Overdraft fees are the devil. You know, the $20 and sometimes now, $30 dollar fees your bank charges when you make a transaction and don’t have the funds to cover the bill. See, the wonderful thing about capitalism is that there will always be a business person excited to take your money in exchange for a new, competitive service. That new competitive service is prepaid debit. If you’ve never had an overdraft fee, bless your heart. If you’re like many others, you have had one or a few, and maybe even have a chronic problem and could really benefit from a prepaid debit card that won't let you overdraw your account. If you have a chronic problem, let me remind you how self-defeating it is to borrow from yourself every month while paying the banker that fee for the loan you are giving yourself.

I had this exact chronic problem, until about three years ago I was fed up with seeing my money pay the banker’s salary. And, if you’re losing your house, your job, or your sanity just trying to save some money then it just might be time for you to say goodbye to your bank and switch to prepaid debit as well.

Prepaid debit cards offer you the convenience of debit, the speed of direct deposit, the manageability of online banking/bill pay, and access to cash through an ATM. If you were a customer service worker at any business, you probably wouldn’t be able to tell the difference between a direct debit card and a regular debit card. These prepaid debit cards have become more and more popular in the US just as prepaid cellular providers have seen waves of new subscribers.

Prepaid services get an undue bad rap. Sure, some people turn to prepaid services because they have poor credit. Others, though, turn to prepaid services because they are competitive, offer excellent customer service, and here’s the big one: they don’t allow you to spend money you don’t have. When a company doesn’t have you tied into a contract, believe me, they also tend to work harder to keep you as a customer.

Prepaid debit cards put the power back in the consumer’s hands; that is exactly where your bank doesn’t want it to be. If you normally have on average just one overdraft fee a month, you will almost certainly be saving money with a flat rate direct debit card over your free banking account. And, if you typically have two or more overdraft fees every month, you will be able to put that $40-$80 into savings each month and sleep better at night.

Most prepaid debit cards offer some basic perks of membership. Wired Plastic, for example, offers points per purchase towards prepaid cell phone usage. I’ve had a Wired Plastic card for about three years. I don’t use the cell phone points I earn, personally, but I do cash them in and send them to friends as gifts. It feels nice to give talk time to my friends and I’m sure it feels nice to get a free cell phone bill every once in a while, too.

I also have a NetSpend account. This account costs more to maintain but also offers an automatic or manual savings account option. The savings rate isn’t spectacular, but show me where you can find one that is right now anyway and I’ll be your friend. I closed my money market account and signed up for this service because the NetSpend savings rate was higher.

Prepaid debit accounts usually offer different fee schedules. You’ll want to think ahead a little and decide how much you’ll be using the card. If it won’t be often, you might opt for the per use plan where you are charged for each transaction (usually a $1-$2). If you will use the account more often, you can opt at any time to switch to a flat rate. My Wired Plastic flat rate is $3.95 per month. I only pay for PIN and ATM transactions; as long as I run the card as credit at the point of sale I can avoid any extra per use fees. This is one of the lowest cost direct debit plans I have been able to find. My NetSpend account is $9.95 flat rate per month, so right now I am opting for the per use plan on this because I won’t use it enough to justify the expense of a flat rate and because I’m mostly using the account for savings.

These fees might seem sharp compared to your free checking account, but it is well worth your time to evaluate the fee schedule at your bank, and shop around for prepaid debit cards. Even if you don’t intend to close your bank account, dealing with them less feels really good. That’s true especially at a time when they seem to be stealing more than earning the money.

If you’re trying to stick it to the man by avoiding a certain bank, make sure the bank or a subsidiary isn’t running the prepaid debit operation you are considering. Most prepaid debit accounts are not FDIC insured. You will not want to put tens of thousands of dollars in these accounts.

Prepaid debit cards require you to have the cash up front. You can either load the card with direct deposit, or at a Western Union or other cash advance type business. Direct deposit from your employer is the only free way to load most of these accounts.

Also, be sure to check your prepaid debit card’s fee plan before you sign up. You can rack up the fees here, too, if you use an account too much, the wrong way, and/or on the wrong fee plan. ATM fees are just about as bloated as the out of network ATM fees your bank probably charges, so be sure to minimize ATM withdrawals by making maximum sized withdrawals, or avoiding cash all together. The fees I listed here may change between the time I publish this article so and the time you start to shop so be sure to read carefully.