Quote:
Originally Posted by krayziebone33
Poundwise,
Have you ever thought about adding Paypal to the original list. They are offering 4.61% APY (I believe) . I'm not sure about the details or whether or not they're FDIC insured, but maybe you know more.
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PayPal is not an online bank and does not offer a savings account. PayPal is an online payments facilitator with several banking features available as options, such as a cash-back debit card and a money market fund sweep. PayPal states, "The PayPal Money Market Fund is designed primarily as an automatic sweep investment for uninvested cash balances in PayPal customer accounts."
You are correct, at present the stated yield for the MMF is 4.61% APY. However, "Investments in the PayPal Money Market Fund are not insured by the FDIC. Past performance does not guarantee future results. Although the fund strives to maintain the value of your investment at $1.00 USD per share, it is possible to lose money by investing in the fund."
So, while one may wish to take advantage of PayPal and the available features, including the money market fund sweep, it does not qualify for this listing as an FDIC insured, online savings account offering.