Can you save with no-contract cell service?

HOUSTON (KTRK) -- Verizon, AT&T, and T-Mobile now all offer cell-phone service without a two-year service contract.

It may sound like a good deal, but Consumer Reports studied 78 options, offered by 12 different carriers, and found that being contract-free is not always a bargain.

Contract-free cell service used to be the hallmark of upstart prepaid carriers.

"With no-contract deals you typically get lower monthly charges, but the plans can charge hefty price tags for the phones themselves," said Consumer Reports' Margot Gilman.

Consumer Reports compared cell phone plans for three types of people - an average, single-user; a low-use couple; and a high-use family of four.

In all cases, Verizon is more expensive without a contract than with one. For the family of four, the contract-free "Edge" plan costs more than $7,200 for two years of service and four new iPhones. With a two-year contract, the same family would pay $6,540.

With AT&T, the family of four would actually save money by choosing the no-contract service agreement.

T-Mobile's no-contract deal is even better for the family of four at $5,600. They'll save even more if they bring their own iPhones. The price goes down to $3,364.

"Your phone has to be compatible with the new network, and you'll need to switch out the phone's SIM card for a new one, but that can cost little or nothing," Gilman said.

As for the low-use couple and the individual user, Consumer Reports says Consumer Cellular's no-contract service with installment payments for phones is the best deal.

Other deals worth checking are Net-ten's and Straight Talk's no-contract plans. However, if you don't bring your own phone, you'll have to pay full price for the phone up front.