Jan 27, 2012 – Yesterday, an alliance offering a new affordable prepaid debit card, the AARP Foundation Prepaid MasterCard, was announced in Monrovia, CA. The partnership between the AARP Foundation and Green Dot Corporation said that they are honing in on assisting those Americans that are approaching retirement age with a flexible, lower cost prepaid card. This comes in response to a new federal law requiring that all beneficiaries of Social Security will be paid electronically by March 1, 2013.
The press release stated that the prepaid debit card will work ideally for those consumers that already choose to electronically direct deposit their company pay check or federal benefits payments, such as Social Security. Additionally, the announcement said that the card account will be FDIC protected, will cost nothing to purchase and the typical monthly maintenance fee of $5.95 can be waived with a monthly direct deposit of $250. If direct deposit is currently not an option, then a $1,000 cash load or a minimum of 30 “qualifying” monthly transactions must be posted for the fee to be waived. A linked savings account option will be made available as well.
Given the lack of financial resources available to many U.S. citizens over 50, the partnership endeavors to assist older Americans by providing a tool for better money management, powerful purchasing power and increased retirement savings wrapped up in one safe, secure prepaid card. The AARP Foundation Prepaid MasterCard will be issued by The Bancorp Bank pursuant to license by MasterCard International Inc., and may be used everywhere MasterCard prepaid debit cards are accepted.