Walmart MoneyCard vs Netspend Debit Account

2 Debit Accounts with Different Strengths and Weakness

Both the Walmart MoneyCard and Netspend Debit Account offer consumers online accounts without the perks of more traditional bricks and mortar banks. Customers who have direct deposit with both can access their funds up to at least 2 days early. Both also offer savings account though they have different rates (APY). Walmart does allow you to deposit and withdraw cash for free at Walmart stores whereas with Netspend, you have to find a retail partners that will allow you to deposit and withdraw cash (most of the time for a fee).

In this comparison, we will look more closely into both the Walmart MoneyCard and Netspend Debit Account and highlight which is better.

What is Walmart MoneyCard?

The Walmart MoneyCard is a demand deposit account that works like a check card or debit card. It resembles a traditional checking account and the debit card that is provided is also reloadable. Money that is deposited in the Walmart Money Card is handled by Green Dot Bank and FDIC insured. You will be given a debit card that can either be a Visa or Mastercard, which can be used anywhere Visa or Mastercard is accepted. Like many such accounts, you can set up direct deposits with the Walmart Money Card and get them a couple of days early. Payroll direct deposits can be accessed up to 2 day early, government benefits up to 4 days early and Federal tax refunds up to 5 days early.

The Walmart Money charges no monthly fee if you have a direct deposit of at least $500 the previous month. Otherwise, you have to pay a $5.94 monthly fee. Customers who have set up and receive ongoing direct deposit and activated their Walmart MoneyCard Debit Card can activate "overdraft protection" of up to $200. You do have to pay a $15 overdraft fee and cover up the overdraft within 24 hours.

The Walmart Money Card allows you to earn cash back in the following ways:

• 3% cash back at walmart.com or on the Walmart app
• 2% cash back at Walmart fuel stations
• 1% cash back at Walmart stores

The Walmart Money Card has no partnerships with any nationwide ATMs. Therefore, you will have to pay the ATMs fee if you withdraw money from ATMs using the Walmart MoneyCard. However, you can withdraw cash from any Walmart stores for free. And you can deposit cash using your Walmart app at Walmart stores for free as well. If you do not use your app, then there will be a $3 fee for cash deposits at Walmart stores.

What is Netspend Debit Account?

The Netspend Debit Account and Debit Visa Card is also a demand deposit similar to the Walmart MoneyCard. Money that is deposited into the Netspend Debit Account is also handled by Green Dot Bank and FDIC insured. You can set up direct deposits into your Netspend account, load money at reload retail partners and even get Federal tax credit deposited in your account. Direct deposits through netspend (be it payroll, government benefits or federal tax refunds) can be accessed up to 2 days early.

Netspend allows you to open a high yield savingsa account which you can link to your debit account. The account main bank is either Pathway N.A. or Republic Bank and Trust, both of which are members of FDIC and your funds are FDIC insured. You will earn 6% APY for the first $2,000 in the savings account. Amount above $2,000 will earn 5% APY.

Netspend charges a $5 monthly fee and it cannot be waived. Netspend also has an overdraft protection that works slightly different from the Walmart MoneyCard. Netspend customers have a buffer of $10 and the overdraft protection kicks in above this amount. Netspend charges $20 for earh overdraft and you are allowed up to 5 overdrafts a month. If you top up your account and make it whole within 24 hours, you will not be charged the overdrarft fee.

Netspend has a cash back rewards program called Payback Rewards, which allows you to earn cash back from different partners. These cash back are personalized and you can find out what cash back is available to you on your app.

Netspend has no partnerships with any nationwide ATMs so you will have to pay a $3 fee if you withdraw cash from an ATM. You can deposit cash at participating reload centers and retailers. Some are fee-free whilst others are not.

Similarities

Both provide early pay for various direct deposits

Both the Walmart Money Card and Netspend Debit Card provide 2 days early pay on payroll direct deposit, government benefits and Federal tax refunds.

Both have savings account

Both the Walmart Money Card and Netspend have savings account though Netspend has a higher APY.

Both do not have fee-free ATM networks

Neither the Walmart Money Card nor Netspend partners with any ATM network. Hence, you always have to pay a fee if you withdraw cash from an ATM. However, you can withdraw cash for free with the Walmart Money Card at Walmart.

Differences

Walmart Money Card Waives Monthly Fee with Direct Deposts

Though both the Walmart Money Card and Netspend Debit Card charges a montly fee, the Walmart Money Card will waive it if you set up a direct deposit of at least $500.

Walmart has free cash deposit at their stores using your app

While Walmart charges a $3 fee for cash deposits at their store, it is free if you use your mobile app at Walmart. With Netspend you have to deposit cash at reload locations (some are free and some charge a fee).

Walmart Money Card has Free Cash Withdrawals

Though ATMs will charge either the Walmart Money Card or Netspend for cash withdrawals at ATMs, you can withdraw cash without a fee at Walmart MoneyCenters and Customer Service desks.

Netspend is compatible with PayPal

You can transfer funds easily from PayPal to Netspend as long as you link your Netspend account in your PayPal account. Fees may apply depending on where you choose to transfer your funds from (credit card, debit card or bank account - ie from your PayPal account).

Though you can transfer money from PayPal to Walmart Money Card, you need to perform an additional step. You would first need to find out the issuing bank name, ABA routing number and your personal ACH number. You do this by loggin into the Walmart Money Card website and following the process of a bank transfer reload. Save the information and add that as a bank to your PayPal account.

Up to 5 Days Early for Tax Refund with Walmart Money Card

While both Walmart Money Card and Netspend Debit Visa allow you to receive tax refund, Walmart Money Card allows you to get your Federal Tax Refund up to 5 days early. You can also get your Federal tax refund to Netspend. But you will only get them 2 days early.

Up to 4 Days Early for Government Benefits with Walmart Money Card

If you receive government benefits through direct deposit with Walmart Money Card, you can get access to them up to 4 days earlier. While you can direct deposit your government benefits with Netspend, you can only get access to them 2 days early.

Netspend has a high yield savings account

Netspend has a high yield savings account that pays up to 6% APY. In contrast, Walmart Money Card does not have any high yield savings account.

Walmart Money Card allows you to earn cash back

Walmart Money Card allows you to earn cash back from Walmart purchases including Walmart Fuel Stations and purchases online and from their mobile app. In contrast, Netspend does not have a cash back program.

Which is better?Walmart Money Card or Netspend?

Both Walmart Money Card and Netspend are online bank account that provides you with a debit card to use. It is really targeted at those who do not have regular bricks and mortar banks. Though they are quite similar in their function, they differ in many ways and depending on your situation, one might suit you better than the other.

Walmart Money Card is better for you IF.......

The Walmart Money would be better for you if

• You shop at Walmart often - This goes without saying because you can earn cash back at Walmart stores, online and also at their gas stations if you have their Money Card. In constrast, Netspend has no cash back program.


• If you do not intend to have your payroll direct deposited into your Walmart Money Card - If you do not intend to have your payroll direct deposited into either the Walmart Money Card or Netspend, then the Walmart Money Card would be the better choice because it is fee-free and you do not have to meet any requirements. In contrast, Netspend will charge you a $5/month fee unless you have a direct deposit with them.


• You receive government benefits through your Walmart Money Card - Though both the Walmart Money Card and Netspend will give you a 2 days early pay on your payroll direct deposit, Walmart will give you 4 days early access to your government benefits that are deposited in your Money Card (versus just 2 days early for Netspend). Tax refund through the Walmart Money Card can also be accessed up to 5 days early compared to only 2 days early for Netspend.


• You value free cash deposits and withdrawals - Walmart allows you to deposit cash for free at Walmart if you use their mobile app (if not, the charge is $3). You can also withdraw cash for free at Walmart. Netspend requires you to withdraw cash at ATMs which charge a fee. You can load cash into Netpend at their reload centers (some do not charge a fee).
  
  

  Netspend is better IF.....

  • If you are looking high APY in savings account - If earning a higher APY in a savings account is important to you, then you would want to go with Netspend instead of Walmart. That is because the Netspend Savings Account will pay up to 6% APY compared to only 2% for the Walmart Money Card.
    
    

    To Sum Up: Walmart comes out ahead

    I will end this comparison and give the edge to the Walmart Money Card for it's lack of fees (without any preconditions), it's better early pay on direct deposits and ability to deposit and withdraw cash for free at Walmart. I would only choose Netspend over the Walmart Money Card if you value the higher savings rate over the other better features that the Walmart Money Card has.