Are contract-free cell phones a good deal?

Verizon, AT&T and T-Mobile offer cell-phone service without a two-year contract, which may sound like a good deal. But a Consumer Reports study urges people to dive deeper.

In a study of 78 options offered by 12 different carriers, Consumer Reports found that being contract-free is not always a bargain.

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

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, that same family would pay $6,540.

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

T-Mobile's no-contract deal is even better for the family of four: $5,600. They'll save even more if they bring their own phones. 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 the phones is the best deal.

Other deals for individuals worth checking include NET10's and Straight Talk's no-contract plans.

However, be aware if you don't bring your own phone, you'll have to pay full price for the phone up front.