads. With numerous locations available for no-cost cash additions and access to a wide network of fee-free ATMs, cardholders benefit from convenient and cost-effective refills.
Pros:
- No fee for cash reloads at over 45,000 Walmart, 7-Eleven, CVS, Rite Aid, Dollar General, and Family Dollar locations
- Additional reload options include direct deposit and bank account transfers
- Access to over 30,000 fee-free ATMs
- Eligible purchases receive purchase protection*
Cons:
- $6.95 monthly fee (waived in New York, Texas, or Vermont)
- Mobile check deposits may take up to 10 days unless a fee is paid
- No rewards program or other significant benefits
Overview: For individuals without a checking account, cash reloads may be the most suitable option, making American Express Serve FREE Reloads a top contender. Furthermore, users have the flexibility to create free sub-accounts for family members.
*Eligibility and benefit level vary by card. Terms, conditions, and limitations apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.
The Walmart MoneyCard is a compelling option for individuals who frequent Walmart, as it offers multi-tiered cash-back rewards tailored to Walmart purchases. With the potential to earn up to 3% cash back at Walmart.com, 2% back at Walmart fuel stations, and 1% back at Walmart stores, users can enjoy significant savings. Additionally, the card provides the opportunity to earn 2% annual interest on a linked savings account.
Pros:
- Earn cash back rewards of 1%-3% on Walmart purchases
- Receive 2% annual interest on a linked savings account
- Monthly fee waived if $500 or more is loaded 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:
- Cash back rewards are capped at $75 per year
- Standard monthly fee of $5.94 if monthly load requirement isn’t met
- $2.50 fee for all ATM withdrawals
- Mobile check deposit may take up to 5 days to process
Overview: The Walmart MoneyCard stands out as one of the few reloadable cards offering rewards, albeit with an annual cap. Even if users cannot waive the monthly fee, the annual rewards may sufficiently cover it. However, users should be aware of ATM fees incurred when accessing cash.
The American Express Serve Cash Back card stands out for offering unlimited 1% cash back on all purchases, distinguishing it from other prepaid debit cards with capped rewards. With access to over 30,000 fee-free ATMs, users can retain more of their money.
Pros:
- Unlimited 1% cash back on all purchases
- Access to more than 30,000 fee-free ATMs
- Eligible purchases receive purchase protection*
Cons:
- $7.95 monthly fee (waived in New York, Texas, or Vermont)
- Cash reloads may cost up to $3.95
- Mobile check deposits may take up to 10 days unless a fee is paid
Overview: While unlimited 1% cash back may not seem remarkable compared to credit cards, it sets a high standard for prepaid debit cards. Despite the $7.95 monthly fee, users can potentially offset it by spending at least $795 per month with the card.
The FamZoo Prepaid Debit Card stands out as the top choice for tweens and teens, prioritizing parents, children, and financial education. At its core, FamZoo emphasizes parental control and education by offering up to four prepaid cards at no cost, enabling automatic transfers, and empowering parents to regulate card use to instill responsible spending and saving habits in their children.
Pros:
- Parents can order up to four prepaid cards for free and establish automatic recurring transfers (additional cards cost $3 each)
- Parents have the ability to lock and unlock cards, incentivize savings with interest paid from the parent’s account, and tie transfers to allowances, chores, or non-monetary rewards systems
- Access to fee-free ATMs
Cons:
- A $5.99 monthly fee applies, although it can be reduced with advance payment
- There is a $4.95 fee to load cash onto the card at participating retail locations
Overview: While the FamZoo Prepaid Debit Card is not the only prepaid card offering sub-accounts, it distinguishes itself by providing a comprehensive suite of features tailored to help parents teach their children about money management.
Here’s a comparison of the best prepaid debit cards:
- Bluebird by American Express:
- Monthly Fee: None
- No-Fee ATMs: Yes, 30,000+
- Rewards: No
- Cash Reloads: Free at Family Dollar; potential fee elsewhere
- American Express Serve FREE Reloads:
- Monthly Fee: $6.95 in most states
- No-Fee ATMs: Yes, 30,000+
- Rewards: No
- Cash Reloads: Free at Walmart, 7-Eleven, CVS, Rite Aid, Dollar General, Family Dollar
- Walmart MoneyCard:
- Monthly Fee: $5.94 unless you load $500 or more per month
- No-Fee ATMs: No, $2.50 per withdrawal
- Rewards: 1%-3% cash back with annual cap
- Cash Reloads: Free via the Walmart MoneyCard app, direct deposit, mobile deposit, bank transfer
- American Express Serve Cash Back:
- Monthly Fee: $7.95 in most states
- No-Fee ATMs: Yes, 30,000+
- Rewards: 1% cash back with no limit
- Cash Reloads: Fees up to $3.95
- FamZoo:
- Monthly Fee: $5.99, or less with advance payment
- No-Fee ATMs: Yes
- Rewards: No
- Cash Reloads: $4.95 at participating retailers
These cards vary in terms of monthly fees, ATM access, rewards programs, and cash reload options. Choose the one that best fits your spending habits and preferences.
If you’re considering alternatives to prepaid debit cards, here are a few options to explore:
- Cash: Using cash for your transactions can help you avoid many of the fees associated with prepaid debit cards. While cash has its pros and cons, careful handling can mitigate risks and expenses.
- Fintech banking apps: Many banking apps, such as Varo, cater to individuals who may have difficulty getting approved for traditional bank accounts. These apps often offer terms and features comparable to or better than those of brick-and-mortar banks.
- Secured credit card: With a secured credit card, you can open an account by depositing a refundable sum of a few hundred dollars. This type of card can be an effective way to start building or rebuilding credit.
- Second-chance bank account: Some banks provide “second-chance checking” accounts for individuals who may otherwise be denied a bank account. While these accounts may have initial limitations, consistent use can lead to access to better and more affordable banking options over time.
