Thanks to rising bank fees, students and young adults with simple finances may begin turning to prepaid debit cards rather than having a checking account, according to Reuters. For those with simple finances, there isn’t much of a difference between these and traditional debit cards linked to bank accounts. These cards are reloadable, and some employers can now pay employees via a direct transfer to a prepaid card.
While prepaid cards can rescue you from bank fees, they can come with a whole slew of other fees, so the Consumers Union advises readers to read the fine print closely. They recommend avoiding cards with inactivity or cancellation fees. Additionally, some prepaid debit cards come from FDIC-insured banks, while others are from private companies, so be sure to do your research.
The article features an expert who advises that people get a prepaid card that has online bill pay. This allows you to pay important bills, such as rent, as though you are sending a check. Just remember that you won’t have any physical checks. Those who normally have to pay exorbitant fees for check-cashing services or money orders can greatly benefit from prepaid debit cards, Reuters says.
Please read on for my weekly roundup of my favorite personal finance blog posts from the past week!
Read More