Can you use Paypal like a savings account?

Question

I am horrible at saving money and need to put it somewhere where I don't have easy daily access to it. Is this a stupid idea?

Please refrain from rude and useless comments...

Additional Details

I rarely go on eBay or any other site that I could use Paypal on, so I figured that was in my favor. And the last thing I want right now is a loan, so thanks anyway. lol What it boils down to is that I'm tired of living off my Overdraft and want to put a small amount aside each month so I can eventually get ahead.

Answer 1

Best Answer - Chosen by Voters

No, it's not a stupid idea. Go to www.paypal.com and apply for a PayPal money market savings account to start saving money.

Actually, I recommend EmigrantDirect as the BEST way to put the cash where you connot easily access it. Or better yet a certificate of deposit.

Answer 2

You can use it as a saving account, but first you have to activate the money market fund if you want to earn interest on the money you keep in paypal. I keep money in there too because I get 5.06% right now in their money market fund which is better than many other savings accounts on the market. Make sure you don't buy things with paypal if you want to save your money and earn a good interest.

Answer 3

Yes, you can use PayPal as a savings account but I would not suggest it to you specifically if you actually use sites that feed from PayPal (e.g. eBay, Half.com, etc.). The reason PayPal pays great interest is that the average customer has little to none existent discipline with money, you are likely to spend it more freely on bids at eBay or at other websites. If you do not use these websites that PayPal feeds, it is a great place to store cash that takes several days to make liquid, which can hamper your desire to spend. Some other places you can try are ingdirect.com and emigrantdirect.com; they offer competitive rates while being inaccessible by debit/ATM card or merchant website.