Thursday, December 6, 2007

PayPal’s Money Market Account


I have some business transactions that are done through PayPal and most bloggers do as well. Until recently I have withdrawn my money on a monthly basis to put it my bank’s savings account. That is until I enrolled in PayPal’s money market account! The last two months PayPal has more than doubled the interest that I am getting from my bank’s savings account and my PayPal account had less money in it.

I deposit a little money from each of my paychecks into my savings account to go towards my debt retirement and had been trying to use the money in my PayPal account to establish a savings account for emergencies, vacation or to buy something for the family later on down the road. The problem had been that when that money hit my savings account it became immediately accessible for whatever I wanted. This isn’t the case with PayPal. A withdrawal takes 3-4 days so I can’t immediately spend the PayPal money.

Currently the PayPal money market account has a 4.70% yield. My goal now is to keep that account growing by not withdrawing unless absolutely necessary. I usually have between $50 and $200 a month deposited into my PayPal account so my goal is simply to see how much money I can build up in the next sixth months. I’ll decide what to do with it over the summer.

2 comments:

Wally Banners said...

excellent article on paypal i have my dough at edwards jones mm and it doesn't pay as much as paypal wow man ty.
You got my Battle of the Blogs vote :)

OverMyHead said...

Thanks Wally!