PayPal + Bank Accounts. Where should I keep my money?


I just have a small question about PayPal and bank accounts. I have my PayPal account linked with my bank account, but where should I keep my money? I don’t think it would hurt to leave money in either places, but this came across me while considering the fact that I am saving up for something to buy in the future.

PayPal has monthly restrictions on what you can deposit / withdraw (if you have a free account), and the amount I plan on dealing with is far over the limits, so I’m a bit confuzzled.

I appreciate all help. :slight_smile:

I tend to leave all my money from my full time job in my bank, and all money made on-line in paypal, to be spent on-line (for PC components, game subscriptions, ebay etc.) however its always good to have the paypal money as a safety net should I ever be in dire need of money but then I have a merchant account from when I used to sell alot of items on eBay so I can easily deposit a large sum into my bank from paypal

[FONT=“Georgia”]The f*ckin’ bank !! Are you kidding !?!

I do not trust Paypal. Not at all.


Absolutely don’t leave money in Paypay ever. I go out of my way to transfer money out at least twice a month. Paypal is NOT A BANK and the rules are different, so why fool around with them?

Alrighty, I’ll keep my money in my bank account.

Thanks for the advice.

I withdraw $1500 whenever my balance in PayPal hits $2000. I pay one of my major business expenses through PayPal, while not all sales come in by PayPal, so I end up withdrawing 1-2 times a month.

There’s no super scary reason to not leave money in the account. The absolute worst case scenario would be your account being closed or frozen, which is not a normal situation. If that were to happen, your funds would be held for 6 months in order to be available for any disputes or chargebacks filed against the account, after which you can withdraw it.

Yup, definitely withdraw it to your bank account.
Paypal can terminate your account anytime and get all your savings for some reasons :stuck_out_tongue:

Depending on what type of bank account you have they may pay interest. Paypal doesn’t pay interest.

PayPal can pay interest. Enable the money market feature. They also pay 1.5% cash back on debit card purchases.

PayPal will never terminate your account and wrongfully keep the funds. Unless you got them through fraud or some other illegal means, the most they will ever do is hold them for 6 months before releasing them back to you.

The Money Market feature is an investment option where the value can go down as well as up. It isn’t interest. It also requires that you hold your account balance in US dollars. Also since I can’t find the option for it anywhere in my account, I assume that it is only actually offered in few (possibly one) country.

Certainly they don’t offer a debit card unless you reside in the US.

It’s probably a better bet for most people than what they’d be doing with their money not leaving it there. The returns on the PayPal money market fund by year:

2000: 5.56%
2001: 2.86%
2002: 1.85%
2003: 1.16%
2004: 1.37%
2005: 3.27%
2006: 4.88%

The fund has never had a negative quarter. The average annual return for 1-year and 5-year investments were both higher than US treasury bills.

Never keep more than 500 USD in your paypal account ,
paypal isn’t safe to keep money its only safe to pay somebody and get back your money , lol