Earn a return on your paypal balance?

[quote67228fc63e="paypal"]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 2.90%li Learn more.[/quote67228fc63e]

Does anyone understand this? I don't quite get it. In a nutshell how do you earn a return on your paypal balance by doing this?

https//www.paypal.com/us/cgi-bin/webscr?cmd=_upgrade-interest

Money sitting in your account is invested into a giant (multi-billion dollar) mutual fund portfolio, at which point the money gains interest.

I don't use this for two reasons
1) I don't keep enough money in the account for it to be anything more than a few cents a month
2) Their TOS for the Money Market fund basically says that they can take all of your money and there's nothing you can do about it. I admit it's unlikely to ever happen, but why give PayPal limoreli ways to fuck you?

[quotea87fbdb470="Admin"]
2) Their TOS for the Money Market fund basically says that they can take all of your money and there's nothing you can do about it. I admit it's unlikely to ever happen, but why give PayPal limoreli ways to fuck you?[/quotea87fbdb470]
lol. I thought Paypal could that already?

So if I can get $1k in my account, I would get 2.90% (the current yield) a month?

That's what i'm not getting

I think they do the average balance you had over the past 30 days when calculating that.

I have about $4000 in a paypal money market.
Once a month I get a return of $50 or so.

It really is one of the highest yeilding money markets in the world.

Actually, Ingdirect, Virtualbank and Emigrantdirect offer higher-yielding money market interest rates (3%, 3.05% and 3.25%, respectively).

That said, I use Paypal's money market fund in addition to my other accounts (might as well have the money working for me while it's sitting there). The way it works is as follows if you have $1000 invested, they will give you an annual return of 2.9%, which is $29. This annual yield is divided into 12 (for each month of the year) and that amount is how much they pay out to you on the first of every month.

If wood had $4000 in his account, he should be expecting a payout of about $10 a month. However, the amount of money in the account is constantly fluctuating, and this affects the calculations they make for how much to pay you each month.

The way I see, as long as you're not involved with anything shady, it's likely that Paypal will not freeze your account. However, if you want your invested money to be insured (by the US Government), you should definitely go for one of the three online banks I mentioned above.