Power Sellers Unite

psunite · Joined: 27 Jan 2005 Posts: 6206 Location: Columbus OH

I know the smart thing to do is drain your money out of paypal as soon as you can. But PayPal currently has a money market that is yielding 5.04%
I am lucky to get 1% from my savings account.

Has anyone here had any experience with the money market account at paypal. It looks tempting but there is a risk. First one is that its paypal and the second one is the below disclaimer.

"An investment in the Fund is not insured or guaranteed by the Federal Insurance Deposit Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund."

lammergeiernet · Joined: 01 Feb 2005 Posts: 1007 Location: Canada

I think this service at one time was Paypal's core service when it was x.com ,I would have tried it back in those days for a lark. They would not allow Canadians an I've lost interest since.

Why bother?

Deposit your Paypal funds to your bank then upload it to an Amex Savings Account , for example n Canada currently at 2.4 % ,No minimum balance requirements,and a member of Canada Deposit Insurance Corporation.

Half the interest ,without the bone crunching fear of a frozen account for 6 months and sitting on hold for days.

ING has a service like Amex Savings account , there are plenty of services out there that offer ok interest with low balances and low fee transfer perfect with using with a flow of Paypal funds.

Also could join an online brokerage ,to get some promotion offers bank may not offer you ,then upload to your brokerage , buy index funds which take alot of the thinking and stress out of it.

I would do that before trusting Paypal

ASLANstore · Joined: 20 Apr 2006 Posts: 704 Location: MidWest

I'm signed up with the money market on PayPal... I've seen pretty regular payouts too - nothing extra-ordinary, because as suggested, i drain my account frequently - not wanting to "keep" funds in that volatile account lol.

I think I remember seeing a payout as much as $2.15 once - typically tho I'm getting 15 cents here and there... and as i recall, the sign up was semi-laborious. Had to fax copies of SS, ID etc

lammergeiernet those are great suggestions - excellent pointers - however, my nickle and dime financial "portfolio" (and I use the term loosely lol) is not quite near justification for such planning.

..and as far as the disclaimer goes - I don't think it's detailed enough! I mean, sure I can lose money on my investment - in other words, my investment may not produce a return (that's the loss) - but I don't think I will LOSE money in a real hard sense (unless I am childishly naive - and that's probable)... but as far as I know, that sort of disclaimer is pretty standard on all investment packages - nobody guarantees a return, do they?

Marty

lammergeiernet · Joined: 01 Feb 2005 Posts: 1007 Location: Canada

Honestly it just sounds more complicated then it is and every little thing helps

We often cry over 2% here or 2% there deducted from our work and understand how much that slows our progress , then more often then not scoff when the 2% is in our favour.

Its best to take a few small bites in our own favour as the forces out there certainly have no qualms to take thier bites out of our work ! :wink:

Eastwood4460 · Joined: 28 Jul 2006 Posts: 235

I've been using the money market since I've had an account. I don't keep much money in there but it is nice to make a return on it. The lossing money disclaimer is similar to many bond or mutual funds. There are also some internet accounts that are also offering 5% return right now if you look around.