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The Best Prepaid Debit Cards, February 2012

This article was written by Flexo in Credit. 13 comments.

Prepaid debit cards have always been a controversial topic, particularly the cards that carry insanely high fees just for making everyday purchases. Suze Orman’s entry into the prepaid card business, the Approved Card, prompted heated debate about whether it represented a conflict of interest, given Orman’s following. In 2010, after the Kardashians announced their branded prepaid card, they received bad press due to the card’s predatory fees and lack of customer benefits. That card was canceled soon after it was announced. Not all prepaid cards are as bad, but fees are common. You need to evaluate each offer to determine whether a prepaid card is right for you. For parents who want to monitor and control their children’s spending, while teaching their children how to responsibly handle money management, prepaid debit cards are some of the preferred tools.

The best prepaid debit cards are cards without fees, offering rewards for everyday purchases. While credit is almost everywhere in this country, many Americans do not have a credit card or bank account. They use cash for their needs. While this might be a cheaper method of paying for products and services, it isn’t always safe to carry around cash for purchases. Rather than resort to prepaid cards with high fees like the popular Rush brand of cards from Russell Simmons, consider looking at some of these best prepaid debit cards available for consumers today.

Green Dot® Prepaid MasterCard®. The Green Dot® Prepaid MasterCard® is a card with a simple fee plan and a $10 bonus after your first direct deposit of $250 or more. Cardholders will not have to pay a monthly fee as long as they deposit at least $1,000 onto the card monthly or make 30 monthly transactions. If these conditions are not met, the monthly fee is $5.95. Online activation will cost $0. There are fees for initial purchase of up to $4.95, reloading the card fees vary by retailer and is currently up to $4.95, cash withdrawal fees vary based on amount.

UPside Visa Prepaid Card. The UPside Visa Prepaid Card offers three different plans depending on your lifestyle, each with a different fee structure. A card designed for teenagers, the UPside Visa Prepaid Card allows parents to load cards free of charge. If you select the plan that charges an annual fee of $29.95 (the Edge plan), you’ll receive 1% cash back on all of the funds you load each and every year. Loading the card via direct deposit is free for Edge and Access plan users, and ATM access and online check writing are also free. Members who choose the Clear plan, which has a monthly fee of $2.99, will have to pay $2.50 for each direct deposit initiated from a debit or credit card.

American Express Prepaid Debit Card. If you’re looking to avoid fees with your prepaid debit card, this choice from American Express might be the best option. You can load the card from a bank account online or by phone, or you can place your deposit in the form of cash by purchasing a “MoneyPak” at over 50,000 retail locations including Walmart, CVS, 7-Eleven, and Walgreens. There is a fee for purchasing a MoneyPak for depositing cash, but American Express is refunding these fees for a limited time. The card comes with many of the major benefits that all American Express cardholders receive, like roadside assistance, purchase protection, and advance tickets to entertainment events. There are no annual or monthly fees, no overdraft fees, no transaction fees, and American Express does not perform a credit check on its potential customers.

ACE Elite(TM) Visa® Prepaid Card ACE Elite™ Visa® Prepaid Card. The Ace Elite™ Visa® Prepaid Card offers three different plans varying on the needs of the customer. Depending on the plan selected the card carries a monthly maintenance fee of $5.00 – $9.95. There is a plan that includes no monthly maintenance fee, but, this plan carries a charge of $1.00 for every purchase you make. With monthly direct deposit your cash withdrawals up to $300 per day are free at any participating ACE Cash Express location. The ACE Elite™ Visa® Prepaid Card also allows you to overdraw your account by $10, at no added fee as long as you have $500 direct deposit.

Vision Premier® Visa® Prepaid Card. The Vision Premier® Visa® Prepaid Card has only three fees in their portfolio based on whether you have direct deposit. And every other service they provide is free with no disclaimers, tiers, or restrictions for cardholders. The three fees with direct deposit are a $9.95 activation fee, $7.95 monthly fee, and a $2.50 ATM fee. The three fees without direct deposit are a $9.95 activation fee, $9.95 monthly fee, and a $2.50 ATM fee and free customer service for the first thirty days and $1.95 per call thereafter.

READYdebit® Platinum Visa® Prepaid Card. The READYdebit® Platinum Visa® Prepaid Card includes free direct deposit, free online bill pay and a bevy of other services, free of charge. There are two main fees associated with this card, however. The first is a one-time activation fee of $9.95, and the second is a monthly maintenance fee of $14.95. The card also carries fees for ATM withdrawal and bank teller cash advance. When compared to other cards on this list, these fees can add up over a full year, but the READYdebit® Platinum Visa® Prepaid Card is still better than most prepaid cards in the market today.

As you can see, the prepaid debit card industry is mired in fees. If you believe a prepaid debit card is right for you, tread carefully, read the terms and conditions, and know the fees. Even the best prepaid debit card can end up costing more money than you are prepared to spend. There are many other debit cards I’m not including in this list at all because they are best avoided. Using a prepaid debit card can help a responsible person who does not qualify for a credit card handle their expenses, but it can also be a recipe for disaster.

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PenFed Promise VISA Card Review

This article was written by Flexo in Credit, Reviews. 1 comment.

Whenever you make a purchase with your credit card, the wise move is always to pay off the purchase before the bill is due to avoid interest charges and late fees. If you know that won’t be possible in the short-term, the best thing you could do is keep your interest payments low by choosing the card with the lowest interest rate. The PenFed Promise VISA Card can make sure that you pay as little interest as possible, with one of the best purchase APRs currently available.

The PenFed Promise VISA Card offers cardholders an introductory APR of 7.49% for 36 months. Unlike most credit cards where the APR jumps after the introductory period, this card only increases slightly, to a variable rate of 9.99%. The purchase APR depends on the prime rate, so if the prime rate increases, you can expect your credit card interest rate to do the same.

Unlike other credit cards, the PenFed Promise VISA Card does not offer a rewards program. Why in the world would you decide to use this card over another that can earn the user cash back or other benefits?

It comes down to the interest rate. If you’re planning a big purchase and know you won’t be able to pay the balance in full immediately, this is the card to use. Other credit cards charge between 11.99% and 27.99% depending on your credit history, and if you drag out minimum payments on those cards, your interest payments will be large. While you would receive a substantial reward on another card, the interest you will fork over will most certainly cost you more than the reward you stand to receive. In fact, the difference could be thousands of dollars over time.

The PenFed Promise VISA Card does not carry an annual fee, so the card is always free to own. You are required to be a member of the Pentagon Federal Credit Union in order to be approved for this card. If you meet any of the following criteria, you will be accepted into the credit union.

Member of the United States Military or Uniformed Services
Member of an eligible military association
Employed by the US Government
Employed by an eligible place of business
Family member of someone in the United States Military
Employee or volunteer of the American Red Cross
Reside on a military base
Make a one-time donation of $20 to the National Military Family Association
Make a one-time donation of $15 to Voices for America’s Troops

This year, one of your many New Year’s resolutions should be to pay absolutely no credit card interest. For those unable to obtain this goal, consider the PenFed Promise VISA Card for big purchases.

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Electronic Cigarettes Might Just Be Ideal

This article was written by Smithee in Frugality. 13 comments.

This is an article by Consumerism Commentary staff writer, Smithee.

This article assumes that some people smoke and some people don’t. It won’t address the notion that smokers shouldn’t smoke, and I hope you will also avoid that controversial viewpoint in the comments below.

People are vaporizing all over town, but don’t worry, they’re doing it on purpose using a “personal vaporizer,” also called electronic cigarette or e-cigarette. These are basically just alternatives to the normal cigarettes you and I have known about all our lives. An e-cigarette is made of plastic, has a battery, is re-usable, and lets you decide what to fill your mouth with.

If the advertising is to be believed, this is a product which doesn’t rely on smoke, or fire, or tobacco, not to mention dozens of foreign toxins normally found in cigarettes, for example, tar.

So how would this affect a smoker’s finances?

It’s almost certainly less expensive

E-cigarettes use cartridges to store the liquid that gets vaporized into your mouth when you take a puff. A cartridge is equivalent to about 10-12 normal cigarettes. Taking the low end of the estimate, a cartridge lasts about as long as half a pack. Assuming a pack of cigarettes costs an even $5.00, and you can get five e-cigarette cartridges for $9.00, you’d be saving about $1.40 per “pack” if you switched from regular cigarettes to the electronic variety.

Some models don’t use disposable batteries, either. You can get one that plugs into a USB socket in order to charge it.

It’s almost certainly less offensive

As an added bonus, smokers don’t have to smell bad to non-smokers anymore. The cartridges come in countless flavor varieties. You can even mix them if you want. I’ve been in the room with many of them, and none of them smell even five percent as bad as normal cigarettes do. Of course, part of that might be due to the vapor traveling less far than smoke would. It might still get on your clothes, but at least you can choose to smell like bacon, or vanilla, or chocolate.

Furthermore, you won’t be needing the ashtray in your car, anymore. Your occasional passengers will appreciate this a lot more than you know.

I personally think it might even be okay to allow e-cigarettes into restaurants and other public places. It’s really that inoffensive.

Is it healthier?

Nobody knows for sure, though most companies are making bold claims about the health benefits of switching. There haven’t been many studies done on the numerous providers of e-cigarettes, or more specifically, the e-liquid that makes them work. Some countries have banned them altogether, but those decisions may be political as much as anything else.

Recently, the U.S. FDA sent letters to five different providers about how they’re not in compliance with the law, and explaining the pathway the FDA intends to take toward proper regulation of this new product. Maybe in the near future e-liquid will also come with enormous, purposely ugly warnings about the dangers of smoking, which other countries have been living with for years, but which is brand new to the U.S.

People do seem to agree, though, that moving from regular cigarettes to the electronic variety brings back one’s sense of smell and taste.

There’s no timer

Since an e-liquid cartridge lasts about as long as half a pack of normal cigarettes would, it’s much more difficult to tell when you’re done smoking. Someone who switches to e-cigarettes as part of a plan to quit smoking might actually end up ingesting more nicotine in a day than they used to.

In order not to overdo it, a person would have to start exerting a new kind of self-discipline, which is always difficult.

Conclusion

I’m not a smoker, but unless some new damaging evidence comes to light, I have to conclude that compared to the paper kind, electronic cigarettes are better for your body (if only just your sense of smell), better for your non-smoker friends, better for the environment, and better for your wallet.

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My Grandmothers and the Cost of a Funeral

This article was written by Flexo in Consumer. 14 comments.

Ninety-three years is a long time to live. My paternal grandmother was that age when she passed away this past Saturday. I attended her funeral, a graveside service, earlier this week. She lived in Florida, but she was flown up to Long Island to be buried with her husband, who died in 1968.

A couple of weeks ago, my maternal grandmother entered hospice care, with the doctors offering a prognosis of days or weeks, maybe months, due to Parkinson’s disease and, I believe, complications after hip surgery. She lives in California and is in her mid-eighties, and since receiving the news I’ve been mentally and logistically planning to travel out to the west coast at any time with one day’s notice.

I was then surprised when I heard from my father this past weekend that his mother had also entered hospice care. While my mother’s mother continues to have bad days and somewhat better days but is surviving, my father’s mother passed away after one day. My family in Florida held a ceremony for her on Monday, and more family in New York was on hand on Tuesday for the burial. This quick pace is not uncommon; Jewish funerals typically occur quickly, without a wake or viewing.

Occasions like these often bring together distant relatives who have been out of contact, and this Tuesday was no different. It was great to see relatives and friends of the family I had not seen in decades and meet other friends and relatives.

I wasn’t involved in the financial aspects of this event, but it was apparent that a funeral can be a very expensive event. Despite the morbidity of the though, a funeral should be financially planned. In our case, the plot was purchased a long time ago, when prices were surely much lower than they are now. In my grandmother’s case, I would imagine the transportation from Florida to New York was the most expensive part of the day.

How much does a funeral cost?

The National Funeral Directors Association conducts a survey every year or so to gather information about the cost of funerals across the country. As you would imagine, the costs increase every year. The 2006 survey produced these averages for itemized funeral services:

Item	Price
Non-declinable basic services fee	$1,595
Removal/transfer of remains to funeral home	$233
Embalming	$550
Other preparation of the body	$203
Use of facilities/staff for viewing	$406
Use of facilities/staff for funeral ceremony	$463
Use of a hearse	$251
Use of a service car/van	$120
Basic memorial printed package	$119
Subtotal without Casket:	$3,940
Metal Casket	$2,255
Subtotal with Casket:	$6,195
Vault	$1,128
Total Cost	$7,323

The cemetery where my grandmother is now buried also has a yearly fee for keeping the plot tidy but has an alternative option for “perpetual care.” Perpetual care is a one-time fee, currently $2,000 at this particular cemetery, that covers trimming the hedges and other landscaping.

The Federal Trade Commission requires funeral directors to provide itemized prices for all services related to the funeral, so make sure you ask as many questions as possible.

Planning for a funeral

In 1968, when my paternal grandfather died, the average total funeral cost was $708; in 2006, the average total cost was $6,195.

One of the best ways you can help those you leave behind afford this expense, if you can manage to help, is to set aside money to care for the events surrounding your own death. In the real world, there are many things that can get in the way of this planning such as the cost of health care. Even though there are often financial obstacles as you age, any consideration will help your family.

The first thing you could do, if and when you have settled down to live in a certain area, is purchase a plot in a cemetery that fits your family’s tradition or religion. Buying the plot in advance will save money down the road as the cost of plots and practically everything else associated with a funeral increases at a rate higher than inflation.

If it is not offensive to you, or your religion, cremation is a less expensive option. Consider cremation if this is aligned with your personal values.

Don’t forget to comparison shop. If you want until it’s too late, there may be pressure to make decisions quickly. This increases the chances of spending money unnecessarily.

For those looking to cut costs on a funeral, Christopher Solomon has suggestions for planning a funeral for $800 or less.

Coming to terms with mortality

I never said William Shatner is a great singer. His first album, The Transformed Man, established his status in music history as not a great singer. But paired with Ben Folds for the more recent Has Been, he came up with the poignant “You’ll Have Time,” which reminds us all that we are going to die at some point. “Live life like you’re gonna die, because you’re going to…”

There’s never been a better reason to stop procrastinating.

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The Family Smoking Prevention and Tobacco Control Act

by Smithee

A new law signed by the president yesterday gives the Food and Drug Administration the ability to regulate the tobacco industry. The primary focus of the law is to stop cigarette companies from aggressively marketing to children. To that end, it will soon be illegal to: sell candy-flavored and fruit-flavored cigarettes put tobacco company logos ... Continue reading this article…

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Fortune Magazine’s Best Stocks for 2008: Last December’s Prediction

by Flexo

This should prove to be a good study of professional prognostication. Last December, Fortune Magazine predicted the best stocks to hold in 2008, directing investors to ten specific stocks the magazine thinks will perform well this year. How are these stocks holding up so far, compared to the indexes? The S&P 500 Index is down ... Continue reading this article…

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Still Having Problems With TIAA-Cref? Talk to the Press!

by Flexo

I am still receiving comments from people who are having technical issues with TIAA-Cref, even almost a year and a half after my first problem with their system in January 2006. I’ve recently received a notice from a reporter who is looking to follow up with this story. If you are still having customer service ... Continue reading this article…

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Follow-Up: Sleep Well and Cheap, But Beware Melatonin

by Flexo

Last week I posted an impromptu series on Ten Free Ways to Improve Sleep (part one and part two) with additional thoughts on the finance of sleep loss. J.D. continued the thread on Get Rich Slowly with A Brief Guide to Better Sleep. J.D. mentions the circadian rhythm, which is genetically imprinted in humans to ... Continue reading this article…

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