Wednesday, November 14, 2012

Fifth Third enters prepaid debit card market

Fifth Third Bank announced Wednesday that it is jumping into the prepaid debit card market, joining an increasingly crowded field of banks and retailers targeting lower-income customers who don't want a traditional checking account.

The Access 360° card has a fee schedule in line with the rest of the industry. There is a $7 monthly service fee, which is cut to $4 if the customer puts at least $500 on the card per month. Customers do not need to pay to reload the card. A $25 deposit is required to get a card.

Prepaid debit cards have grown in popularity over the last year as banks have increased fees and minimum balance requirements. Walmart is well known for its prepaid cards and other financial services. 

Banks have recently been fighting back by offering their own products. Wells Fargo and Regions Financial have rolled out their own prepaid cards in recent months.