“The largest ‘con’ is its fee structure,” White says. The hefty fees that come with Netspend cards might be their biggest drawback. What Are The Disadvantages Of Using A Netspend Card? White says a Netspend account has “a large footprint and easy-to-understand marketing materials,” and that the high interest rate on the savings account is likely to appeal to many consumers. Up to a maximum of five such fees may be applied per calendar month. You won’t owe a fee if you bring your account to a positive available balance within 24 hours from the transaction that triggered the negative balance.īut, if you fail to do this within the 24-hour period, you’ll be charged $20 per each transaction that overdraws the account by more than $10. With this perk, you get a 24-hour grace period if you overdraft the account. Netspend offers an optional overdraft protection service. You can also move money from the savings account to the card six times each month. You can transfer money from a Netspend card to a savings account. If you have a Netspend card, you also can get access to high-yield savings account with up to a 5% interest rate - far above the national average for savings accounts. “The largest ‘pro’ for using a Netspend prepaid debit card involves its ability to help consumers with budgeting and spending,” White says. This differs from a credit card, which allows you to spend more, and can get you into debt trouble. Using a Netspend card also can help you from overspending, since you can only spend up to the amount of money that’s loaded on the card. Netspend says holding this card allows you to access your paycheck or government benefits more quickly. No credit check is necessary to get one of these cards. What Are The Benefits Of Using A Netspend Card?Ī Netspend prepaid debit card offers you an alternative to opening a bank checking account. Send money directly to members of your family.Withdraw money from an ATM machine or at a cash register.You can also add a paper check to your card by either using your phone and Mobile Check Load or by stopping by one of more than 130,000 reload locations nationwide. You can have money loaded on the card in the form of a direct deposit. There are a couple of ways to add cash to your Netspend card. Protection against unauthorized purchasesĪnd you can use virtual cards to get what Netspend describes as “an added layer of control over who has your card number.” How Does A Netspend Prepaid Debit Card Work?.In addition, they promise tax refunds “faster than a paper check.”Ĭardholders also can earn cash-back rewards via the Payback Rewards program.Īccording to Netspend, the cards come with: The company says that when you use these reloadable cards, you can get your paycheck up to two days faster or government benefits up to four days sooner via direct deposit. Netspend offers Visa, Mastercard, and corporate prepaid debit cards. Read on to learn more about the pros and cons of a Netspend card, and to determine whether it’s the right option for you. But the card comes with hefty fees that can negate the interest you earn. Netspend is a prepaid debit card that also offers the perk of a bank savings account that pays a hefty 5% in interest. White, Associate Professor of Finance and Assistant Dean of Teaching and Learning at the University of New Mexico’s Anderson School of Management. “Prepaid cards are a boon for consumers who often have difficulty overspending,” says Reilly S. That way, you can’t overspend and end up in debt trouble. These cards only allow you to spend up to the amount of money you load onto the card. If you’ve had trouble with credit card debt in the past - or if you simply want to be extra careful about avoiding debt in the future - a prepaid debit card can be a great option for paying for your purchases and other expenses.
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