Make Easy Money With PayPal’s Money Market Fund
Posted on April 25th, 2008 by Jim under Make Money Online
Making money online can be as simple as getting a competitive return on your investment, instead of just leaving it in a safe letting it decrease in value over time as inflation kicks in. While the current rate of inflation around 4% won’t be completely overridden by PayPal’s new Money Market Fund, the number of people NOT taking advantage of the clear-cut 2.5%-3.0% return amazes me. Get in on this one today!
I came across this feature of PayPal a month or two ago, and I am very happy with the results. Essentially, PayPal has set up their own Mutual Fund that promises a safe, but competitive, return on the money that would ordinarily be sitting around in your account. I have a few hundred dollars in my account, so it is a huge advantage to subscribe to this service,as they are currently projecting a 2.64% yield.
I know, I know, its scary to give PayPal control of your money. They do say outright that you could lose money on the deal, but this is mostly a disclaimer than anything else. I would go ahead and say put all of your PayPal account money into the new “Money Market Fund,” as you will get better returns and you are safe. This isn’t your typical mutual fund, and I suspect they are investing in the
safest things around (things like U.S. treasury bonds) that promise good returns regardless of economic headwinds.
Truth be told, the current yield at juts 2.64% is on the lower end of what they have done historically. Heck, they’ve even hit over 5.56% returns just a few years ago. Have they EVER lost money? No. Will they lose you money? Probably not. I give them the green light on getting you a positive return on money that would ordinarily do nothing in your PayPal account.
This sounds too good to be true right? Well, it really is this easy and good. There are no fees or anything to invest, and you can even put as little as one dollar into the fund… though that would be a bit pointless wouldn’t it? They’ve drawn out a particular scenario where you invest $10,000 in the fund, which achieves 5% returns a year for ten years going. You would gain $1,349 on your investment! Sure, this is a hypothetical, but it is a great example of how having your money in the program can benefit you.

What about taking money out? PayPal makes this really easy, as you can literally take money out or put more in at any time. They kick back a dividend to your account every quarter, so you will see your investment start to come back in pieces. I love seeing my money actually doing something. Because they don’t tax your account money at all in the first place, you are making money with ease!
Bottom Line: PayPal’s Money Market Fund is a cool new way to get a return on the money ordinarily just sitting around in your PayPal account. Don’t be hesitant to join, its so easy and it is almost risk free. Don’t be too concerned with the disclaimers saying you could lose money, it’s not going to happen… it’s just required by law. I’m not sure if this is available overseas or not, so if you can’t access the feature… you are probably out of luck. Check out their prospectus for more details, but otherwise trust me and enroll today to start making money online in a whole new way… no business scheming necessary, start earning a competitive return today!
-The Net Fool
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Just a note to you readers: this post isn’t sponsored by PayPal or anything. It’s just such an easy way to get a return that it would be downright foolish not to join if they give you the opportunity
I guess it’s worth a try. Especially since the dollar is losing so much value. Might as well try to hedge against he loss in value of your money rather than let it sit there in your Paypal account and lose purchasing power.
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I hadn’t really thought about this before – I’ve always ignored that as being a fringe service of paypal. Now, I’m really interested in giving that a look.
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man, that’s totally a good idea.. I’m gonna try that too.
I think that the amount of people that overlook this is amazing. You’d be surprised at what a simple 3% return can do to your money just sitting there otherwise
To make money online is a large percentage of today’s population goal in the recession that is upon us. Small business owners and most major companies are looking to make money online too. With webhosting ranging from 6.95 to 20 dollars per month start up cost and monthly fees are far less than running a brick and mortar business.
Hrm, ya, I’m not big on this stuff, so I’m going to stay away from this one.
Anyways, you should make a post about Blogupp one day. I’m testing it out on my blog right now…check out http://www.blogupp.com it’s kinda like Entrecard, but there is no need for registration.
Oh and I posted a new article on my blog, drop me a comment sometime
Never knew about it.
Why paypal never marketed this stuff ?
let me see
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Can I join this service in China?
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Sometimes people just don’t understand compound interest and how it works. At 3%, your money will grow exponentially over a long period of time as opposed to just sitting there collecting dust.
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Wow.. it is a nice idea to make money online without losing few pennies due to inflation. I think it is worth to make a try. I am going to try this…
I would be on this if I was >18
I only have $9.00 in my paypal account
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I’d rather stay with an FDIC insured company like ingdirect.com, or hsbcdirect.com. Often they have a higher rate as well.
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Yes I think it is a good idea…. I got some idle money in my paypal account. Why not use it… its growing any way right ?
I trust Paypal…
as of now, paypal money market is at 2.3% (or very close). if you have plenty of extra money in paypal, I would throw it in a free wamu.com savings account where it is FDIC insured and currently at 3.75%.
but yeah, 2.3% is better than nothing if your money is just sitting there.
Hello. I am interested in Money Market Fund. Is it okay for personal account to enroll too since I couldn’t find money market link in my account.
“lawsuits”
And of course, now PayPal’s money market fund is down to 0.19% (or less than 1/5th of 1%…) Still, my merchant fees are through the roof. Add this to the inherent lack of safety in PayPal and I can tell you this, I’m yanking my money out today.
now down to .14%; why would any sane person bother, given that money market funds *HAVE* lost money (for example, Ameriprise).
Who cares, 0.14% is better than 0… you’d still be a “fool” not to have your money in the PayPal Money Market Fund! Money market funds don’t lose money, and now that the global economy is strengthening that rate will soon be rising as investments begin to play out.
“Money market funds don’t lose money”
Um, money market funds are not supposed to lose money, but if you read the prospectus and the warnings on the PayPal site they clearly state that you could lose your investment.
Search PAPXX which is the symbol for the PayPal Money Market Fund. It has a 96% sell rating as of yesterday.
Considering that the upside is only 0.14% and the downside is unknown, I would not recommend this as an investment, and I have opted out of the money market for my PayPal balance.
At the time this post was written this was a good investment, but currently the risks outweigh the benefits.
eb
With all due respect, PAPXX has no analyst coverage… and claiming they are a sell rating is just incorrect. You won’t be losing money with this one. When you understand how investments like these work, they only load up on ultra-safe securities like U.S. Treasuries. I have only read of one Money Market fund ever losing money, and that we only a percent or two in one quarter… I highly advise all of you to take your chances
I didn’t read all the comments, so this may already have been mentioned, but the fund is not a money market based fund created by Paypal.
It’s simply a feeder to Barclays Global Investors fund.
They’re simply passing cash on hand over to Barclays, and then redistributing the gains they obtain.
I decided to stick with Fidelity. Rates are comparable after you factor in the high cost of doing business with Paypal, and you’re much safer.
i have nnot did any thing like this in my life. but iam now, frist time a working man can make a buck