If you click a link with an * to go through to a provider, we may get paid. This usually only happens if you get a product from it. This is what funds our team of journalists, and keeps us free to use. Yet there are two crucial things you need to know about this.
- This never impacts our editorial recommendations – if it's in, it's in there because we independently rate it best.
- You'll always get as good a deal (or better) than if you went direct.
For a more detailed explanation see How MSE is financed.
Prepaid cards
Alternatives to credit or debit cards
If you're unable to get a bank account, or want a simple way to limit your spending, then a prepaid card is worth considering adding to your wallet. There's no credit check to pass and you can only spend or withdraw the amount you add to it. This guide has full information, alternatives and our top-pick cards.
First, a quick overview of prepaid cards...
In essence, prepaid cards are quite basic – they allow you to load money onto them, which you can then spend. They can be a good alternative to a debit or credit card, as you can only spend what's on the card and you'll need to have it loaded in advance.
Top-pick newbies' prepaid cards |
|
Link goes direct or read full Clubcard Pay+ review |
- Minimum age: 18 - Annual fee: none |
Links in pop-up go direct or read full Ode review |
- Minimum age: 18 - Annual fee: £2.99 (waived in year one) - How to manage: online / app |
Link goes direct or read full Hyperjar review |
- Minimum age: 16 - Annual fee: none - How to manage: app |
The full prepaid cards guide...
Now we've given you a brief overview and you understand the basics, let's take you through prepaid cards in more detail...
What is a prepaid card?

A prepaid card is essentially a pay-as-you-go debit card. The way these cards work, is that you add money to the card, which can then be used in most places where card is accepted, including online and cash withdrawals. You can only spend the money you've loaded to it, so there's no risk of getting into debt or pricey overdraft charges.
There's also no hard credit check involved, so could be a lifeline if you're unable to get a bank account due to a poor credit history or if you're lacking proof of address – though see our Basic bank accounts guide first for the top easiest-to-get accounts.
What are the pros and cons of a prepaid card?
Prepaid cards come with their own set of advantages and disadvantages...
Pros:
Good for budgeting. You can only spend what's loaded on the card, so it's harder to overspend.
Convenience. Like debit and credit cards, prepaid cards are widely accepted.
No credit check. Unlike credit cards or bank accounts, prepaid cards typically don't require a credit check, making them accessible to individuals with limited or poor credit history.
Cons:
Fees. Many prepaid cards come with fees, including activation fees, monthly fees, reload fees, ATM withdrawal fees and inactivity fees. Try to look for cards with low or no fees so more of your cash stays with you for spending. We've more info on these below.
Limited protection if things go wrong. Your money on the card isn't protected in the same way it would be in a bank account under the Financial Services Compensation Scheme, plus you may have fewer rights to refunds if things go wrong. We've more info on both these potential issues in the need-to-knows below.
You don't build a credit history. Using a prepaid card (even if you manage it well) won't help you boost your chances of getting credit in future, as your usage won't be reported to credit reference agencies. See Credit building credit cards and Best first credit card if you've a limited credit history.
You can't use it for all transactions. Some services, such as car rentals and pay-at-pump fuel, may require a credit card (or at least a debit card). See below for how to get around this.
What types of prepaid card are there?
There are three main types of prepaid card, suiting different purposes:
- Everyday spending. Best used as a substitute to debit or credit cards as a simple way to stick to a budget – the focus of this guide. They can also be useful if you've a history of poor credit and can't get a debit or credit card.
- Travel and overseas use. Offers near-perfect exchange rates for your travel money with no or low fees to spend or withdraw cash abroad. See Prepaid travel cards for full information and our top picks.
- Under-18s. Cards that allow teenagers to spend in stores and online, while still giving parents a certain level of control. Our Top cards for under-18s compares the best cards and children's bank accounts.
MSE weekly email
FREE weekly MoneySaving email
For all the latest deals, guides and loopholes simply sign up today – it's spam-free!
Prepaid card need-to-knows
If you think a prepaid card is right for your wallet, here are our key need-to-knows to consider before getting one.
Try our free Credit Club
Sign up to MSE's Credit Club to boost your credit power – access our free tools to see how the financial world views you, including:
- An Eligibility Rating that combines your credit score, affordability, and market trends.
- View your full credit report – your financial CV.
- Get personalised acceptance odds for credit cards and loans.
How to choose the best prepaid card for you?
-
Fees. Some cards will have a monthly fee – is it worth the price? Others will charge specifically for withdrawing from an ATM or making transfers. Consider what you'll use the card for and ask whether you'll be getting your money's worth. We've more info on prepaid card fees here.
-
Going abroad? If you plan on using a prepaid card for your travel money when you're on holiday, get one that can convert currency ahead of time and avoid ones that charge for spending or withdrawing in foreign currencies. Here's our full guide to Prepaid travel cards.
-
Alternatives. Ask yourself if you really need a prepaid card. Unless you're struggling to get accepted for a standard account with a bank or building society, you could well be better off with a bog standard debit card. See our Basic bank accounts guide for accounts aimed at those with low credit scores.
Top-pick prepaid cards
Here are our top prepaid cards suitable for everyday spending in the UK, based on the lowest fees and/or perks. For other uses, see our guides on Prepaid Travel Cards and Cards For Under-18s.
Account info: - Minimum age: 18 |
No-fee prepay card that also lets you collect Clubcard points.The Clubcard Pay+ card from Tesco Bank is our top-pick as it has no charges and gives ongoing rewards. It also comes with a round-up feature which rounds your spends up to the nearest pound and sets the difference aside in a separate account (for example, 80p on a £2.20 spend). This function can be switched off or on in the app.
You'll need to have (or get) a free Clubcard to get it. It then pays one point for £1 spent at Tesco and one for every £8 spent outside.
This prepaid card has nothing to do with Tesco's similarly named Clubcard Plus subscription service, which costs £7.99/month. |
Account info: |
Decent pick if you work in charity, education or healthcare (including carers), though watch out for fees.If you work in one of these sectors, the Ode prepaid card gets you cashback at over 70 retailers, including Asda, Boots, Sainsbury's and Waitrose (though do note you can't withdraw cash on this card from ATMs). After an initial £5 top up to get the card, you can add extra credit (min £10) to your card online or via its app with the funds available instantly. After the first year, a £2.99 annual fee kicks in, so diarise to cancel if you find you're not earning much cashback from it. There's also a £5/mth inactivity fee after 12 months of no usage, so make sure you cancel before that kicks in. |
![]() HyperJar* Account info: - Minimum age: 16 - Annual fee: none - How to manage: app |
No monthly fee and a variety of budgeting features – though usage fees can apply and the card can't be used at ATMs.The HyperJar card* allows you to set up 'spending jars' and 'shared jars' within the app, to help you budget, though you can't withdraw cash using this card. You also get cashback when buying vouchers for various retailers, including Amazon.
There are a few limits to be wary of. For example, transferring money out to a bank is fee-free four times a month. Loading the card with less than £10 is free just once a month, though you can add loads of £10+ fee-free 10 times a month. If you exceed any of these limits, you'll be charged £1 a time. |
Important. The providers above are authorised by the Financial Conduct Authority. Any money you deposit in Clubcard Pay is covered by Tesco Bank's FSCS protection. For Ode and HyperJar, it's ring-fenced in a separate bank account, so if there are problems with the provider, the money's safe (though it wouldn't be if the underlying bank went bust, so it's best not to leave large balances on these cards, just in case).
Cashback sites may pay you for signing up
As an extra boon, members of specialist cashback websites can be paid when they sign up to some financial products. Do check that it's exactly the same deal though, as terms can be different. Remember, cashback is never 100% guaranteed until it's in your account.
Full help to take advantage of this and pros & cons are in our Top cashback sites guide.
MSE weekly email
FREE weekly MoneySaving email
For all the latest deals, guides and loopholes simply sign up today – it's spam-free!
Have your say in our forum!

Spotted out of date info/broken links? Email: brokenlink@moneysavingexpert.com
Clever ways to calculate your finances