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The PayPal Debit Card 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.
Earn a 5% APY on the first $1K in your account — if you're a PayPal Prepaid Mastercard customer.
The PayPal Debit Card account is a great option if you want to make PayPal your one stop for shopping, saving and sending money to friends and family. It works best if you already use the Prepaid Mastercard or if you regularly send money to friends and family within the US.
PayPal charges fees for sending money to friends and family, unless you use your PayPal account balance or bank. To avoid transaction fees or delayed payments, use the savings account to keep your PayPal balance topped up and earn a steep 5% APY on the first $1,000 stashed in the account. Simply transfer money from your savings to your Prepaid Mastercard account when you need the funds.
However, if you’re not a regular PayPal user, you can find savings accounts with easier access to your money and higher rewards applied to all of your dollars. Plus, the prepaid card’s $4.95 monthly fee eats into your interest earned.
finder.com's rating: 4.6 / 5.0
★★★★★
The PayPal Debit Card 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.
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 compounding | Quarterly |
More info | Go to site |
Once you activate your PayPal Prepaid Mastercard, follow these steps to open your savings account.
You’re eligible for a PayPal Debit Card account if you meet these requirements:
Have the following information ready when you open your savings account:
The PayPal Debit Card account is offered through the Bancorp Bank, insures deposits up to $250,000 and comes with attractive perks like:
Let’s say that you keep $5,000 in your PayPal Prepaid Savings account. You’ll earn the highest rewards on the first $1,000 in the account, but the APY is still competitive for the rest of your savings. What you’ll earn:
Qualifying APY | Amount in savings | Interest earned in 12 months |
---|---|---|
5.00% on first $1K | $1,000 | $50.95 |
0.50% on amounts above $1K | $4,000 | $20.04 |
Total | $5,000 | $70.99 |
The PayPal Debit Card account has a few drawbacks you should watch out for:
Earn a similarly high APY on more of your savings by going with Aspiration, as long as you spend $1,000 monthly in debit card purchases. Or try Quontic Bank’s High Yield account to gain a competitive interest rate without committing to spending or saving a specific monthly amount.
Check the Compare box to see different savings accounts and their features side by side.
The PayPal Debit Card account is used in conjunction with the prepaid card that comes with it. Ways to fund or use the money in your account:
You need to transfer money from your bank or prepaid card account to your PayPal savings account. However, you have many ways of adding money to your Prepaid Mastercard, including direct deposits, mobile check deposits or cash reloads at a Netspend Reload location.
Again, transferring between your bank and prepaid card accounts are the main ways to use your savings.
Get in touch with PayPal‘s Prepaid Mastercard customer service team one of these three ways:
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★★★★★ — 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.
Sarah Finder
Writer
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