best debit cards with no fees
Introduction
In comparison to credit cards, debit cards are an important tool for managing personal finances because they let you make transactions with real money in the bank accounts without having to borrow. For most debit card customers, the downside opens with straight fees for things like lead transactions and outright fees for ATM withdrawals, foreign transactions, and even account maintenance.
Problem
Debit cards are easy to use but they introduce so many hidden charges that will drain your account little by little. Let’s highlight some of the most common types of fees that frustrate cardholders:
- Monthly Maintenance Fees: Some of these banks from which you can withdraw money charge you for even having an account with them.
- ATM Fees: These fees can pile up whether it is using an out-of-network ATM to withdraw some cash while in another country
- Foreign Transaction Fees: In the case where you are buying anything online, an international vendor may charge you a transaction fee of roughly 3% per transaction.
- Overdraft Fees: Even if the overdraft is an accident, Main Street Bank’s overdraft fees are between $30 and $35 for each incident.
- Inactivity Fees: If you do not activate a debit card account within the given duration, you may have to part with an inactivity fee.
Any of these charges might not appear a lot at one go, but if you look at it monthly, it will amount to hundreds of dollars. That’s the problem: there are somehow unnoticeable small fees that one cannot avoid, as one chips away at earned money.
Agitation
First of all, debit cards provide us with immediate control of our funds. There are times when it seems as though you’re being penalized just for using your account for an emergency and necessary ATM withdrawal or a spontaneous impulse buy while on a business trip.
Secondly, the transparency surrounding these fees is often lacking. Many consumers don’t realize how quickly ATM fees or foreign transaction fees accumulate until they’ve already lost a chunk of their money. This leaves many people feeling blindsided by unexpected charges.
Finally, overdraft fees are especially painful. Overdrawing your account is often an honest mistake, but banks frequently capitalize on this with exorbitant fees. A simple mistake like swiping your card for a $5 coffee can turn into a $40 expense if you’ve accidentally dipped into the red.
Solution
Here are the best debit cards with no fees currently available:
Chime Debit Card
Chime has quickly become one of the more recognized no-fee debit card providers, so there must be a reason why.
Key Benefits:
- No Monthly Fees: To our knowledge, Chime also doesn’t charge any monthly maintenance fees.
- No Overdraft Fees: Overdrafting up to $200 with their SpotMe feature means that you can take money even if it might take you some time to pay it back.
- Fee-Free ATMs: Chime currently provides fee-free access to more than 60,000 ATMs spread across the United States, including MoneyPass and Allpoint ATMs.
- No Foreign Transaction Fees: Whether you are on the move or enjoying cross-border internet shopping, you won’t be charged other hidden costs.
Case Study
According to a survey by an American Neobank called Chime, their average customers spend $300 annually on fees compared to the users of traditional banks. It is real money that could be saved in the pocket, not go to the bank in terms of fees for services or otherwise.
Ideal For: Users who prefer to avoid paying fees and to do it easily often do frequent travel withdrawals of cash.
Axos Bank Debit Card
Axos is another online bank that has a strong no-fee debit card service.
Key Benefits:
- No Monthly Maintenance Fees: Similar to Axos Chime, Chime does not require charges for having an account with them.
- Unlimited ATM Reimbursements: This is a unique feature for ATMs. Banks will refund any charges made on an ATM regardless of whether it is from the same bank or belongs to another bank. This makes it ideal for people who deal with ATMs most of the time.
- No Overdraft Fees: Axos also does not have overdraft fees.
- No Foreign Transaction Fees: Axos does not charge foreign transaction fees.
Case Study
Travelers using Axos were able to save $180 on average on ATM and foreign transaction fees every year.
Ideal for: people who are more frequently traveling or who occasionally prefer to withdraw money from other banks’ ATMs.
Discover Cashback Debit
Unlike most clothing purchase companies, Discover’s debit card is even more attractive as it provides cash back on your purchase, which is usually only seen in credit cards.
Key Benefits:
- Cashback on Purchases: Get a chance of getting 1% cash back for purchases you make using our debit card for a maximum amount of $3,000 on a monthly basis. Just for using your debit card, you can get up to $30 back for every month.
- No Monthly Fees: Discover offers a great opportunity with no recurring monthly charges for maintenance or service.
- No Overdraft Fees: Discover does not allow overdraft fees, therefore putting you in a safe space where you will not be charged any fees without your knowledge.
- No ATM Fees: More than 60,000 of the fee-free ATMs are located in the United States.
Case Study
Data suggests that general spending cardholders using debit cards for regular purchases such as groceries, fuel, and eating out earn approximately $240 per annum in cashback apart from the benefit of no charges.
Ideal for: debit card customers who would like to receive some extra benefits from their purchases.
SoFi Money Debit Card
SoFi Money is available for fee-sensitive consumers. This is how SoFi positions itself as a kind of account that provides checking as well as savings facilities.
Key Benefits:
- No Account Fees: These are as follows: no monthly fees, no minimum balance charges, and no overdraft charges.
- Fee-Free ATM Access: Allpoint is AllSoFi has a partnership with Allpoint and subsequently, it is free to access over 55,000 ATMs.
- No Foreign Transaction Fees: Good for global travel since SoFi does not include foreign transaction fees.
Case Study
The customers who used SoFi’s card also said they have saved an average of $200 a year on foreign transaction fees and ATM fees.
Ideal for: Passengers and individuals who need a combination of checking and saving account facilities without charges.
Charles Schwab Bank Debit Card
Even though the company is best known for its investment services, the high-yield investor checking account it offers has one of the best no-fee debit cards.
Key Benefits:
- No Account Fees: No monthly maintenance checking fee, no overdraft checking fee, and no requirement for minimum balances to be kept in the checking account.
- Unlimited ATM Fee Rebates: One of the best aspects is that Charles Schwab will even refund all international ATM fees on a worldwide basis.
- No Foreign Transaction Fees: Using this card, you will not incur an additional fee when using the card to make purchases abroad.
Case Study
Schwab debit card users who travel often internationally claim to be saving up to $400 yearly in terms of ATM fees plus charges for using their cards internationally.
Ideal for: global travelers and especially those who carry out transactions that require the use of ATMs overseas.
FAQs
What are free debit cards with money on them?
Free debit cards preloaded with money allow users to make purchases without fees.
Do free debit cards with money on them charge any fees?
No, these cards typically come without monthly or transaction fees.
What banks offer free debit cards with some money loaded on them?
You can apply online with certain institutions or for a promotion.
Can I reload money onto a free debit card?
Yes, many free debit cards allow reloading via bank transfer or direct deposit.
Is there a limit on transactions with free debit cards?
Most free debit cards have daily transaction limits, which vary by provider.
Conclusion
If you want a debit card that doesn’t have any fees or want some cash back, you can get whatever type of debit card you want. To sign up for one of these no-fee debit cards, you will be skipping all those fees, which are so unhealthy for your wallet and which translates to good financial health for you.