Question
Has anyone done this? Comments? Problems? Love it? I realize that some folks have a visceral reaction to PayPal , so if you've done the money market thing and don't want to post about it here, I'd like to hear your comments anyway. Please post or PM me or email me! Thanks for any input!!
Answer
I tend to think it best not to keep too much $$$ in a company operating like a bank but not qualifying for FDIC or FSLIC insurance. Such was the way of "Thrifts" and "Savings and Loans" that went belly-up in the early 80s.
just my $.02 -- ymmv
-gw4m-
from Paypal's site: (highlighting mine)
FDIC Pass-Through Insurance
You do not need to keep funds with PayPal in order to use our service. If you do hold a balance, you can do so in two ways: (1) PayPal, as your agent, will place your funds in a pooled account at an unaffiliated FDIC-insured bank or savings institution, which is eligible for pass-through FDIC insurance coverage; or (2) you can elect to earn a return on your funds by enrolling to invest all funds that you receive into the PayPal Money Market Fund. The PayPal Money Market Fund is not FDIC insured, not guaranteed by any bank and may lose value. PayPal keeps a record of the amount of your balances, which you can check by logging in to your account through the PayPal Web site at any time. Balances held in currencies other than U.S. Dollars are not FDIC-insured.
If you do not enroll in the Money Market Fund, then in the unlikely event that an FDIC-insured bank in which we place your money fails, your balance placed at the bank would be subject to FDIC pass-through deposit insurance coverage, along with any other deposits you hold at that bank, up to a total of $100,000.00 USD. Pass-through deposit coverage is contingent upon PayPal maintaining accurate records and on determinations of the FDIC as receiver at the time of a future receivership of any bank at which we place your funds. FDIC pass-through deposit insurance protects you only against the failure of the bank at which PayPal places your funds, and does NOT protect you against PayPal's insolvency. Through the terms of our User Agreement, we believe that your funds will also be protected from any claims of PayPal's creditors and will be returned to you even in the unlikely event of a PayPal insolvency.
You can access a list of the banks where we place your money here.
Please see the User Agreement for more details on how we handle your money.
http://www.paypal.com/cgi-bin/webscr...n/fdic-outside
Answer
I don't/won't use the money market because I don't trust paypal any further than I can throw them. I accept pp but I have the auto sweep turned on and every night my money is taken from pp and put into my bank account.
I also don't have a pp debit card and won't. Read way too many times about cards being denied when the money was in there.
Too many other things in the world to annoy me. Why set myself up for more?
Just my .02
Jo
Answer
PayPal hasn't given me any reasons TO consider putting money in their so-called Money Market account but it sure has given me plenty of reasons NOT TO.
Why?
I have the PayPal debit card. My modus operandi has been to withdraw the maximum in cash every day, because I like having a chunk of cash to operate with. Weeelllll, it seems that MasterCard doesn't like that too much. Every few weeks my account is "flagged due to suspicious activity" even when there is ample cash in there. I have to call PayPal to restore my access to my own money.
PP blames MasterCard and MasterCard blames PP. Typical run-around. PayPal doesn't even apologize!
So, I'm going to *invest* my money with PayPal? Hollow laugh! How do I know they'll let me have it when I want it?
Look, PayPal wants us sellers to let them handle all our transactions. I *was* using my debit card to buy stamps, mailers and what-all, but no more. I can get a money market account anywhere. No one needs PayPal for that.
fLufF
--
P.S. I'm also down on debit/credit cards in general. I'm just FED UP with this account-flagging crap. A few years ago my MasterCard was denied for a routine transaction. When I called MC, they said my account was under review because they saw charges for an Amtrak ticket, a diamond necklace and a transatlantic crossing. I said, "Yeah, moron. I'm going to England for a month. Got a problem with that?" You know they're not doing it to protect me; they're just covering their own rears.
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They are currently paying 4.72% They paid $2.50 in interest this month on my meager balance. That and a nice chuck of cashback for using my Paypal card to get the money out. I'm not hating them. Instead of withdrawing money from my Paypal account, I transfer money IN. Then I use the debit card. My cashback is more than my eBay, Paypal, and Andale fees.
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Thanks everyone!!
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I would do some research in the financial community. a few years ago, the old wallstreet week show on pbs reported that the paypal money market fund was the top returning fund for that year and they highly recommended it. have no idea how they are doing compared to other funds now.
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I remember reports saying that Paypal MM was a good investment as MMs go. Higher rates of return usually mean higher risk. All investment firms and banks have MM accounts. eBay isn't an investment firm or bank.
That said, I wouldn't want my investment firm to lock down all access to the account where I want my customers to pay for their auctions. Especially if I had large sums of money invested and needed to pay my bills from there, too. There are reasons to keep your investments separate from your day-to-day business $$$.
Answer
Originally Posted by goodworks4music
I tend to think it best not to keep too much $$$ in a company operating like a bank but not qualifying for FDIC or FSLIC insurance. Such was the way of "Thrifts" and "Savings and Loans" that went belly-up in the early 80s.
just my $.02 -- ymmv
-gw4m-
Not to mention that PayPal announced a few months back that they were investing all of our money anywhere they wanted, and not just in FDIC insured banks any more.
Just a disaster waiting to happen, and then they'll be a ton of ignorant people cryng that the government should have not let it happen.
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I have been tempted several times, but as others have said, it seems like an accident waiting to happen. It's just teetering on the edge of ruin. I don't like sticking my money where it's not safe, be it in a piggy bank on Hollywood Boulevard, or in a PayPal MM account.