Bluebird Prepaid Debit Card Review: Low-fee Stand-In for a Checking Account

Bluebird is a prepaid debit card offered by American Express that functions almost like a checking account, with virtually no fees.

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This prepaid card’s features make it a useful substitute for consumers who don’t have a bank account — that’s about 7.7% of the U.S. population, according to the Federal Deposit Insurance Corp. And even if you do have a checking or savings account, Bluebird’s family-friendly budgeting and money management tools may still be appealing.

» MORE: NerdWallet’s best prepaid debit cards

Overview

Bluebird gives users a prepaid debit card that can be loaded with money and used for payments wherever American Express cards are accepted. The card’s funds are held in an FDIC-insured bank account. Unlike some other prepaid debit accounts, you can write checks from a Bluebird account — and they’re overdraft-proof.

Unlike many prepaid debit cards, Bluebird charges minimal fees. There are no charges for activation or transactions, and no annual or monthly fees. You can add money to the card via six different methods, including direct deposit, bank transfer and mobile check deposit, or you can add cash at Wal-Mart stores — all for free.

Users can also access a network of more than 24,000 ATMs for free. Withdrawing cash at Wal-Mart costs $3 and up.

Families can share one Bluebird account. The primary member can open and fund up to four subaccounts, each with its own card and spending limits.

» MORE: NerdWallet’s best checking accounts and debit cards

Fees

If you’re careful, you can use Bluebird without paying any fees at all. There are ways to load, spend and withdraw cash for free.

It does cost money to withdraw cash at non-network ATMs and Wal-Mart stores. Because Bluebird users can only withdraw up to $750 per day from ATMs, you’ll need to withdraw larger sums at a Wal-Mart.

Monthly fee	$0
Annual fee	$0
Activation fee	$0
Adding funds	$0
Free ATM network	More than 24,000 MoneyPass ATMs
Out-of-network ATM fee	$2.50
In-store cash pickup fee	$3 for up to $500 $6 for more than $500, up to $900 $9 for more than $900, up to $2,900

Why Bluebird may work for you

Bluebird offers an impressive array of free services. You can open an account online or via mobile, write pre-authorized checks, make bill payments, manage accounts and more.

Its no-bounce check-writing privileges also stand out. To write one, you must log on to your account and enter the desired amount. If you have enough funds, the amount will be immediately deducted. You’ll get a pre-authorization code to write on the check. Without the code, the check is no good.

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If you’re saving toward a specific goal, you can set that money aside in a separate account within Bluebird, with a name like “Bahamas” or “new car.” You can transfer the money back to your main account at any time. And because Bluebird keeps your money in a custodial account at an FDIC-insured bank, you’re covered for up to $250,000 if that bank should fail.

Bluebird is not a bank account, but it can function as a reasonable, low-priced substitute. To get the card, register for a Bluebird account online, download the free app at an app store, or buy a $5 starter kit with a temporary card at your local Wal-Mart store.

Jeanne Lee is a staff writer at NerdWallet, a personal finance website. Email: jlee@nerdwallet.com. Twitter:@jlee_jeanne.

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from NerdWallet
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