Why Are Prepaid Phone Plans Cheaper – Cost Savings Explained – Are the prepaid carriers you’re looking at able to advertise at a lower cost? Or is it better to go with a major carrier and get a free phone every two years?
So which one is better? Get a cheaper prepaid plan and pay more out of pocket for your phone? Or pay a higher monthly rate with a major carrier and get a free phone every two or three years.
Why Are Prepaid Phone Plans Cheaper – Cost Savings Explained
That’s $20 less than T-Mobile’s cheapest plan, Essentials Saver, which costs $50 a month. In this example, using Mint Mobile will save you $240 per year.
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That’s $40 less than Verizon’s cheapest plan, Unlimited Welcome, and saves Visible $480 a year.
And on the AT&T network, you can buy a 30GB plan from Red Pocket for $30 a month. That’s a $420 annual savings compared to AT&T Unlimited Starter.
When you work with a prepaid carrier like Mint Mobile, US Mobile, or Red Pocket, you must purchase an unlocked device from the manufacturer.
This means you can buy an unlocked iPhone 14 from Apple for $829. Get the Pixel 7 Pro for $899 direct from Google. Or buy the Galaxy S23 from Samsung for $799.
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Mint Mobile gives you 6 months of free service when you buy the phone, but the iPhone 14 still costs $829 in full.
When you go with a major carrier like T-Mobile, Verizon, or AT&T, phone prices can vary dramatically.
All major carriers are offering free iPhone 14, Pixel 7 Pro or Galaxy S23 when you trade in your old device.
These phone exchange offers were previously only available to new users. However, existing customers can also take advantage of the same promotion. T-Mobile has launched New In Two with its Go5G Plus plan, promising existing customers a free new phone every two years.
A Comparison Of The 5 Best Prepaid Phone Plans Out Now
For example, right now, new users can get the iPhone 14 for free. Existing customers only received $440.
Customer loyalty doesn’t seem to be a factor in the Verizon deal. New customers usually get better deals.
When a new iPhone is released, Verizon often matches T-Mobile and AT&T to offer new and existing customers a free new iPhone.
Getting a free new iPhone from Verizon or AT&T every three years saves you $16.94 a month online.
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Assuming you get a free iPhone every 2-3 years from T-Mobile, AT&T, or Verizon, how does the total monthly cost compare between postpaid and prepaid plans when factoring in the price of the phone?
The same story is happening at Verizon. Here’s a comparison of Verizon’s postpaid and prepaid per-line costs.
If you go with the prepaid plan, you’ll save $45 per year and $600 per line.
T-Mobile, Verizon and AT&T offer multiple discounts. How do these discounts affect the price and which plan is better?
Cheap 5g Phone Plans: From $30/month
Prepaid phone plans can save you about $200 to $1,030 (not a typo) per year compared to postpaid.
My three favorite options are Mint Mobile’s 15GB plan on the T-Mobile network, US Mobile’s Unlimited Starter plan on the Verizon network, and Red Pocket’s 20GB plan on the AT&T network.
Postpaid cell phone packages are cheaper if you have three or more lines, and in some cases, I think it’s better to get prepaid now.
Looking at T-Mobile’s plans, you can see that Mint Mobile’s 5GB and 15GB plans are still the cheapest.
Is It Cheaper To Buy A Phone On A Plan Or Outright?
For most people, I think it’s worth paying a bit more to upgrade to the T-Mobile Go5G Plus plan.
It is full of features. Unlimited Premium data includes 50GB of website data, 4K video streaming, 15GB of free roaming data in Canada and Mexico, and 5GB of free international data to over 215 compatible destinations. This includes a free Netflix subscription and Apple TV+.
Yes, even if you know how much data each line uses, you can save money by using Mint Mobile or another prepaid carrier.
But for a lot of people, I think the features, benefits and advantages that the Go5G Plus offers, as well as the inclusion of truly unlimited data, will make it a better choice.
Mobile Phone Plans
Verizon’s next-gen cell phone plans are so expensive that it still makes sense to go with a prepaid carrier.
And smart data-conscious shoppers can save $1,094 a year on US Mobile’s 12GB shared data plan.
With unlimited data, 3GB of website data, unlimited high-speed data roaming in Canada and Mexico, and more, it’s a great price.
The real savings with AT&T Unlimited Starter is that you get a free new phone every three years, equaling the best deals on AT&T devices.
Postpaid Plans Vs. Prepaid Plans: Which One Is Actually Cheaper?
AT&T Unlimited Starter offers a single-line plan and three phone lines for less than $50.
Of course, you can save over $500 a year by opting for Red Pocket’s 5GB annual plan. But I think a lot of people are starting to use more than 5GB of storage, and maybe a lot of people don’t want a full year of service.
Currently, many discounts on the following paid plans provide free and low-cost phone options.
Verizon’s plans are still more expensive than prepaid, so you can save a lot of money by using a prepaid carrier.
Best Prepaid Phone Plans For September 2023
Three of my favorite four-line plans are T-Mobile Go5G Plus, US Mobile Unlimited Starter, and AT&T Unlimited Starter.
Verizon plans are still quite expensive. You can save over $345 a year with US Mobile’s Unlimited Starter plan.
My top three picks out of five lines are T-Mobile Go5G Plus, USA Mobile Unlimited Starter, and AT&T Unlimited Starter.
Stetson graduated from Ithaca College in 2019 with a BA in Communications Management and Design. He started a senior project at his school. He loves helping people find great, affordable cell phone plans that fit their needs. When Stetson isn’t reviewing cell plans on his YouTube channel or website, he’s out in the fresh Colorado air playing board games with friends or competing in epic pickleball tournaments. Sometimes in this article and video, I want to share with you Verizon wireless postpaid, review costs, and compare the prices of other prepaid wireless services.
Best Cheap Cell Phone Plans For September 2023
This year, I signed up for a Verizon Wireless postpaid account for a few months to try out the service and see how it differs from the prepaid wireless service I normally use. I opted for the new Verizon Small Plan with unlimited talk, text and 2GB of high speed data. According to my calculations, the total cost for the month was $59.37. If you read or watch my YouTube channel, you will immediately know that you can pay $60 per month for 2GB of data per month, or you can get faster data with a $60 per month prepaid wireless plan.
Verizon lists the price of the Verizon Plan Small at $35. $20 is on top of the Line Access fee, and that sounds great until you raise the price to $55 a month. Add $1.99 in tax and $2.38 in tax for $59.37.
Breaking down the additional fees, the $1.99 breaks down to $0.55 in federal universal service fees, $0.21 in regulatory fees, and $1.23 in regulatory fees. These fees are costs you pay Verizon, but some are charged by the FCC to Verizon. My bill of $2.38 includes Massachusetts sales tax and the state e911 fee. These fees are determined by my state, if you live in another state you can see the sales tax rate and any additional state, county or local taxes and fees.
When comparing the prices of prepaid and wireless services, keep in mind that prepaid plans do not offer the same features as paid plans. Data speeds may vary, and prepaid plans may not offer all the extra features of postpaid plans, such as hotspots and Wi-Fi calling. Always check the prepaid plan details to make sure it includes features that are important to you.
Best Prepaid Cellphone Plans Of 2023
When I compare my new Verizon Small Plan to Verizon Prepaid, it’s easy to see that you can get less or more service for the same amount. In this case, we are mainly comparing the amount of high-speed data included in the monthly plan. With Verizon Prepaid, you can get unlimited talk and text bundles and 3GB of high-speed data for $40. That’s 19.37 cents less on the dollar than Verizon was paying. Prepaid plan price with MA sales tax