I like the idea of receiving a return on what I keep in my PayPal balance, but how safe is doing this? Is it safe to keep a lot of money in my PayPal account (which I have had hooked up to two credit cards and two bank accounts for a good amount of time already). Generally, I drain my PayPal account bi-monthly - but I'm reconsidering perhaps leaving money in it?

You should look into one of the online savings banks like ING, Emigrant Direct, HSBC, etc. Really good rates, no minimum balance, etc.

Yes, ING is good. I have had a savings account with them for quite sometime now. However, their turnarounds are really slow. I have had it take up to a week and a half to get my money deposited into my checking account from ING. Their minimum is 3 days, but that is only an estimate. So, if you need your money in a hurry, don't tie it up in ING. They are paying about 3.75% right now on savings which is really good compared to my local bank. So if they are slow, at least you get more interest!

Chester

Actually, you should look at emigrant and hsbc who are offering 4.25%

Pay Pal is a great idea, i have been using it for 2 years with no trouble at all, cometitve interest rates, easy on line access to your acct info., sending money and its owned by e-bay.

~Bob~

As far as your money being secure or insured through Paypal's money market account, its not. Although I signed up for it (just for the heck of it) I do recall the warning that it is not, here it is:

Unlike checking accounts, money market funds are neither insured nor guaranteed by the FDIC or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 USD per share, it is possible to lose money by investing in the Fund. Distributed by Funds Distributor, Inc. To learn more about the Fund and its expenses, read the prospectus carefully.

Sounds scary! Go with whatever bank insures the amount. I don't even think the yield is guaranteed.

Sorry to bump an old thread... but has anyone actually used this? What do you think of it? Ever lost any money? It kinda seems too easy, which is what scares me.

I've decided to bite the bullet and try the Money Market Fund. I put $100 in. I'll reply to this topic in about a month to see how it went.

Hi,

I have been using paypal from last 4 years (may be more).... But never ever got any interest on my funds.? Does paypal paypal pays interest on our money???

I had a issue with paypal ... twice.

1) I had $xxx in my account.. i logged in saw all is gone only $7 was left. it said i bought some online books and CD's.... but never ever got any such stuff. I made a formal complain to paypal guys and it took one month after which they looked in to the matter and said "Sorry we cant help you"!!. I am from INDIA even then tried calling them many times and was put on HOLD for xxminutes.

2) I did one project for US client. All was done and got payments via paypal. so i delivered the project as well. I got a email saying client has asked for refuund and amount was back in his account. Nor client nor Paypal guys return back with reply to my emails etc.


So i think keeing payments in paypal is a bit danger.

Also as we are from INDIA we cant have online US bank accounts so that we can link to paypal and get funds transfered to that as and when we need to invest.

If any one has any ideas on it do let me know.


Regards

Take that money OUT of Paypal!! Always keep Paypal empty.

I used to be enticed by the high MM rates there, but those people can take your money any time they want and there's not a thing you can do about it.

If you do a transaction with someone for an item, and then 2 weeks after they get it, they don't like it, all they have to do is file a complaint with Paypal. Your money is locked up for at least 2-3 weeks while there is an "investigation".

I don't need that hassle. Try ING Direct.