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

If you enjoyed this post, make sure you subscribe to my RSS feed!