The PayPal Benefit to Savings and More Interest
I have a secret. Well actually if you have read the title of this article, I had a secret.
I am making and saving a lot of money with my PayPal MasterCard, and you can do the same thing.
Who is PayPal?
PayPal is a company originally setup in 1998 to make online transactions easier. PayPal is owned these days by EBay after an acquisition in 2002.
What does PayPal do for me?
It’s really pretty simple. PayPal is like an online savings account for me.
Direct Benefits
- They currently pay me 5.15% interest on all funds in my account.
- I get 1% cash back savings on all purchase I make with my PayPal MasterCard
- I can transfer money from my primary bank account to or from my PayPal savings account with a direct deposit (ACH)transfer.
Indirect Benefits
- My PayPal MasterCard is not a credit card. It is debit card that is accepted anywhere MasterCard is accepted. This enables me to make purchase with the convenience of a mastercard without having to run the risk of making a credit card charge.
- Paying for small items with a credit card is convenient, but if you do not pay your bill in full you end up paying 5% to 10% to 20% to 25% interest on those small purchases and that interest can add up quickly.
- When I make small purchase with my PayPal card I never run the risk of getting a credit charge. The funds come straight out of my PayPal account, where they were previously earning 5.15% interest.
- I immediately get 1% cash back on the charge instantly!
- As I am charging through MasterCard and not debiting, the vendor selling the goods must pay the fee to MasterCard. This is good for me as I am not paying a debit fee myself.
- In addition to all of those great things, I use my PayPal card as a buffer against my normal bank account. I only keep enough money in my PayPal account for my monthly charges or internet purchases. So if I were to ever lose my PayPal card or become the victim of identity theft if someone hijacked my number, then only the small amount of funds in my PayPal account would be at risk.
- Plus I would get the full protection offered by MasterCard covering that small amount of risk. My primary bank account and other credit cards remain safe!
To sum it up, I get 5.15% interest, I get 1% cash back instantly, I do not pay any interest fees on purchases, I have the convenience of a MasterCard without the expense, and I have protected my identity with an added layer of protection!
