Gift Cards

Find Information about Gift Cards, Prepaid Debit Cards and Visa Gift Cards.

Prepaid Debit Cards Free

Simplify With A Prepaid Debit Account

By Gabi Obani on September 21, 2012

Free banking is "a dangerous myth", according to Andrew Bailey, just before becoming the new head of the Financial Services Authority's (FSA) bank supervision arm(1). That's because he feels the real banking costs are hidden. This can be done by only offering very low interest rates on current accounts, applying high penalties for going overdrawn, and charging when cheques or Direct Debits bounce. But there is a viable alternative for customers looking for a simple, clearer solution: a prepaid debit card account.

For example, the Cashplus prepaid Gold MasterCard Account works in much the same way as a high street bank account, but without complicated terms and conditions that can make it hard to see what the account actually costs. The pricing is transparent and simple and without any unexpected penalties, such as when Direct Debits bounce.

This seems to answer what regulators are looking for in terms of clarity and pricing. Lord Adair Turner of the FSA feels that giving away current accounts is an important barrier to new providers. Andrew Baily states that "...retail banking in this country cannot move ahead unless we tackle the issue of free in-credit banking, and have a much better sense of what we are paying for and how we are paying."(2)

Sir David Walker, the ex-Deputy Governor of the Bank of England, notes that although ending so-called free banking won't be popular with consumer groups, this business model may have led to the recent mis-selling issues that have dogged the big banks(3).

By not pretending to offer something for nothing, prepaid debit cards remain popular with customers. Although they do clearly charge a realistic amount for the services that they provide, they still represent good value for money. In fact, these e-current accounts enable people to carry out many bank style functions electronically, from accepting wages to transferring money and paying bills via Direct Debits and Standing Orders.

There are just a few things to be aware of, like the fact that most prepaid debit card accounts can't accept cheques. However, in this age of electronic banking, most people should still be able to run this as their main account.

Prepaid debit card accounts provide a great alternative to the high street banks. So for example, unlike with the typical high street accounts, there are no hoops to jump through to set one up. Anyone aged 18 or over who's living in the UK can be approved for an account without undergoing credit checks.

The saying that knowledge is power still holds good. By providing clear details of the true costs of the banking process, customers will be able to make better decisions on which account they choose. For more and more people, this is likely to be a prepaid debit card account.

Sources:

1: http://www.bbc.co.uk/news/business-18186363 (24/05/12)

2: http://www.cityam.com/latest-news/which-warns-banks-not-start-charging-current-accounts(14/08/12)

3: http://www.myfinances.co.uk/savings/2012/08/13/barclays-new-boss-sir-david-walker-vows-to-get-it-right (13/08/12)

Prepaid Debit Cards

Original article published on SooperArticles.com

Next page: Prepaid Credit Cards Debit Cards


Bookmark/Share This Page:

ADD TO DEL.ICIO.US ADD TO DIGG ADD TO FURL ADD TO NEWSVINE ADD TO NETSCAPE ADD TO REDDIT ADD TO STUMBLEUPON ADD TO TECHNORATI FAVORITES ADD TO SQUIDOO ADD TO WINDOWS LIVE ADD TO YAHOO MYWEB ADD TO ASK ADD TO GOOGLE ADD TO MAGNOLIA ADD TO NING ADD TO RAWSUGAR ADD TO SPURL ADD TO TAGTOOGA

  Bookmark and Share

Recommended Products