[doglar]

I have a personal account - so there are no fees whatsoever (unlike premium or business accounts where there are fees of 2.4% to 3.4% + $0.30 USD on incoming $ from parties other than yourself). This almost cancels the 3.22% interest being made on this money, unless very little of the incoming money comes from external sources. If I had $10k, the reason I would not put it in paypal 1) if I had it there to keep it liquid and maximize interest $ till the last minute a bill was due (as one might do when paying a large bill coming up say $5k), you will need to remember that 2 days are needed to send the money in 2 x 2.5k chuncks or run the risk that the payment may not be on time and get slapped with late fees, increased rate etc. 2) I could loose the 5K because there is no FDIC insurance. And since it is loosing the billpay option, my reasons for using paypal get smaller....the boring choice is to keep the $5k in a checking at zero interest and let bill pay do its majic. Another option usefull with paypal, is if you pay persons large sums (alimony) and have a cashback credit card, you can get perhaps 1% back of the money going out via paypal on the card. The better option is to find something like possibly may exist in Bank of Internet.... free bill pay option, 3% interest, FDIC and hopefully no limits no movement (e.g. 2.5k limit per day) as a checking usually does not have such limits...the only limitation would be to ensure the $1000 min avg balance remains to avoid a $4 monthly fee.