I know quite a few individuals who have a strange belief that having a prepaid Visa card is exactly the same as having a credit or debit card. Nevertheless, these financial alternatives are very different in a variety of different aspects; let us have an in-depth look. While the majority of people already have a bank account, only few have the consciousness to discover the different aspects and benefits of using a prepaid card. In fact, prepaid cards offer worldwide financial access and help users manage their money in the right way. These and other benefits are summarized below.
One thing that most people do not realize is that when apply for a bank account, it is quite rigorous in fact to maintain the minimum balance. This is mandatory and poses quite a hindrance on the account holder. This in fact is not applicable with the prepaid cards. The user can choose to set the deposit amount to whatever he/she wants. And since there is no minimum balance you need to maintain, you will not be charged any fee at all. Another factor every person needs to consider is selecting the type of bank account, which is just as crucial as well as can be difficult. There are a myriad of accounts to pick from, and these different selections all come with their own fine print. Don’t forget the fact that there are often strict rules about usage depending on the type of account you have selected. Prepaid cards surpass all of this, which makes managing and accessing your financial transactions both easy and convenient.
Prepaid cards also serves as a great substitute for debit cards as they facilitate users to withdraw cash at ATMs and shop or purchase globally. In addition, prepaid options allow individuals to view their spending online and they also have the accessibility to deposit funds, which simplifies the process. One of the main benefits of a prepaid card over a traditional bank account is the incapability to overdraft and incur additional fees. Spending is completely limited by the amount loaded on the card. This feature alone lets you set aside some cash every month. This also allows you to have complete control over your spending and allows you to set your personal limits on your account.
Direct deposit is another major feature of bank accounts, where paychecks can be automatically deposited each month. Prepaid cards also have the power to give users immediate access to their funds. Another option that both bank accounts and prepaid cards share in common is that they are able to transfer money between the two accounts. Just as you are able to transfer money between bank accounts, you are also able to transfer funds between two prepaid card accounts. As a matter of fact, users of prepaid cards also have the additional option of putting some of their money into a savings account, in par with what they could do with a traditional bank. These savings accounts offer a 5% annual percentage yield interest rate, a comparable rate to those available with a typical bank savings account.
Prepaid cards offer many services that those of a traditional bank account offer, but without any of the hassles or fees. Prepaid card options are an excellent way to have safe and ease of access to your money.