Paypal has a great interest rate on its money market account and I'm thinking of transfering my savings from ING to paypal for this purpose. Paypal is not FDIC insured. Should I really be worried about it not being insured?
2007-12-23 03:12:08 · 2 answers · asked by Rickls 2 in Business & Finance ➔ Personal Finance
Not FDIC insured would not worry me, most money market accounts through companies are not. Ford money market being one. It's .5% difference right now, is that worth it for you? Good chance Paypal rate will come down as ING's has.......
2007-12-23 12:52:47 · answer #1 · answered by pumpdatiron 6 · 0⤊ 0⤋
They will pay you an interest payment every month, deposited to your account. The interest payment will be 1/12 of 5.21%. For a hundred dollars, that would be 43 cents a month. Since it's compounded monthly, after a year you would have about 6 or 7 dollars in interest. I have used Paypal money market account with no problem. It's a good place to stash your cash and make interest. And you can make ACH transfers back and forth to your checking account with no charge, although it does take 3 or 4 days. Unlike many money market funds, with Paypal there is no account minimum and no penalty for making frequent withdrawals. Money market accounts, although not FDIC insured, are very safe. I have never heard of anyone ever losing their money in a money market account. The safety of the money market account does not depend upon whether Paypal stays in business or not. The money is invested in very safe short term bonds, usually US government bonds. By law, money market funds must invest in triple-A rated bonds, the safest possible bonds.
2016-05-26 00:51:50 · answer #2 · answered by ? 3 · 0⤊ 0⤋