(no subject)

[sprinklethief]

okay, i'm a math/finance retard so i need some help here.

my savings has an interest rate of 0.10% and is FDIC insured. it's technically a money market account.

my paypal account has an interest rate of 5.05% but is NOT FDIC insured. the rate can fluctuate as well though historically it has increased since 2001. it is also a money market account i believe.

would it be worth my while to transfer my savings into my paypal account? lets say my savings is $2000 for all intents and purposes. opinions? i'd just be afraid to have a loss, and with my luck that's bound to happen...

Comments

[ciani.livejournal.com]

get an account with ingdirect.com which IS FDIC insured and has an interest rate on a regular checking of like 4.25% and an interest bearing savings of slightly more.

[ciani.livejournal.com]

oops sorry! 3.5% on checking and 4.3% on savings

[greyyguy.livejournal.com]

PayPal is not a bank, not insured, and not held to the same legal standards as a bank. I would recommend against it. I've heard too many horror stories around Paypal to be comfortable in that.

ING is a much better suggestion. It is a real bank, insured, and with a set interest rate. Plus you get a $25 bonus for opening an account with $250 or more. If you use a referral from someone they get $10 for it. The only drawback is that transfers from it can take a few days.

You might be able to talk to your bank about a different type of account and see if they have a better interest rate.

[dreadful-birds.livejournal.com]

They probably invest it in the stock market, and if it's not insured then it's GAMBLING, regardless of what anyone says. I wouldn't do it.

[paroxysm-cycle.livejournal.com]

3.5 is still better than .10, especially insured.

[paroxysm-cycle.livejournal.com]

if i want a "competitive" interest rate on my savings i have to drop a chunk of change into it that i just don't have right now. the closest thing remotely in my range is a CD that has a term of 6 months to 10 years with a fixed rate of 4.2 for the minimum deposit of $2500, which i just don't have either.

[paroxysm-cycle.livejournal.com]

yeah, the more i read the more i realized that's just a bad idea all around. i'm thinking about hooking myself up with a savings from ingdirect.com due to a similar interest rate and the whole being insured thing.

[dreadful-birds.livejournal.com]

Sounds good. I didn't know about ING either, we've been looking for some way to save up money and that sounds pretty good.