Find out whether you have to pay any interest on your prepaid card and also whether there are any prepaid cards that allow you to earn interest on your prepaid balance. Find out more below
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Are there any Interest charges on Prepaid Cards
No, there is no interest payable on a Prepaid Credit Card.
Even though, a Prepaid Credit Card is sometimes referred to as a "Prepaid Credit Card", there is no actual credit being given to the cardholder and hence, there is no interest payable - which is great. The downside is of course that there is no interest to be earned as well.
To have a fair comparison with other electronic card products, consider the following
- Credit Card & Bank Account - interest charged on borrowing varies between 7% - 25% depending on the provider. However, interest earned on any funds that you have within your best current or savings account tends to be between 1% - 4%. Bottom line is you pay way more interest than you ever earn.
- Prepaid Credit Cards - No interest charges to be paid and no interest to be earned. Effectively and visibly cost-neutral.
Do prepaid cards earn me any interest on my balance
No, you do not earn any interest on the balance held on your prepaid card account but then again, there are no interest charges on your prepaid card account.
Even though, a prepaid card is sometimes referred to as a "Prepaid Credit Card", there is no actual credit being given to the cardholder and hence, there is no interest payable - which is great. The downside is of course that there is no interest to be earned as well.
To have a fair comparison with other electronic card products, consider the following
- Credit Card & Bank Account - interest charged on borrowing varies between 7% - 25% depending on the provider. However, interest earned on any funds that you have within your best current or savings account tends to be between 1% - 4%. Bottom line is you pay way more interest than you ever earn.
- Prepaid Card - No interest charges to be paid and no interest to be earned. Effectively and visibly cost-neutral.
