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PayPal Prepaid Card Savings account review

Cassidy Horton
Cassidy Horton
Last updated:  

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%

APY

$4.95

Fee

$0

Minimum deposit to open

Details

APY5.00% on balances of to $1,000
0.50% on balances of $1,000+
Fee$4.95
Minimum deposit to open$0
Minimum balance to earn interest$0.01
Interest compoundingQuarterly
More Info

Expert review

Cassidy Horton

Review by

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.

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

$
$
months
Name Product Interest rates (APY) Fee Minimum deposit to open Interest earned
American Express® High Yield Savings
Finder Rating: 4.6 / 5: ★★★★★
American Express® High Yield Savings
0.50%
$0
$0
Enjoy no monthly fees and a competitive APY with this online-only savings account. Accounts offered by American Express National Bank, Member FDIC.
Go to site
More Info
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.
Go to site
More Info
Axos Bank High Yield Savings
Finder Rating: 4 / 5: ★★★★★
Axos Bank High Yield Savings
0.61%
$0
$250
No monthly maintenance fees. No minimum balance requirements. Interest compounded daily.
Go to site
More Info
CIT Bank Money Market
Finder Rating: 3.9 / 5: ★★★★★
CIT Bank Money Market
0.45%
$0
$100
A savings account with a higher-than-average rate and minimal fees.
Go to site
More Info
CIT Savings Connect
Finder Rating: 4 / 5: ★★★★★
CIT Savings Connect

0.50% on + If you deposit $200+ monthly into your eChecking account, otherwise 0.42%
$0
$100
CIT Savings Connect combines aspects of a checking and savings account in one product.
Go to site
More Info
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.
Go to site
More Info
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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

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