PayPal Prepaid Card Savings account review
Earns a 5% APY — but it’s only for PayPal Prepaid Mastercard customers.
The PayPal Prepaid Card Savings account is an optional account available to current PayPal Prepaid Mastercard customers. It earns a whopping 5% APY, but interest drops to 0.5% on balances over $1,000.
Up to 5.00%
Minimum deposit to open
Cassidy Horton is a writer for Finder, specializing in banking and investments. She has a Bachelor of Science in Public Relations and a Master of Business Administration from Georgia Southern University. Cassidy enjoys educating people about financial services, exploring the Pacific Northwest and watching endless reruns of The Office.
The PayPal Prepaid Card Savings account is a great option if you’re looking for a prepaid card and savings account rolled into one. It offers a 5% APY and no minimum balance requirements.
But if you plan to keep more than $1,000 in the account, you’ll only earn 0.5% APY. There are also limited ways to access your money and the prepaid card’s $4.95 monthly fee eats into the interest earned on your savings account.
How do I open a PayPal Prepaid Card Savings account?
Once you activate your PayPal Prepaid Mastercard, follow these steps to open your savings account:
- Go to the provider’s site and follow the steps to apply.
- From Paypal’s website, log in to your prepaid card account and click to open the optional savings account.
- Consent to receiving electronic communications from PayPal.
- Verify your identity and fund your account.
You’re eligible for a PayPal Prepaid Card Savings account if you meet these requirements:
- At least 18 years old
- US citizen or permanent resident
- Valid Social Security number
- Valid government-issued ID
- Active PayPal account
- Active PayPal Prepaid Mastercard
- Consent to receiving PayPal electronic communications
Have the following information ready when you open your savings account:
- Social Security number
- Government-issued ID number
- US residential address
- PayPal username and password
- PayPal Prepaid Mastercard card number
What are the benefits of a savings account with PayPal?
The PayPal Prepaid Card Savings account is offered through the Bancorp Bank, insures deposits up to $250,000 and comes with attractive perks like:
- High APY. Earn 5% APY — which is higher than the national average for savings accounts.
- Quick access to funds. Withdraw money from your savings account at any time by transferring money to your PayPal Prepaid Mastercard.
- No minimum balance. You’re not required to keep a certain amount of money in your PayPal Prepaid Card Savings account.
- Early direct deposits. Receive direct deposits up to two days faster than you would with a traditional savings account.
What should I look out for?
The PayPal Prepaid Card Savings account has a few drawbacks you should watch out for:
- Monthly fee. While the savings account is technically free, the prepaid card has a $4.95 monthly fee that can’t be waived.
- Cap on APY. You earn 5% APY on the first $1,000 in your account and 0.5% on all balances after that.
- Must have the prepaid card. Only current PayPal Prepaid Mastercard customers can open this savings account.
- Interest paid quarterly. Unlike most savings accounts that pay monthly interest, this account pays interest once every three months.
Compare with other savings accounts
How do I deposit or withdraw my money?
The PayPal Prepaid Card Savings account is used in conjunction with the prepaid card that comes with it, so there are limited ways to deposit and withdraw funds:
- Transfer from your PayPal account
- Transfer from your PayPal Prepaid Mastercard
- Transfer to your PayPal account
- Transfer to your PayPal Prepaid Mastercard