Monday, May 5, 2008

PayPal Money Market Fund

I mentioned that I opened a PayPal account in my post about my first eBay experience. As a result of various transactions, I now have a small balance at PayPal. This PayPal balance does not earn any interest unless it is put into the PayPal Money Market Fund. This sweep is not automatically set up. Currently, the fund pays a little less than 3% APY. While this is not spectacular, it is better than the 0% you get for doing nothing.

I have not yet setup the PayPal Money Market Fund. Deposits are not FDIC insured, so I have hesitated. Does anybody use the PayPal Money Market fund? I am interested in getting some feedback before I decide.

DC

1 comment:

Will said...

I have the PayPal Money Fund and have had it for a couple of years.

Yes they say it's not insured, yes they say you could see the value go down.

In the years I've had it, I've always recieved my interest. Interest is currently at 2.33% which is excellent compared to a savings account right now of .01%. That's right, Wells Fargo is paying 1/10 of 1 percent interest.

As for not being insured, I think the only way you can lose your money is if PayPal goes out of business. What's the odds of that happening?