Pay Pals 4.3% interest on balances

[Gr8ful]

Has anyone tried Pal Pals 4.3% on balances with them? Looks like a good place to park extra $$ but I want to hear if anyone has tried it & how you liked it, Thanks!

 

[mpruet]

I rarely use PayPal so don’t know the ends and outs of it. But how do you withdraw funds from PayPal? The only time I’ve used it was to pay for a specific purchase. Can you withdraw the money to pay for an emergency or a credit card bill? I’m not sure that I would consider PayPal to be a bank.

 

[Gr8ful]

You can just transfer it to or from a bank acct or a card. I've used pay pal for years without a problem.

 

[WanderingRose]

I have also used PayPal without problems for years, to make specific and automatic payments, but would not establish savings with them, just on principle.

 

[Happy Camper]

As someone that has to deal with PayPal over the years since it was created, I don't have fond feelings for the company.

They tend to do with your money what they prefer and when they prefer. The customer service will lean strongly in their favor in a dispute. More than you'd normally have when dealing with a bank or other real financial institution. They tend to be disingenuous with their clients. And it's been this way since it was created.

The fact that they are partnering with a real bank should give you FDIC coverage. But please double and triple check the fine print. This is the PayPal way. Did I mention they aren't quite trustworthy? And that they have been hacked a number of times?

I strongly strongly recommend finding a bank, online or with locations, that has a comparable or better interest rate. This is just a super quick list I found in 30 seconds. With better rates.

https://www.nerdwallet.com/best/banking/high-yield-online-savings-accounts

 

[Gr8ful]

Thanks HC! Paypal has always always settled in my favor & I'm set up with them but they ARE NOT FDIC insured. If I choose another it will be Am Ex, Thanks Again!

 

[Happy Camper]

Thanks HC! Paypal has always always settled in my favor & I'm set up with them but they ARE NOT FDIC insured. If I choose another it will be Am Ex, Thanks Again!

If you were buying on eBay, they will almost always settle in your favor. It's a business decision on their part. There are plenty of sellers. But buyers put actual money into their system. So it's much more important to keep them happy.

It's a shame.

 

[WanderingRose]

I have had a couple of payment issues with PayPal vendors, which PayPal has promptly acted on and in my favor.

 

[Happy Camper]

I wanted to post this article as a follow-up. This is something I didn't know, and is worth considering when looking into how much money you want to move into a savings account.

https://www.marketwatch.com/story/the-dark-side-of-high-yield-savings-accounts-d4b37c0b