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Auto Loan, Reviews

Capital One Auto Loan Review

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If you’re going into a dealership without first shopping around for an auto loan, then you may be leaving money on the table. That’s because the dealership may not offer the best rate, so you may be driving your newly financed car with a less-than-attractive APR.

The prevalence of online lenders makes the preapproval process super simple. If you do get preapproved, you’ll increase your chances of negotiating a better price for the car you want, and the dealership may even try to beat other loan offers. With any loan, shopping around is always recommended. Here we’ll look at the Capital One auto loan, its details and how it compares to others. We’ll also go over how to apply for one.

What is Capital One?

Richard D. Fairbank founded Capital One in 1988, and the bank is headquartered in McLean, Virginia. Capital One is now one of the largest banks in the U.S. based on deposits, and it offers personal banking products including deposit accounts, credit cards and loans, as well as small business and commercial banking products.

Capital One auto loan details

Capital One’s Auto Navigator program offers APRs for new cars as low as 3.99% and used cars as low as 4.70%. The rate you receive will depend on the loan term, your credit history and loan-to-value ratio. Financing terms range from 36 to 72 months (three to six years). You can finance depends on the value of the car you intend to purchase from $4,000 - $40,000. This amount could include the sales price, tax, licensing fees and other optional products like an extended warranty from the dealer.

Capital One’s loan program serves people who want to purchase a new or used vehicle, including minivans, SUVs and light trucks intended for personal use. It does not allow borrowers to finance other types of vehicles such as RVs, boats or motorcycles, as well as certain makes of vehicles. The car you intend on purchasing must have less than 120,000 miles on it, and the model year has to be 2006 or newer, with the exception of some states where it needs to be at least a 2008 model.

To get a loan, first request prequalification, and if you get it, present this offer to the dealer. You’ll then fill out a credit application at the dealer so Capital One can match the loan terms, once the participating dealer submits it. To prequalify, you need to be at least 18 years old with a valid U.S. address and a minimum monthly income of $1,500 or $1,800, depending on your credit situation.

How it stacks up

Where Capital One auto loans stand out

  • Competitive rates: Capital One offers rates on par with other major retailers. Though its rates are slightly higher than what credit unions offer, it’s important to remember that some of those institutions have strict membership requirements.
  • Range of terms: You get a choice of four financing terms ranging from 36 to 72 months.
  • Choice of dealerships: You can choose from 12,000 participating dealerships to purchase a vehicle of your choice.
  • No prepayment penalties: You can pay more than the minimum balance due and won’t face any fees. If you choose, you may be able to shorten the loan term if you pay off your remaining balance.
  • Online preapproval: Capital One offers an easy to follow application process to find out how much you could finance.

Where Capital One falls short

  • Low maximum loan amount: Other competitors offer loans up to $100,000, which could come in handy if you’re looking to purchase a pricy vehicle.
  • Financing only valid at eligible dealers: Capital One doesn’t finance vehicles bought through private party sellers or auto brokers. You also can’t use financing for a lease buyout.
  • Can only borrow a maximum of 80% of the vehicle value: Borrowers need to have a loan-to-value ratio of 80% or less.
  • Not all vehicles qualify: You can’t finance recreational vehicles, including motorcycles, ATVs and RVs. Capital One also doesn’t finance vehicles for commercial use.

How to apply

To get auto financing through Capital One’s Auto Navigator program, first fill out an application to see if you prequalify for a loan. On the first page of the form, it’ll remind you of the terms of the loan, such as the minimum and maximum loan amount and the condition of the car you’re looking to purchase. You’ll need to fill in your personal information such as name, birthday and Social Security number. Then you’ll be asked to provide employment and residence information before submitting the form. Documents you may need to provide include a utility bill in your name dated within the last 30 days as proof of residence and a recent pay stub as proof of income.

Once you’re qualified, you can head to more than 12,000 participating dealers to search for cars. You can browse online and save the listings for your favorite cars for up to 30 days. For most listings, you’ll be able to see the advertised price and financing terms. Those terms are based on what you prequalified for, and you get to see the APR and monthly payments specific to you. You can customize loan options such as the down payment amount, loan term and even your monthly payments.

At the dealership, you can negotiate the price of the vehicle and tally up the total costs including taxes, sales price and licensing fees. You can still make any changes to your loan offer and review the financing terms before completing a credit application at the dealer.

Capital One will keep your prequalification offer for 30 days. You can use your offer at the dealership up to the date of expiry. After that, you’ll need to submit another application form.

Capital One

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The fine print

Capital One makes information readily available on its website. It clearly outlines the application process from start to finish, including terms related to loan amounts and other financing terms. On its auto loan page, Capital One has a detailed frequently-asked-questions section that offers transparent information. Before you even decide whether to get preapproval, you can use the calculator on their auto loan page to see how much you could be paying.

Here are also a few other things to note:

  • You can’t purchase Oldsmobile, Daewoo, Saab, Suzuki or Isuzu vehicles with Capital One financing.
  • Auto financing is based on a simple interest loan. Your payments will be applied to interest first, then the principal. If you pay more than the minimum monthly payment, the money will go toward interest, outstanding fees then the principal.
  • You may need to provide additional documents before finalizing your loan. Capital One offers borrowers the option to upload these items before going to the dealer, or bring them along when purchasing the vehicle.
  • The Auto Navigator website can’t guarantee that the dealer will have the actual car and sale price advertised. You’ll need to ask the dealer about availability.
  • Once you purchase a vehicle, it’ll become a retail installment contract, stating that the dealer is the original creditor.
  • You may need to put down cash if the total cost of the vehicle is more than your maximum loan amount. This includes the amount after you trade in a vehicle, if applicable.

Comparable auto loans

LendingTree

With LendingTree, you can fill out one short online form and see real interest rates and approval information at once. There are hundreds of lenders on LendingTree ready to compete for your business. Some lenders will do a hard pull on your credit and this is normal within the auto lending space. Keep in mind that multiple hard pulls will only count as one pull, so it is smart to have all your hard pulls done at one time.

LendingTree

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PenFed

This credit union requires you to become a member in order to apply for an auto loan, but it’s easy to join. All you need to do is to make a one-time donation to the National Military Family Association for $17 or the Voices for America Troops for $17. Then, you’ll need to fund your share account with a minimum of $5.

PenFed offers rates as low as 2.49% APR for new cars and as low as 3.49% APR for used auto loans, both loan amounts are from $500 - $100,000. Terms range from 36 to 84 months for used vehicles and 36 to 72 months  for new ones. Rates depend on how much you finance and what term you choose.

If you’re looking for lower monthly payments, PenFed offers a Payment Saver auto loan for new and used vehicles. You can make a lower payment than a conventional auto loan, but at a higher interest rate. You’ll pay back the remaining balance at the end of your loan. For new vehicles, they must never have been titled and be the current or prior model year. For used vehicles, it can be anywhere from the prior two years up to the current model and can’t exceed 15,000 miles per year.

PenFed Credit Union

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Lightstream

A division of SunTrust Bank, Lightstream offers loans for new and used cars with terms ranging from 24 to 84 months (two to seven years). It offers APRs from 3.99% with a loan amounts $5,000 - $100,000. This APR only applies to those who are enrolled in automatic payments. If you don’t enroll in autopay, you’ll pay an extra 0.50% APR. Your actual rate will depend on the financing term, the amount you take out and your credit history.

You can use the funds for any type of vehicle, with no restrictions on the dealership or the model, make or mileage on the car. You can also use the loan to purchase new or used motorcycles, lease buyouts and vehicles from individuals. Unfortunately, you can’t get a preapproval, meaning you’ll need to complete and submit a loan application online. The benefit is that if you’re approved, you may be able to receive the money within one business day.

Lightstream offers a guarantee that you’ll love their service. If not, they’ll email you a questionnaire for you to fill out within 30 days of loan closing. Once completed, they’ll deposit $100 into your account.

LightStream

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Bank of America

Bank of America is one of the largest banks in the U.S. and it provides a wide variety of banking, investing and loan products and services. Their auto loan program is for dealer purchases, lease buyouts and purchases from another individual. You can’t use their financing for recreational or commercial vehicles. If you’re not purchasing a vehicle from a private party, Bank of America only allows you to purchase cars from franchise dealers or one of their approved independent dealers.

Rates for their loans start from 3.54% APR for new cars, 3.74% for used cars. If purchasing a car from an individual, you can apply for a private party loan by visiting a financial center. Preferred Rewards clients are eligible for a rate discount. Gold customers get a 0.25% discount Platinum 0.35% and Platinum honors a 0.50% discount. You can choose from loan terms from 12 to 75 months, but you can only choose either a 48-, 60- or 72- month option online. Once you submit your application, you can contact Bank of America to request a different loan term.

You will need to borrow a minimum of $5,000 (or $7,500 if you reside in Minnesota or South Carolina). The vehicle you intend to finance can’t have more than 125,000 miles, be older than 10 calendar years or valued below $6,000. Once you apply, Bank of America claims you’ll get a response within 60 seconds. If approved, your rate remains valid for up to 30 days.

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U.S. Bank

US Bank offers loans for new and used vehicles with rates starting at 4.59% APR for online and branch applications. If you are an existing U.S. Bank customer and set up automatic payments from a U.S. Bank consumer checking package account, you’re eligible for a 0.50% rate discount. For used cars, you can only finance a car six years old or newer and with no more than 100,000 miles.

If you intend on purchasing an eco-friendly car, you may be able to save some money by taking advantage of the Green Auto Loan Rate discount. This is only for new or used EPA-certified SmartWay vehicles. These include hybrids or high gas mileage cars. You will get a 0.50% rate reduction once you set up automatic payments from a U.S. Bank package and complete the Green Vehicle Affidavit. You can find out which cars qualify by using the EPA Green Vehicle Guide.

With all loans, you do need to pay an origination fee, which can be anywhere from $50 to $125 or up to 1% of the financed amount, depending on your state.

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Bottom line

Capital One’s Auto Navigator program is best for those who want a competitive rate on new or used vehicles. For those who have a good credit history and are in a sound financial situation, there’s the added benefit of no prepayment penalties. That way, if you choose to pay off your loan early, you won’t need to pay extra. If you already have a car in mind, Capital One is still a great option to consider, as long as the dealership is on their approved list. With its easy online application process and the ability to tweak the terms of the loan, Capital One offers great terms and rates. However, if you’re not considering buying from an approved dealer, or if you’re looking at commercial or recreational vehicles, you’ll want to look elsewhere.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Sarah Li Cain
Sarah Li Cain |

Sarah Li Cain is a writer at MagnifyMoney. You can email Sarah Li here

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Reviews

Rising Bank Review: Savings and CD Rates

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Year Established1906
Total Assets$1.9B
LEARN MORE Rising Bank’s secure websiteMember FDIC

Rising Bank is a brand-new, online-only bank that got started in 2018. However, it traces its roots all the way back to 1906, when a charter was issued to its parent bank Midwest BankCentre, known at the time as Lemay Ferry Bank. Midwest BankCentre is a community banking leader in its home of St. Louis and Rising Bank was designed to expand the reach of its parent bank.

Although Rising Bank is a division of a long-established bank, as a new entity itself, it offers a limited roster of accounts. For example, you still can’t open a checking account at Rising Bank as of February, 2019. Your savings and investment options are limited to three types of CDs and one type of savings account.

As an online-only bank, you can only open Rising Bank accounts online. The process involves providing basic personal and financial information, confirming your identity, funding the account, and submitting the completed application. Information you’ll be required to provide includes your name, email address, phone number and Social Security number, along with information about the bank you’ll be using to fund the account.

Here’s a look at the limited roster of Rising Bank account offerings, including information such as minimum balance requirements, monthly fees, and other features and benefits.

Rising Bank’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

2.45%

Savings

Rising Bank High Yield Savings Account

2.10%

American Express National Bank High Yield Savings Account

on American Express National Bank’s secure website

Member FDIC

2.85%

CD Rates

Rising Bank 1 Year Term CD

2.75%

Goldman Sachs Bank USA High-yield 12 Month CD

on Goldman Sachs Bank USA’s secure website

Member FDIC

2.95%

CD Rates

Rising Bank 2 Year Term CD

2.90%

Synchrony Bank 36 Month CD

on Synchrony Bank’s secure website

Member FDIC

3.00%

CD Rates

Rising Bank 3 Year Term CD

3.10%

Goldman Sachs Bank USA High-yield 5 Year CD

on Goldman Sachs Bank USA’s secure website

Member FDIC

Rising Bank’s savings account options

High-Yield Savings Account

This account is the only savings account option in the Rising Bank lineup.
APYMinimum Balance to Earn APY
2.45%$1,000
  • Minimum opening deposit: $1,000
  • Monthly account maintenance fee: $0
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

Rising Bank’s High-Yield Savings account is the bank’s only savings account option, but it makes up for this limitation by offering a quality product. There’s no monthly maintenance fee with the High-Yield Savings account, and the minimum opening deposit requirement is quite low for a high-yield product. The high rate offered by the account is paid on all amounts above the $1,000 minimum deposit requirement, with no tiers paying additional interest on larger deposits. While not affecting most customers, there is an account maximum of $500,000.

The High-Yield Savings account is strictly a savings-only product. There is no ATM access with this account, and the account cannot be overdrawn. Interest is paid monthly, and deposits are FDIC-insured up to the insurance limit.

As with all Rising Bank accounts, you can sign up for online banking for free and access your High-Yield Savings account online 24/7.

How to get Rising Bank’s savings accounts

As an online-only account, the High-Yield Savings account can only be opened online. The process involves providing basic personal and financial information, confirming your identity, funding the account, and submitting the completed application. Information you’ll be required to provide includes your name, email address, phone number, and Social Security number, along with information about the bank you’ll be using to fund the account.

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How Rising Bank’s savings accounts compare

Rising Bank only has a single savings account option, but it is exceptional. With no fees, a low minimum opening balance requirement, and an extremely high yield, Rising Bank’s High-Yield Savings account is tough to beat. In fact, the rate paid is not only well above the national average, it’s higher than some of those offered by the nation’s best available savings accounts.

Rising Bank’s CD account options

Term CDs

Rising Bank’s Term CDs are for customers saving for a goal at least one year away.
APYMinimum Balance to Earn APYTerm
2.85%$1,0001 year
2.95%$1,0002 years
3.00%$1,0003 years
  • Minimum balance to open account: $1,000
  • Minimum balance to earn APY: $1,000
  • Early withdrawal penalty: 90 days’ interest for terms of one year; 180 days’ interest for terms of two years; 180 days’ interest for terms of three years

Rising Bank’s Term CDs are straightforward, with limited options. You can only open a regular Rising Bank CD for one year, two years, or three years. Each maturity has the same $1,000 minimum to open and to earn interest. However, all CDs also have a $500,000 maximum.

Early withdrawal penalties are either 90 days or 180 days on these Term CDs, depending on the maturity selected. For each maturity, interest is credited every three months. All CDs are FDIC-insured up to the insurance limit and renew automatically upon maturity. Upon notice of maturity, funds can be withdrawn within a 10 calendar-day grace period.

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on Rising Bank’s secure website

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Jumbo CDs

Rising Bank’s Jumbo CDs are for larger deposits only.
APYMinimum Balance to Earn APYTerm
2.95%$100,0002 years
  • Minimum balance to open account: $100,000
  • Minimum balance to earn APY: $100,000
  • Early withdrawal penalty: 180 days’ interest

These Jumbo CDs are even more limited in scope than the bank’s Term CDs, with just a single, two-year maturity available. As a jumbo CD, you’ll have to deposit at least $100,000 to open the account and earn interest. Early withdrawal penalties amount to 180 days’ interest.

As with the bank’s regular Term CDs, interest is credited every three months, all CDs are FDIC-insured up to the insurance limit and there’s a $500,000 account maximum. Jumbo CDs automatically renew unless funds are withdrawn within 10 calendar days after maturity date.

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on Rising Bank’s secure website

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Rising CDs

Rising CDs is the name that Rising Bank dubs its bump-up CDs.
APYMinimum Balance to Earn APYTerm
2.85%$25,00018 months
3.00%$25,00036 months
  • Minimum balance to open account: $25,000
  • Minimum balance to earn APY: $25,000
  • Early withdrawal penalty: 180 days’ interest for 18-month maturity; 180 days’ interest for 36-month maturity

Rising Bank’s Rising CDs come in two maturities — 18 months and 36 months. The CDs require $25,000 to open the account and earn interest, which is compounded every three months. The twist with these CDs is that you can bump up your CD rate once per term if rates rise. Additionally, you can deposit additional funds into a Rising CD one additional time during your original term; this additional deposit must be at least $5,000.

As with other Rising Bank CDs, Rising CDs automatically renew unless you withdraw your funds within 10 calendar days after maturity. Rising CDs are also FDIC-insured.

How to get Rising Bank’s CD accounts

As mentioned above, you can only open a CD account online. You’ll need to provide personal and financial information, including a funding source, along with your Social Security number and identifying documents.

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on Rising Bank’s secure website

Member FDIC

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How Rising Bank’s CD accounts compare

All of Rising Bank’s CDs pay rates well above the national averages. Currently, there’s no advantage in ponying up the $100,000 required to open one of Rising Bank’s Jumbo CDs, as those 2-year CDs pay the same rate as the bank’s ordinary 2-year Term CDs. However, regardless of which Rising Bank CD you select, you’ll be earning an excellent rate. The bank’s 1-year CD is one of the best CD rates in the country, and the 2- and 3-year Term CD rates are not far behind.

Overall review of Rising Bank’s products

Rising Bank is not the institution you want to bank with if you need comprehensive financial planning and products. However, if you have selective needs and only want the best available accounts, Rising Bank might have some valuable offerings for you.

Money market accounts, IRAs and checking accounts are not available at Rising Bank, at least as of February 2019. But the high yields offered by the bank’s High-Yield Savings account and its three types of CDs are enough for even the most dedicated yield chasers. Carrying no monthly account fees and reasonable minimum deposit requirements, these products offer the complete package, with yields right at the top of their class, across the board.

Rising Bank’s bump-up CD, dubbed the Rising CD, starts customers at a top-tier interest rate right off the bat while still allowing them to raise the rate one time during the CD’s term. In fact, customers with at least $25,000 to invest are better served in the bank’s Rising CDs than its Term CDs, since both types of account pay the same initial rate but the Rising CDs offer the potential to raise that rate even further. Terms apply.

The bottom line is that Rising Bank may not be a one-stop shop that can cater to your every financial need. But if you’re just looking for low-cost products with some of the best rates in the nation, Rising Bank has a lot to offer.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

John Csiszar
John Csiszar |

John Csiszar is a writer at MagnifyMoney. You can email John here

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Reviews

Review of Netspend Prepaid Card

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

If you cannot get a traditional bank account, you may have few options but to manage your money via a prepaid card. That’s where companies like Netspend come in. Netspend issues prepaid cards which allow you to receive your paycheck, government benefits and tax refunds via direct deposit. You can also use Netspend to pay bills, conduct financial transactions online, track your spending automatically via Netspend’s app and complete most other tasks you would be able to with a traditional checking account. In this review, we’ll explain what Netspend has to offer, fees and fine print and how it compares to other prepaid options out there.

Netspend Prepaid Card features

Your name is embossed on your card. If a cashier ever asks you for an ID to match to your card, but your card says “Valued Customer” or something of the like on it in lieu of your name, you could be denied the purchase. It would also prevent you from receiving funds via MoneyPak, and could cause other disruptions in your financial life. The fact that the Netspend Prepaid Card has your name printed on it alleviates a lot of friction.

Free direct deposit. If you want to receive your paycheck, government benefits or tax refund on your Netspend card, you can do so at no cost.

You will also be able to use the app to send money to anyone with Netspend FlashPay. While the app does offer mobile check deposit, there may be fees charged by the service provider Netspend partners with in order to enable this feature. That being said, Netspend does not charge any fees for this service directly.

Cashback rewards. Netspend issues these rewards when your spending lines up with sponsored offers, which are preselected for you based on your spending habits.

NetSpend also has a refer-a-friend feature which rewards you both with a $20 when your friend uses your referral link to open a new card and loads at least $40 onto it.

High-yield savings account. As long as you’re not currently subject to IRS backup withholding, another perk Netspend offers is access to a savings account with an APY of 5.00% for balances under $1,000. This can be a huge perk for those who are having trouble opening a bank account as it could potentially establish a more positive banking history. Beyond that, the APY is phenomenal.

Netspend Prepaid Card fees and fine print

Monthly fees range from $5 to $9.95 per month. Although the Netspend Prepaid Card comes with a lot of benefits, it comes with a lot of fees, too. Different plans will incur different monthly fees. For example, the FeeAdvantage Plan, which allows you to circumvent a $1 charge for every purchase requiring a signature and a $2 fee for every purchase requiring a PIN, will run you $9.95/month. If you have a regular direct deposit of at least $500/month set up, you qualify for the Netspend Premier FeeAdvantage Plan, which does the same thing at a much lower price point of $5/month.

Reload fees can sting. While there are no activation fees or check deposit fees charged by Netspend, you will have to contend with reload fees everytime you want to put cash on your card.

Lots of miscellaneous fees. There are fees if your purchase is declined, fees if you want to stop a pre-authorized payment, ATM fees, foreign transaction fees and account inactivity fees should you let your account sit for 90+ days without any transactions, withdrawals or deposits.

Checking your balance via text, email or your online account center is free. However, checking via ATM or a customer service agent will incur a $0.50 fee. You will also be charged this fee if you make a balance inquiry via the automated telephone service, though the $0.50 fee is waived in this instance if you have a Netspend Premier FeeAdvantage Plan.

Overdraft protection plan is limited. While you can opt into overdraft protection to protect yourself from declined purchase fees, you will have to go through the steps of enrollment in the program first. You will only be allowed three overdrafts per calendar month, and each one will cost you $15. Unless you’re getting your purchases declined 15 times or more per month, this service may not be worth it.

Try not to lose your card. If you lose your card, there is a $9.95 fee to replace it. If you need your replacement card within less than seven business days, you will have to pay $20 to $25 in shipping costs depending on how quickly you need it.

NetSpend Prepaid Card Fees
Activation feeNone
Monthly Plan FeePay-As-You-Go Plan: None; FeeAdvantage Plan: $9.95/month; Netspend Premier FeeAdvantage Plan: $5/month
Reload feeVaries depending on location and deposit type.
Check deposit feeNone
ATM fees$2.50 at domestic ATMs; $4.95 at foreign ATMS
ATM decline fee$1.00
Foreign transaction fee3.5% of withdrawal or purchase in USD, in addition to the $4.95 foreign ATM fee
Account-to-account transfer fee$4.95 when initiated by customer service representative
Bill payment feeVaries
Stop payment fee for ACH debit/preauthorized payment transactions$10
ACH debit/Preauthorized payment transaction decline fee$1
Card replacement fee$9.95
Balance inquiry fee$0.00 to $0.50 depending on plan and modality of deposit.
Account inactivity fee$5.95/month after your account has been inactive for 90 days

Using the Netspend Prepaid Card mobile app

Netspend’s mobile app allows you to deposit checks via mobile, send or receive money from anyone with Netspend’s FlashPay and find the lowest-cost reload locations near you.

If you’re looking for the more advanced budgeting features some financial institutions offer to their mobile users, you’re out of luck. But you will still be able to monitor your account balance and transaction history.

Opening a Netspend Prepaid Card Account

Ordering a card is easy and can be done online You simply provide your name, address and email and your card will be shipped to you in 7-10 days.

However, in order to activate your card, you’ll have to meet some eligibility requirements. First, you must be 18 years of age and not live in Vermont. You will also be required to verify your identification by supplying your name, address, date of birth and government-issued ID number. In some cases, Netspend will require you to provide your actual ID in order to verify your identity.

Your credit history and checking history will not be run as a part of the application process.

Overall review of Netspend Prepaid Card Account

There is no way around it: Netspend Prepaid Cards are loaded with fees that will eat into your paycheck or any other source of income. If you can get a traditional checking account, you should as it is extremely likely that it will be leagues cheaper to manage your money.

However, Netspend isn’t built for those who can easily get a bank account. It is built for those who have been shut out of the traditional financial system. If you need a way to get your money into digital form to conduct financial transactions, cards like Netspend’s can be one of the few ways to take care of business, despite the dramatic fees. A better option would be to find a prepaid card option with lower fees, like Walmart’s Bluebird by American Express Prepaid Debit Card or the Chase Liquid Prepaid Card.

Do note that if your employer offers to pay you via a prepaid card, you do not have to accept. Specific laws vary by state, but regardless of where you live, your employer must give you the option of either a paper check or direct deposit. If you have access to a bank account, it’s likely not to your advantage to accept your paycheck via prepaid card. If you don’t, you may still choose to use cash checking services if they end up being cheaper than the fees on a card like Netspend’s Prepaid Card.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Brynne Conroy
Brynne Conroy |

Brynne Conroy is a writer at MagnifyMoney. You can email Brynne here

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