Pre-Pay Card

tekton23

Hi,

I keep overspending on a monthly basis and am worried about ever repaying my debts at this rate.
One plan I have is to set up another account for my day-to-day expenses and fund that on pay-day, therefore budgeting for the month, I will then use this to pay for food, going out etc and make sure my current account stays with enough in it to pay my bills. If i run out of money within this account then thats itbread and water and no going out until pay-day!
So basically can anyone tell me if there is an account with a pre-pay card or debit card with no fees and no offer of credit? I need to keep my current account with HSBC so this can not change.

Cheers,

T23

Saucepot

Why not just have another current account that does not allow overdrafts? A debit card account that rejects when there is no money, whether at cashpoint or till?

Same as a pre pay card but without the charges. You load your account with money and spend it, keeping it seperate from your other account if thats handier for your way of thinking/budgeting. Look at the nationwide as the flexaccount is useful for foriegn travel as the debit card allows charge free cash withdrawals abroad.

tekton23

thanks for your reply, can I open one of these without closing my HSBC current account though? I must keep the HSBC one going as it is a condition of my professional studies loan. i.e. a minefield if I try and close it or transfer it.
T23

Saucepot

there is no rule that says you are only allowed 1 current account. Have as many accounts with as many vendors as you like. Don't have more than you can keep track of, though.

Some current accounts have charges, some require a minimum pay in every month, look around at "basic" ones that have no charges, a debit card, and presumably no overdraft facility if thats what you want. Some one told me the co op are good at this, but I wouldn't know.

I have a nationwide account just for going abroad with. I keep £100 in as thats the minimum and pay in money when I'm off on holiday or travels. You need to keep a £100 float in that I think.

Look at "basic" accounts as they don't have a minimum balance, and you'll find them far better than pre paid cards, and fairly easy to open.

tekton23

Yes, the account looks good and is what I am looking for. However not sure if i can pay in the supermarket with a cashcard and I will have to wait 7 months until i can get a debit card. Not really sure of the fine difference between the two!

Thanks for the advice!

T23

skyrider007

Get a Lloyds TSB account. It comes with a VISA debit card.

Night-owl_6

I would say to you to open a cashcard account or Visa debit card as a pre-paid card charges and the cost can lead into alot of money come to the end of the year, a pre-paid card is only very good if you only plan to use it once a month if that, the costs can be high as £4 a transaction and loading the card can incurr fees as well:eek:

Try opening as the other member said a TSB account or try Barclays Cashcard account. :rolleyes:

someone

Problem is with an account with a debit card is if you do overspend it could not get rejected. The bank "to save you the embarrassment of your card been declined" will allow the transaction to go ahead & charge you the un-authorized overdraft rate (much higher than the authorized overdraft rate). The bank says you should have know how much you had in your account and by using your card you were saying ok to an overdraft.

Even if the card is "online only" i.e. the shop must contact the bank to charge the card this can happen.

What you overspending on? are they unexpected one offs or going over your estimate for something?

Night-owl_6

someone wrote: »

Problem is with an account with a debit card is if you do overspend it could not get rejected. The bank "to save you the embarrassment of your card been declined" will allow the transaction to go ahead & charge you the un-authorized overdraft rate (much higher than the authorized overdraft rate). The bank says you should have know how much you had in your account and by using your card you were saying ok to an overdraft.

Even if the card is "online only" i.e. the shop must contact the bank to charge the card this can happen.

What you overspending on? are they unexpected one offs or going over your estimate for something?

I believe that a debit card with a bank would be much better for this member as a pre-paid card will charge high rates, which in the event that you went overdrawn on a debit card with a bank would still be cheaper than a pre-paid card.
I know that a debit card with TSB will NOT go overdrawn, if you dont have the funds in your account the payment will fail.
Otherwise another card to consider would be a Natwest Step Account with a Solo debit card and you cant go overdrawn and you will build your credit rating up as well.
I really would not go with a pre-paid card, had awhile ago, the fees on them are silly and only any use if you cant any type of account with any bank.
Try to stay away from pre-paid cards otherwise if you really want to get one then use it as little as possible as the fees will be very high:eek:

Goodluck with the account finding:D

someone

Just to make clear, i wasn't saying a pre-paid card was a good idea (i still cant see why the can justify the fees on them cards), just wanted to warn that debit cards can still go overdrawn so dont leave it on the bank to stop you spending money.

Night-owl_6

someone wrote: »

Just to make clear, i wasn't saying a pre-paid card was a good idea (i still cant see why the can justify the fees on them cards), just wanted to warn that debit cards can still go overdrawn so dont leave it on the bank to stop you spending money.

I know, I didnt think you were saying pre-paid cards were good, just wanted to point out the fees with them are silly.
I know someone who ordered one awhile back, paid £9.95 just for the card and £5.00 each time to top it up and £2.00 each card payment made on it:eek: :eek:

It you feel that you cant manage a debit card, get a cash card:D