Card deposit vs bank

[LadyJ]

Odd question. I have always used a bank, most of the time a credit union. I keep seeing posts about green dot cards, netspend cards, etc…. I have never gotten my deposit after my DD date, EVER with my bank. What benefits does using a card like netspend or greendot give you over using a bank for your deposit? Early deposit? Less fees? Honest question here.

[Single Mom.]

I would always use a bank or credit union. Those pre paid is not worth it. It worth the two day wait then getting charge each time you use the prepaid card. Most bank make deposit 3am on business day anyway. Chat next tax season 2019…

[Ladyj]

Ok so the general consensus is to stay with my credit union for taxes. I was never going to leave Navy Fed but I was considering trying the prepaid card this year but was too lazy to research it too much. Then reading all these people in here usinng them I was thinking about it for next year. I guess I will just stay away.

[Sarah]

They get their refunds early because they don’t hold like a bank does. The release as soon as IRS sends it to them. The IRS sent money on Friday to the 02/22 DD and banks are holding it but the cards all released the money friday and Saturday. But the card is not worth it. I owed a bank in the past like a 100 and to lazy to pay it back I opened a prepaid card. It was horrible. I was charged EVERY transactions. I went straight to the bank I owed and paid the money. Then opened my account. Been there for years now. Chase to be exact. Chase never releases early but I would never get a prepaid card again.

[brideofchaotica2]

I have had prepaid cards for years. They are NOT worth it if you CAN have a bank account. Some people with bad credit, especially those that owe debts to banks, cannot use a bank account, so that is why prepaid cards are so common. Its not like you can owe $500 to Wells Fargo and go apply at Chase for another account. It is pretty standard for direct deposits, including tax refunds, to have NO FEE associated with that type of deposit. However, depositing cash can cost around $5 to deposit, and monthly fees can go from free if you have a certain amount of $$ coming in via direct deposit to $10/mo if you are poor and do not have enough funds coming in. Some charge $1 per transaction. Some cards release funds right when they get a DD, which is why some peoples tax refunds and direct deposited paychecks come in early. Some hold on to direct deposits like banks do, and release them the day they are supposed to (i.e. ON payday instead of before, or ON a tax refund DDD instead of before)

[Jonny Tombstone]

Yeah those prepaid cards are shady AF. Last time I had one. I got charged to deposit money on them, Got charged everytime I made a transaction. Got charged a monthly fee. Got charged an ATM surcharge fee, ON top of the ATM’s fee for using it. I would not recommend using those cards ever. Its quick and simple to open a bank account, and then you don’t have to worry about paying crappy fee’s

[LadyJ]

Thanks for the ino. I am with Navy Fed and I am happy with them, but I felt like I was missing something. So many people use the prepaid cards, I hate to be missing something that may help me out in the long run.

[kev]

IMO, no, just stick with your credit union. I just don’t feel like they are worth the extra costs that come with those cards.

Maybe some don’t have fees, but I’m too lazy to read the fine print on the 50 different reloadable cards. And my credit union doesn’t ever release funds early lol

[RfndRcvr]

Brandi-
This is my first year using Suntrust for a tax deposit. Do they ever rease early or is it true to DD?

[Brandi]

I’ve been wondering this same thing. I don’t use a credit union, but a bank. Suntrust to be exact lol…..I also see so many peeps on here using the prepaid cards & as I stated, I was always curious “why”? No bank acct or just by choice?

[LadyJ]

Thanks, I know my banks policies, I am with a credit union, no fees, early release of funds, I even get atm surcharge rebates back every month. I was curious as to what the advantage to using one of these cards (netspend, green dot, etc) is over a traditional bank/credit union. Am I missing something? Should I consider one of these cards over using my credit union next tax season?

[kev]

While some of these cards release funds to the customer quicker, they also tack on oodles of charges. Most common is a $5 monthly fee, and ATM surcharges.

Lots of credit unions will release funds early as well. Some even use it to attract clients. Ask your bank and theyll tell you their policy for handling direct deposits.

[Author]

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