Best of the Prepaid Cards
They can be useful for reining in spending, but make sure to choose wisely.
The sun may be setting on celebrity-endorsed plastic. From Justin Bieber to the Kardashian sisters, plenty of famous people have promoted prepaid debit cards. But over the summer, two highly publicized cards—the Approved Card From Suze Orman and Magic by Magic Johnson—announced plans to pull the plug. (The Kardashian card flamed out in 2010.)
Savvy consumers can pat themselves on the back for steering away from celebrity-branded cards. Users of hip-hop mogul Russell Simmons’s RushCard Unlimited plan, for example, pay a stiff monthly fee of $7.95 ($5.95 with direct deposit).
Prepaid cards can be useful for reining in spending, as long as you stick with ones that limit fees. Two cards from Amex stand out from the pack. The American Express Serve card waives a $1 monthly fee if you sign up for direct deposit, add $500 to your account each month or include the card in an Isis mobile wallet, which allows you to pay at the register with your smartphone. Withdrawals from ATMs in the MoneyPass network are free (you’ll pay $2 at an out-of-network ATM, plus any charges from the ATM’s owner). The Bluebird From American Express and Wal-mart card has no monthly fee. Withdrawals from MoneyPass ATMs are free if you make a monthly direct deposit (out-of-network withdrawals cost $2). Plus, you can write checks from a Bluebird account. Mobile apps let cardholders pay bills, monitor balances and deposit checks.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
For parents sending kids off to college, either card could come in handy. Both let you open a subaccount in your child’s name to which you can add money; you can also monitor spending and turn ATM access on and off.
To continue reading this article
please register for free
This is different from signing in to your print subscription
Why am I seeing this? Find out more here
Lisa has been the editor of Kiplinger Personal Finance since June 2023. Previously, she spent more than a decade reporting and writing for the magazine on a variety of topics, including credit, banking and retirement. She has shared her expertise as a guest on the Today Show, CNN, Fox, NPR, Cheddar and many other media outlets around the nation. Lisa graduated from Ball State University and received the school’s “Graduate of the Last Decade” award in 2014. A military spouse, she has moved around the U.S. and currently lives in the Philadelphia area with her husband and two sons.
-
What To Look for in Great Dividend Stocks
Dividend-paying stocks have lagged lately but are due for a comeback. Here's what to look for in great dividend stocks.
By Kim Clark Published
-
How to Retire Early by 40: Build the FIRE Now
It's not easy, but you may be able to retire by 40 or 45 if you take these FIRE (Financial Independence, Retire Early) steps now.
By Jacob Schroeder Published
-
403(b) Contribution Limits for 2024
retirement plans Teachers and nonprofit workers can contribute more to a 403(b) retirement plan in 2024 than they could in 2023.
By Jackie Stewart Published
-
Roth IRA Contribution Limits for 2024
Roth IRAs Roth IRA contribution limits have gone up for 2024. Here's what you need to know.
By Jackie Stewart Published
-
Four Tips for Renting Out Your Home on Airbnb
real estate Here's what you should know before listing your home on Airbnb.
By Miriam Cross Published
-
Five Ways to a Cheap Last-Minute Vacation
Travel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
By Vaishali Varu Last updated
-
How Much Life Insurance Do You Need?
insurance Instead of relying on rules of thumb, you’re better off taking a systematic approach to figuring your life-insurance needs.
By Kimberly Lankford Published
-
When Is Amazon Prime Day?
Amazon Prime In 2023 Amazon had two Prime Day events — one in July and another, called Big Deal Days, in October. We expect 2024 to follow the same schedule.
By Bob Niedt Last updated
-
How to Shop for Life Insurance in 3 Easy Steps
insurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
By Kaitlin Pitsker Published
-
5 Ways to Shop for a Low Mortgage Rate
Becoming a Homeowner Rates are high this year, but you can still find an affordable loan.
By Daniel Bortz Published