9/17/2023 0 Comments My paypal accountBut there have been plenty of unforeseen “black swan” events with large financial institutions this year. No one expects PayPal to suddenly go out of business. Is this too risky? What about FDIC insurance and PayPal?”Įarlier in the podcast, Clark warned that storing large sums of money inside your PayPal account is a bad idea. That’s what a listener asked on the June 14 podcast episode.Īsked Jeff in Alaska: “Should I transfer money out of my bank account into my PayPal account? PayPal currently offers 4.15% APY. Should I move my savings from my bank to PayPal? Should I Stash My Savings in PayPal Instead of a High-Yield Savings Account at a Bank? Should you forego banks and put your savings into, say, PayPal instead? That’s what a listener of the Clark Howard Podcast recently asked. Some even offer much higher effective FDIC limits by spreading deposits across multiple banks. But several high-profile banks failed this year, spawning a new round of fear and mistrust among consumers.Ī variety of fintech companies, including digital payment companies, investment companies and robo-advisors, are offering their own brand of interest-bearing accounts. Savvy consumers are comparison shopping their savings accounts. Meanwhile, some of the biggest banks are paying less than 0.2% APY, counting on inertia to keep customers in place. The Fed has raised interest rates at a historic pace since March 2022.Īs a result, the best high-yield savings accounts now pay more than 4% in annual interest.
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