Mike 350Z

I've read all the other threads about this, but they didn't really cover my specific situation. Basically I owe my dad and sister a couple grand apiece, although neither one is rushing me at all, I was thinking of putting about $500/month in my paypal account because it's up to 3.89% now, vs. my savings account which is less than 1% I think, and paying them all off at once.

So what are the risks? I never buy/sell on ebay or use paypal for anything, so I don't have to worry about claims and disputes from ebay auctions. But other than normal fluctuations in rates (which I will be vigilant of by watching it on a daily basis) is there anything else I should be mindful of considering it's still Paypal after all?

I was thinking put one month's alottment into it just to see what happens, couldn't hurt right?

P.S. - I read the prospectus and all that crap, and I know it's not gonna make me rich, I just wanna maximize my short term returns with the least amount of risk as possible.

doopstr

Well its not FDIC insured, which means PayPal could run away with your money. But I doubt that's going to happen because they are owned by eBay.

Look into Emigrant-Direct (be sure to check my rant thread ). They are a real bank and the account is FDIC insured to 100k. They are paying 4.0% on a plan savings account. I expect that to hopefully goto 4.25% soon since the Fed just raised rates again.

If my rant thread turns you off, check out ING. Now that my Emigrant account is okay I am alright with it. They paid me interest on the last day of the month .

Mike 350Z

HAHA I read the first line and it kind of turned me off. I don't wanna waste a lot of time doing this. I might just go half-and-half, one month paypal, one month savings, etc.