PayPal Finance Question

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Sg4

Digital Media Guru
Nov 18, 2006
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Move to 'Shooting the Shit' if need be.

Heres the question. PayPal gives you a 5.04% competitive return on the balance of your account if you apply for the debit card. I was thinking about throwing a couple of grand into my PayPal account so I'd be earning an extra $100 a month or so.

Would this be a really bad idea for any reason? Has anyone done something similar with ING or similar service? I want to start earning a serious interest on my cash. I'm open to suggestions. Hopefully this question will help others as well.
 


Never leave money in PayPal you can't afford to loose.

And no the pp debit card is just a debit card. The market fund is more of what your looking for. If you're really antsy to get a decent return on you money go Bank Deals - Best Rates and Deals or sign up for a 5.05% hsbc account.


By leaving your money in PayPal your inviting them to find a reason to freeze your account.
 
I've had an online hsbc account for about a year now, interest is good. Comes with a free debit card, bank to bank transfers. Very easy to use and security seems to be their #1 priority.

I'd definitely choose something like that over paypal.
 
I wouldn't do that if I were you....

Paypal is no substitute for a bank. Paypal is merely a payments processor. As such they are not subject to either national or international banking regulations. Banks are very strictly regulated (in the US) by the FDIC, OCC, and Treasure Department. It's hard for a bank to just freeze your account, take your money, or not follow through on promises due to the regulators that they must adhere to. Paypal, on the other hand, is fully capable of freezing your account, confiscating your funds, or not paying out promised funds just because they CAN. There's plenty of horror stories out there about people's Paypal accts getting frozen for no good reason - or just because somone lied about the account owner out of spite and had their acct frozen. Their APY is not competitive enough to warrant the additional risk you will be incurring by maintaining a Paypal balance to generate interest. If you really want to earn ~5% APY and still have liquidity then listen to other poster's advice and open up an acct with HSBC or similar BANKING INSITUTION.
 
plenty of horror stories at paypalsucks[dot]com. I myself lost a few hundred pounds ^^, i wouldnt trust them with anything you can afford not to be in the paypal account
 
droolingmnky said:
Never leave money in PayPal you can't afford to loose.

And no the pp debit card is just a debit card. The market fund is more of what your looking for. If you're really antsy to get a decent return on you money go Bank Deals - Best Rates and Deals or sign up for a 5.05% hsbc account.


By leaving your money in PayPal your inviting them to find a reason to freeze your account.
Click to expand...

In the past paypal screwed me over for about 4k..so i completely agree
 
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