The Prepaid Card Account
You may have heard of the pre paid card – a newer facility that allows you to use a card that you’ve previously loaded with a specified amount of money. Did you know though that it might also be possible to have an associated pre paid card account?
How does that work?
A conventional pre paid card typically works on the basis that you load money onto it at a PayPoint outlet.
Useful and convenient as that may be, there might be times when you’d like to automate things a little.
For example, you may wish to get money paid directly from your wages or salary directly onto your card and ready for use. That would cut out the need to get money paid into your bank and then go to an ATM to withdraw cash to load onto your prepaid card.
What would I need?
Typically, anyone transferring money electronically in the UK will need to have some form of recognisable bank account and sort code for it to be sent to.
Some prepaid card providers may be able to also make available a prepaid card account. That, in effect, is a bank account that sits alongside your prepaid card and allows you to transfer money between the two.
So, you could have money credited directly into your account and you can then automatically load money from it directly onto your card as and when you need to use it.
What are the advantages?
At the very least, you may save time and effort in loading funds onto your card.
You may also be able to save money on bank fees and transaction charges (depending upon the charging policies and tariffs of your bank) as you’ll be able to do everything at once – without the need for multiple transactions, transfers and ATM withdrawals.
Are there any costs?
The charging policies of individual prepaid card suppliers may vary and they should be checked in advance of making any commitment.
Depending upon your personal circumstances, the use of a prepaid card and associated account may be very cost-effective compared to some alternatives – but only you will be able to decide that after inspection of the figures.
Where do I find out more?
Not all financial providers offer a prepaid card account – more information is typically available through the internet.
Tags: Atm Withdrawals, Pre Paid Card, Prepaid Card, Transfer Money, Wages