Many individuals are under the belief that if they hold a prepaid debit card it is very similar to holding a bank account with a debit card associated to it. Nevertheless, these finance alternatives are very different in many aspects. While the majority of the people already have a bank account, only a few have the conscious to discover all the value benefits of using a prepaid card instead. Prepaid debit cards, in fact, offer nationwide financial access and help users manage their money in the right way. These and other benefits will be summarized more in-depth below.
One other thing that when you are about to open a bank account it is quite rigorous in fact to maintain the minimum balance which is mandatory and which poses a hindrance. This, in fact, no applicable with the prepaid debit cards. The user himself can choose the Deposit amounts can be and of course, there is no bare minimum balance you need to maintain. Additionally, selecting which type of bank account is right for you can be difficult as well. There are various account selections all with their own fine print, not to cite the fact that there are often strict rules about usage depending on the type of account you select. Prepaid debit cards surpass all of this, and make managing and accessing your finance transactions easy and convenient.
A prepaid debit card serves as a great substitute as they facilitate users to withdraw cash at ATMs and shop or purchase globally. In addition prepaid options permit individuals to view online their spending and they also have the accessibility to add funds which makes the process simple and quick. One of the biggest benefits of a prepaid debit card over a bank account is the incapability to overdraft and incurs fees. Spending is completely defined by the amount loaded on the card. This set asides you to have complete hold over your spending and have your own personal limits set on your account.
Direct deposit is another salient feature of bank accounts where paychecks can be automatically deposited each month. Prepaid cards also have the power to give users access to their funds immediately. A further option in both bank accounts and prepaid cards has in common are the money transfers between accounts. Just as you can transfer money between bank accounts, you can transfer it between prepaid cards. In fact users of prepaid cards also have the additional facility to put some of their money into a savings account, in par with what they could with a bank. These savings accounts offer a 5% annual percentage yield interest rate, a comparable rate to those available with a typical bank savings account.
A prepaid debit card has many of the services of a traditional bank account without any of the hassles or fees. Prepaid options are a excellent way to have easy and safe access to your money.