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Originally Posted by jmjj215
I just noticed the 4.19 today, though looks like a prev. poster beat me to it. There are plenty of MM accounts that people feel totally comfortable with - none of them FDIC insured. I feel comfortable leaving money in my paypal account - haven't had a problem yet.
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I have had a problem - someone stole $1000 out of my bank account using Paypal, as I posted earlier. but I'm comfortable enough to use them. their security has gotten better. also, you should keep your password hard to guess - use numbers and special characters. change it every so often - this is probably what got me the last time. don't respond to phishing emails.
as to money market accounts, they have just about never "broken the buck" - ie, dropped in value. as to what Paypal is doing, they had a fee waiver in place while interest rates were low. I believe it was stated in their prospectus, which everyone should read. I'm not exactly overjoyed, but it's a common practice - else there would be no reason to invest in MM funds when interest rates were low. this is the removal of a fee waiver, not a fee hike. money managers do generally get compensated for their services, after all.
now, TIAA-CREF, which claims it accidentally low-balled shareholders on fees, and then threatens to either hike fees or create higher-fee funds and then merge the old funds into those, absolutely deserves everyone's ridicule.