Paypal Investing
 

I have thinking about putting some money in a paypal account for a while now and I am wondering if anyone else has done this and what their experiences are.

The reasons i'm thinking about doing this is the money is easily liquidatable. I can transfer it to my bank account within 3 days with no fees, spend it on ebay, or use their debit card. The debit card is nice because it has 1% cash back. In addition money sitting in your account is placed into their money market account which is currently getting around 4.75%. As far as I can tell there is no minimum balance and there is no fee's whatsoever.

Has anyone else looked into this?

I'd be wary, simply because they can freeze your account at will, with little justification, and just as little in way of customer support.

Check out http://paypalsucks.com/

I've kept some money in my PayPal account for 3 years, and I haven't run into any problems at all. The rate on their money market fund has been consistently high throughout the entire time, and there's no minimum balance or fees. I also have the debit card which is nice because you get the 1% back right away.

Have you looked at emigrantdirect? Savings account with a 4.25% return. Might not be quite as high as paypal and you can't use it on eBay, but probably a little more secure.

http://www.emigrantdirect.com