Some of the differences between prepaid cards and checking accounts include being charged more monthly fees with prepaid cards, having free financial services with checking accounts and paying to load money onto a prepaid card, notes Bankrate. Prepaid cards may be a better option for customers who frequently overdraw funds.
While customers are charged monthly fees with both prepaid cards and checking accounts, fees are often higher with prepaid cards, according to Bankrate. Examples of free financial services that are often included with checking accounts include access to ATMs, bill pay and customer service. One advantage of prepaid cards is not paying $35 or more for overdrawing small amounts of money from a checking account.