PayPal money market fund??
 

I just recently signed up for a PayPal account, and I see that they offer a money market fund for your balance. The thing is, unless I am missing something, it's currently a sure way to throw your money away. The current yield is 1.45%, yet the current fund fees are 1.50%.
So let me get this straight, I can sign up for their money market fund, and intentionally lose .05% annually?
Yeah right, sign me up. Looks like a fund for people who don't read the fine print.

PayPal Money Market Prospectus

The current yield is what you're getting after expenses are already taken out. Fees and expenses are subtracted from the fund's assets without you ever directly seeing it, so the 1.5% is already taken out, leaving you your 1.45% yield.

Ah, I see.
Now I know why I'm not a financial planner.

I use the Paypal card (Mastercard) that pays back 1.5% when you charge against your Paypal balance. If you go the money-market route, that interest is taxable income reported to the IRS.

I'm only 17 but I heard the money market fund isn't a garaunteed return and most likely won't get you anything back in return.

Money market funds are never guaranteed since they are not FDIC insured, but they are considered extremely safe. They have the potential to pay decently when the economy isn't in the toilet.

Just a quick point...you could open an ING Direct account and get a 2.30% return that is FDIC insurred.. :up: