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PayPal money market fund??

Old 03-01-03, 03:57 PM
  #1  
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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
Movie_Man is offline  
Old 03-02-03, 07:05 PM
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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.
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Old 03-03-03, 10:27 AM
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Ah, I see.
Now I know why I'm not a financial planner.
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Old 03-07-03, 05:56 PM
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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.
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Old 03-08-03, 11:53 AM
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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.
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Old 03-09-03, 05:04 PM
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Originally posted by MrSneis
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.
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Old 03-09-03, 06:27 PM
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Just a quick point...you could open an ING Direct account and get a 2.30% return that is FDIC insurred..
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