A prepaid account is one that allows you some spending flexibility but will ensure your financial safety. Basically, this account means that you place a pre-determined amount of money into your account so that it can later be used via a debit card or direct withdrawal. However, no two prepaid accounts are the same. The following are some things you should know before you invest in one yourself.
Always look to see if there are any fees associated with withdrawing money. Some accounts will not have fees whereas other will tack on a dollar or certain amount of interest on each transaction. By knowing the fine print means, you can budget correctly.
Next, take the time to see how long transactions take. Some may take a matter of minutes whereas others may have some lag time. The more you know about how your account works and when funds are available, the better you will be to make and stick with a plan.
Lastly, explore how you can use the funds from this prepaid account. You may be given a card that you can swipe as if it were a real credit or debt card. Other organizations may give you an account number that can then be used for direct deposits or withdrawals.
Find out as much as possible about a prepaid account so that there are no unpleasant surprises. This is a chance to really organize your finances and make everything from paying bills to paying for lunch that much easier.