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PayPal Prepaid Card Savings account review

Earns a 5% APY — but it’s only for PayPal Prepaid Mastercard customers.

finder.com’s rating: 4.6 / 5.0

★★★★★

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%

APY

$4.95 per month

Fee

$0

Minimum deposit to open

Details

Annual percentage yield (APY)5.00% on balances of to $1,000
0.50% on balances of $1,000+
Fee$4.95 per month
Minimum deposit to open$0
Minimum balance to earn interest$0.01
Interest compoundingQuarterly
More info

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Review by


Cassidy Horton is a writer for Finder, specializing in banking and kids’ debit cards. She’s been featured on Legal Zoom, MSN, and Consolidated Credit and has a Bachelor of Science in Public Relations and a Master of Business Administration from Georgia Southern University. When not writing, you can find her exploring the Pacific Northwest and watching endless reruns of The Office.

Expert review

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:

  1. Go to the provider’s site and follow the steps to apply.
  2. From Paypal’s website, log in to your prepaid card account and click to open the optional savings account.
  3. Consent to receiving electronic communications from PayPal.
  4. Verify your identity and fund your account.

Eligibility

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

Required information

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

Name Product Annual percentage yield (APY) Fee Minimum deposit to open
Aspiration Spend & Save Account
Finder Rating: 3.8 / 5: ★★★★★
Aspiration Spend & Save Account

1.00% on $0 to $10,000 but you’ll need to be enrolled in Aspiration Plus and make at least $1,000 in debit card purchases a month
$0 per month or $15 per month for Aspiration Plus ($12.50 per month if you pay annually)
$10
Deposits are fossil fuel-free and insured by the FDIC. Enjoy a spend and save combo account with unlimited cash back rewards and a $100 bonus when you spend $1,000 in your first 60 days.
Axos Bank High Yield Savings
Finder Rating: 4 / 5: ★★★★★
Axos Bank High Yield Savings

0.61% on $0 to $24,999
0.25% on $25,000 to $99,999
0.15% on $100,000+
$0
$250
No monthly maintenance fees. No minimum balance requirements. Interest compounded daily.
Chime Savings
Finder Rating: 4.6 / 5: ★★★★★
Chime Savings
0.50%
$0
$0
Grow your savings automatically with recurring transfers, round-ups on debit card purchases and 0.5% APY.
Discover Online Savings Account
Finder Rating: 4.6 / 5: ★★★★★
Discover Online Savings Account
0.40%
$0
$0
Take advantage of a high-interest online savings account with no fees, no minimums and more.
UFB Direct High Yield Savings
Finder Rating: 3.6 / 5: ★★★★★
UFB Direct High Yield Savings
0.20%
$0
$100
Earn an APY when your balance is higher than $10,000 with this no-monthly-fee savings account.
SoFi Money
Finder Rating: 4.3 / 5: ★★★★★
SoFi Money
0.25%
$0
$0
SoFi Money® is a cash management account that charges no account fees to save, spend, and earn cash back rewards when you spend on brands you love.
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Compare up to 4 providers

If you want a high-yield savings account that pays interest on a monthly basis and doesn’t put a cap on the APY, you’ll want to keep looking. As always, compare your options when considering a savings account.

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:

Deposits

  • Transfer from your PayPal account
  • Transfer from your PayPal Prepaid Mastercard

Withdrawals

  • Transfer to your PayPal account
  • Transfer to your PayPal Prepaid Mastercard

Frequently asked questions

Savings account ratings

★★★★★ — Excellent

★★★★★ — Good

★★★★★ — Average

★★★★★ — Subpar

★★★★★ — Poor

We analyze top savings accounts and rate them one to five stars based on factors that are most important to you. These factors include: interest rates, monthly fees, minimum deposits, customer service and account features.

Read the full methodology of how we rate savings accounts.

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