Anyone using Paypal Money Market Fund?

[duskdawn]

I have been seeing that option of "Earn a Return on Your PayPal Balance" for a while in my paypal account but never tried.

When you sign up for the Fund, your PayPal balance will translate into shares of the Money Market Fund, though the function of your PayPal account will not change. You will be assigned shares of the PayPal Money Market Fund automatically, and you will begin to earn monthly dividends. In addition to dividends, you are entitled to participate in events such as shareholder proxy votes.

The current yield is 3.99%*

Can anyone using this give me a quick idea? Like is this 3.99% monthly or yearly? Is there any risk of this? It seems I might lose money according to what they stated, is there any limitations or just signed in and get the divident every month? I have no idea about this.

Thanks for your input.

 

[Steen]

3.99% isn't a bad rate if it's similar to a savings account. HSBC is paying 4% currently I believe, ING, 3.5%.

 

[DNGeeks]

Using paypal is a risk, and anything to do with them would also be included in that risk.

wow, what happened there?

 

[Rarethings]

DNgeeks: lol

A buyer purchased 150$ worth of items from me on ebay. I shipped the products, buyer filed a CB. After negotiating with paypal, they placed the funds on hold, and then gave them to the buyer.

I was going to try paypal's money market, but trust me. Stay away from paypal.

 

[DNGeeks]

You're right. People MUST remember that paypal is NOT a bank, and there is no one to regulate what they do, other than a court. Paypal is abused daily by people (phishing/hacking), paypal closes accounts and holds funds for months with little to no reason and there is little recourse to getting your money back in case of any problems.

3.5% is a lot better than 3.99% and the posibility of losing your account.

 

[friday]

Paypal is very high risk and will remain so until they have some form of bank status. They will leave you high and dry if you have a problem. In particular, Paypal completely fails when payments are made for services through them. If anything goes wrong you are completely and utterly screwed, at least with a credit card company you have 30 days to file a chargeback.
I use them like any other company, only keep in your account the bare minimum essential for small services & what you can afford to loose.

Find a real bank to earn interest on your money.

 

[768768]

There are many problems with PayPal as others have stated. But to answer one of your questions, it's paid monthly.

 

[Jernet]

i have been with paypal for 5 years. have a feedback of 250+, and never one problem. you can say good or bad about anything these days....

not too mention the cashback they pay if you use the debit card. made over $300 back just for using my own money last year. not a bad deal.

 

[sjaguar13]

I use the Money Market thing with one of my Paypal accounts. I don't keep a lot of money in my account, though. Like everyone above said, Paypal can lock your account. I had my account locked once, and it took a few months to get back. Because of that, I try not to keep a lot of money in it, just enough for things which have to be paid by Paypal, but no credit cards. If I have the money for more than a week, I withdraw it to my banking account to be safe. I had several chargebacks from people who bought stuff and RECIEVED the items. Paypal will always favor the buyer. It's a pain to file the appeal and go through all that, so if I take the money out and someone files a chargeback, Paypal cannot take the money from me. I just have to make sure I never get paid by anyone else because Paypal can take that. But back on topic, I get about $1 a month from the Money Market thing. If you read the Paypal page about it, it says it is possible to loose money from it.