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Paypal Money Market = Safe + Good?

D

DAWeinG

Platinum Member
Was wondering if anyone tried paypal's Money market program where you earn a current 2.24% return on whatever you have in your paypal account. I read the details and it said you could lose money. I'm wondering if anyone has tried this and is safe. I sure as hell don't want to lose more money especially after going on a spending spree in hot deals forum. And those paypal fees are a !@#$. So anyone tried this and is happy with the returns?
 
2.24 % is incredibly sucky..throw that in with the fact that you can lose money and it is beyond sucky.
I get 3% on my checking account alone, and 5% on my money market account at my credit union.

I would imagine that there is better places to invest online that guarantee alot better rate than 2.24.
 
I would be kinda careful when you put in your money into pay pal..
first they are not really a bank... they are not FDIC insure so.. if you put in all your life savings in it and pay pal files Chp. 11 you are $hit out of luck
 
Actually I believe the people doing the money market fund for pay pal ARE a bank. I used to have 5.25% on my money market, and 3.00% on my checking but, now they are 3.00% and 1.75%....
 
I've been using the paypal mm & debit card for months with no problems. I've NEVER lost money as a result of mm performance. Granted, I only keep maybe a few hundred bucks in there. The convenience of paypal is well worth the risk IMO.
 
We use PayPal as a payment method for our online store and never lost any money as a result of mm performance either. But we usually move the money from PayPal to our business account every other day and only keep a few hundred $ in our PayPal account.
 
Its not a good return but better than nothing if someone is going to keep alot of money there from doing lots of transactions. I'd be worried mostly about paypal going out of business though. I don't know how much money they are making and how solid their revenues are but it wasn't long ago that they placed tighter restrictions on the amount that can be received for free within a months period.

If they go out of business I doubt your money is fdic insured, as with a bank.
 
Hi,

Users in the Money Market have their money with Barclay's. In the unlikely event of a bankruptcy, users could go to Barclay's for the money (if they are in the Money Market).
 
Hey, it's the bot! I never really think about the Money Market as anything more than a pleasant accident. I keep money in Paypal so I can use it to pay for auctions or whatever. And that's good enough for me. The Money Market is just icing on the cake. Good job Paypal!

Except for that time when you screwed me by telling me nothing could be done after a buyer took my money then emptied his Paypal account...
 
In the unlikely event of a bankruptcy, users could go to Barclay's for the money (if they are in the Money Market).

So the money would be in the account holders name and not in Paypals name?
 
Hi,

The Money, technically, is held by them. So users could go there for the money. In addition, to reduce the possibility of a problem for users in the unlikely event of a bankruptcy, we do keep operating expenses and user monies separate. While this is no guarantee, as normal bankruptcy laws apply to all organizations, we do a fair amount to reduce the potential for problems should the unlikely event occur.
 


<< I get 3% on my checking account alone, and 5% on my money market account at my credit union. >>



Nitemare,

If you are currently getting 5% on a money market account, your credit union is losing their ass.



<< in the unlikely event of a bankruptcy >>



Anybody else notice how frequently dotcoms have used the word "unlikely" over the last 18 months. All the while, over a hundred fail each day.

At least if PayPal goes public they will no longer be able to hide their financial condition. Makes me wonder, though. They landed $90 million in private financing a few months ago. Why the sudden need for an IPO?

Russ, NCNE




 
Russ - I doubt that it is a sudden need for an IPO. It also is pretty usual to get additional funding, build the company up a little more, and then go public. At least I can see Paypal making money as they have a revenue stream (unlike many dotcoms).

As for the money market fund, all of them say that they do not guarantee that the $1 share value will hold. As far as I know, no money market fund has ever busted the $1 (although some have had to be bailed out by their parent company).

I think the biggest threat to Paypal is the obvious moves by Ebay to discourage people from using Paypal and encourage them to use Billpoint (which Ebay just happens to own).

Michael
 
But Billpoint is far far worse than Paypal 🙁

Paypal has a buisness plan unlike those 100s of dot coms that go splat every day.
 
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