6 best prepaid cards of September 2024 (2024)

Prepaid debit cards are a simple way to pay for purchases without opening a credit card or bank account. They work similarly to a debit card in that you can use a prepaid card to pay bills, set up direct deposit and use mobile check deposit, plus they're reloadable. You'll even receive the same $250,000 FDIC insurance that protects your deposits if your bank fails.

One reason to opt for a prepaid debit card over other forms of plastic is that it's a relatively low-risk way to manage your money. If you struggle to stick to a budget, you can use a prepaid debit card to help monitor your spending so you can eventually graduate to an actual debit or credit card. Parents can use prepaid debit cards to teach their kids about money before making them authorized users on their credit cards. (See our methodology for more information on how we choose the best prepaid cards.)

Who's this for? The BluebirdAmerican ExpressPrepaid Debit Account offers you zero monthly fees, so you can budget even better knowing you aren't paying for a card every month.

Standout benefits: Cardholders enjoy free early direct deposit, the ability to load money onto your card fee-free at any Family Dollar location, free ATM withdrawalsat over 38,000 MoneyPass^®ATMs, free online bill pay, free to freeze card and free to transfer money to other Bluebird account holders, as well as the ability to set spending limits and review activity of Bluebird Subaccounts. You can set up notifications for things like low-balance alerts.

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Who's this for? If you're seeking rewards, the ServeAmerican ExpressPrepaid Debit Account Cash Back is for you, offering unlimited 1% cash back on your spending. The cash-back rewards can be applied to your account as you earn them or stockpile and save them for later use.

Standout benefits: You can withdraw your money fee-free at over 37,000 MoneyPass ATMs nationwide, and you can freeze/unfreeze your card at any time. Plus, as an American Express cardholder, you'll get purchase and fraud protection, 24/7 customer service and roadside and emergency assistance.

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Who's this for? With the Serve American ExpressPrepaid Debit Account Free Reloads, you can add cash often and at any time (as much as $500 or as little as $20) without incurring fees, making it easy to manage your day-to-day expenses. If your account runs low, you can quickly reload cash onto your card for free at over 45,000 retail locations' cashier registers with just a barcode, or you can transfer money from your bank account without a fee.

Standout benefits: You'll have access to schedule online bill pay and, as an American Express cardholder, you'll get purchase and fraud protection, 24/7 customer service and roadside and emergency assistance.

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Who's this for? If you have a family, the FamZoo Prepaid Card, along with its app, is perfect for kids, teens and their parents because it gives parents control while helping their children learn about financial education. FamZoo offers prepaid debit cards for all ages, plus plenty of family-friendly perks.

Standout benefits: Benefits include instant transfers between family member cards, IOU accounts to hold money for your child for things like allowance and savings interest, direct deposit for teens, restricted child access so only parents can control the accounts and make money rules, card activity and balance alerts, the ability to lock/unlock a card, automated approval and tracking of money requests from kids, different customizable funding accounts for spending, saving and giving, automated allowance transfers, automated chore payment checklists and charts, automated parent-paid interest to encourage saving, savings goal tracking, family loan tracking with parents' chosen interest rates on money loaned to kids, plus automated family billing to charge kids for recurring expenses the family shares like cell phone plans.

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Who's this for? The Walmart MoneyCard is a reloadable debit card that earns cash back, making it a great addition to your wallet if you frequent the big retailer. You can earn cash bank on your qualifying Walmart purchases, up to $75 per year: earn 3% at Walmart.com and on the app, 2% at Walmart fuel stations and 1% at Walmart stores.

Standout benefits: The Walmart MoneyCard offers three levels of overdraft protection up to $200 if you opt-in and make eligible direct deposit. With early direct deposit, you can get paid up to two days before payday and get your benefits up to four days before benefits day. There's no monthly fee when you direct deposit $500 or more in the previous month (otherwise, it's $5.94 per month). You can earn 2% APY on your savings​ and order accounts for free for up to four additional family members ages 13-plus.

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Who's this for? With the PayPal Prepaid Mastercard, you can load money onto your card directly from your PayPal account, and the prepaid debit card can be used everywhere debit Mastercard® is accepted.

Standout benefits: You can also add money to your PayPal Prepaid Mastercard using the free direct deposit service, getting access to your funds up to two days faster, as well as at over 130,000 Netspend Reload Network locationsnationwide such as at retailers like CVS® and 7-Eleven, as well as at grocery stores. When you shop at qualifying stores, you can get special offers and cash-back rewards to your account. You can receive alerts from the app, plus there's also an option to add a high-yield savings account where you can earn 5% APY on balances up to and including $1,000 and earn 0.50% APY on any balance portion above $1,000.

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American Express is mostly known in the credit card space, but it also offers banking accounts like checking, high-yield savings, CDs, as well as business banking and funding, as well as personal loans. The BluebirdAmerican ExpressPrepaid Debit Account stands out for charging no monthly fee, as well as no cash reload fee at Family Dollar locations. Card members also get access to purchase and fraud protection, Amex Offers, 24/7 customer service, roadside and emergency assistance, as well as Amex experiences.

Card opening fee

$0 online, up to $5 in stores

Monthly fee

$0

Cash reload fee

$0 at Family Dollar, up to $3.95 at other participating retailers

Maximum balance

$100,000

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ServeAmerican ExpressPrepaid Debit Account Cash Back is a prepaid debit card that earns cash back on your spending, but comes at a monthly fee.

Card opening fee

$0 online, up to $2 in stores

Monthly fee

$9.95

Cash reload fee

Up to $3.95 at participating retailers

Maximum balance

$100,000

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As its name suggests, the Serve American ExpressPrepaid Debit Account Free Reloads stands out for offering $0 cash reloads at a number of major retailers. The drawback is that the card comes at a monthly fee.

Card opening fee

$0 online, up to $2 in stores

Monthly fee

$9.95

Cash reload fee

$0 at 7-Eleven (select locations), CVS, Dollar General, Family Dollar, Rite Aid and Walmart, up to $3.95 at other retailers

Maximum balance

$100,000

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FamZoo is a virtual family bank that offers prepaid debit cards and financial education for kids in an app.

Card opening fee

$0, $3 additional card fee for each card after first 4 free cards

Monthly fee

$5.99 per family

Cash reload fee

Up to $4.95

Maximum balance

$5,000

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Walmart is the big-name discount retailer we all know about. In addition to offering a prepaid debit card, Walmart also has a credit card and its Walmart+ membership plan.

Card opening fee

$1

Monthly fee

$5.94

Cash reload fee

$0 using the Walmart app, $3 with card at Walmart stores, up to $5.95 at other locations

Maximum balance

$10,000

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PayPal is a fintech company offering everything for your digital wallet, such as credit and debit cards, a savings account, buy now, pay later, its own cash-back rewards program, online money transfers and more.

Card opening fee

$0 online, up to $4.95 at retail locations

Monthly fee

$4.95

Cash reload fee

Up to $3.95 at Netspend Reload Network locations

Maximum balance

$15,000

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Prepaid debit cards can be used to make purchases and pay bills, just like debit or credit cards. They are accepted nearly everywhere since they are often backed by a major card network, such as Visa, Mastercard or American Express.

Similar to a gift card, you add value to the prepaid debit card before you can use it, which is essentially like prepaying for future purchases. But prepaid cards come with a few more bells and whistles, like the ability to set up direct deposit and check your balance on a mobile app. They also require more attention since you can incur fees for simply having a card or reloading it with more cash. Issuers won't do a credit check when you open a prepaid card, but you also don't build a credit history when you use one.

One disadvantage of using a prepaid debit card is that you can only complete transactions up to the amount you have loaded onto it. If you add $200 to your prepaid card, you can only spend up to $200. Any purchases you attempt to make exceeding $200 will be declined until you load more money onto your card.

Additionally, there's often a cap on how much money you can have on your card. The cards on this list have limits ranging from $5,000 to $100,000. That said, the cap is generally pretty similar to a credit limit on a credit card.

Prepaid debit cards are a good option for parents who want to give their kids spending money without handing them cash that could potentially get lost. You can request a new prepaid debit card if it goes missing, and many card issuers allow you to lock your card to prevent unauthorized use. And since you can incur overdraft fees with a debit card or quickly run up a balance on a credit card, a prepaid debit card can help you limit your kids’ spending to the amount loaded on the card.

Choosing a prepaid debit card could be a good choice for you if you have a history of overspending. A prepaid debit card might be a better alternative than a traditional debit or credit card, as it can force you to stick to a budget by declining purchases that exceed the balance in your account. But make sure it makes financial sense. Even though you're saving on potential interest charges or overdraft fees, the monthly fees on a prepaid debit card can get very expensive, too. If you decide that using a prepaid debit card makes it easier for you to manage your finances, make sure to sign up for a no-fee card.

The main difference between prepaid debit cards and traditional debit cards is that the former is preloaded while the latter is connected to your checking account. With a prepaid debit card, you have to load money onto the card. Neither a prepaid debit card nor a traditional debit card can help you build credit, but both can help you manage your money closely.

While prepaid debit cards are a good option if you don't have a checking account, and for parents who want to give their kids a limited amount of money, traditional debit cards are a good alternative for anyone with a checking account since they provide easy access to your money and don't need to be reloaded.

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To determine the best prepaid debit cards on the market, CNBC Select analyzed and compared cards that offer benefits to individuals and families who are looking for an alternative to traditional debit and credit cards to manage their money.

When ranking the best prepaid debit cards, we focused on the following features:

• Low, or free, card opening fee
• Monthly fees under $10
• Variety of ways to add money
• Ease of use
• Perks, like cash-back rewards and free family accounts
• Mobile app

Keep in mind that while prepaid debit cards are an alternative to traditional debit and credit, they won't help you build credit. In order to establish a credit history, you need to regularly use a credit card responsibly, paying your bills on time and in full every month. And if you want an easy way to deposit and withdraw money for daily transactions, consider opening a checking account with a linked debit card so you can avoid ATM charges.

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