Savers hungry for higher returns will soon have the option of putting their money into a high-yield PayPal savings account.
The company – PayPal Savings – will be part of the new PayPal app. Synchrony Bank will offer the savings account, which is expected to start with an Annual Percentage Return (APY) of 0.40%.
There will be no minimum balance or monthly fees attached to the account, PayPal says. Customers can also set up automatic transfers to their PayPal savings account for savings, and the app will feature visuals for financial goals and progress.
The PayPal app, billed as an all-in-one digital wallet, will also include several other new features, such as:
- Shopping tools to help you find exclusive offers
- A loyalty program that allows you to earn rewards redeemable for cash back rewards and PayPal purchase credits on qualifying purchases you make with PayPal
PayPal says it will begin rolling out PayPal Savings to US customers “in the next few months.” The new PayPal app is now available, although the new shopping tools and rewards are expected to roll out in the coming months.
Find the best savings account rates
While a 0.40% return is significantly higher than what many banks offer (the national average savings account rate is only 0.06%), you can do even better. In fact, it’s even possible to get more than double the rate from PayPal.
To find such opportunities, stop by the Money Talks News Solution Center and look for the best savings account rates. Right now, you will find many accounts offering rates from 0.50% to 1%.
There are also ways to increase your cash reserve that go beyond just parking money in an online savings account. Money Talks News founder Stacy Johnson discussed ways to improve returns in a recent podcast. As he says:
“Unfortunately, there is no free meal. Only a liar or a fool would try to convince you that you could earn 1000 times the interest without additional risk. But, maybe, you can earn 1000 times the interest without taking 1000 times the risk.
For more information, see “10 Ways to Earn 10% or More on Your Savings.”
Disclosure: The information you read here is always objective. However, sometimes we do receive compensation when you click on links in our stories.
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