Frequently Asked Questions about Saving with PayPal
What is PayPal Savings?PayPal Savings offers the opportunity to open a deposit account and witness the growth of your funds while earning interest. Say goodbye to the hurdles of maintaining a minimum balance or worrying about monthly fees. Easily manage your PayPal Savings through the user-friendly PayPal website or the convenience of the PayPal app, accessible 24/7. With a simple click, you can seamlessly add funds to your PayPal Savings from your existing PayPal balance, a linked Visa or Mastercard debit card, or a verified bank account through your PayPal balance. It is important to note that PayPal is not a traditional bank but rather a financial technology company. However, the savings aspect of PayPal is provided by Synchrony Bank, which is a proud member of the FDIC. Rest assured that your savings are securely held by Synchrony Bank. At present, PayPal Savings is exclusively available for personal accounts, and to utilize this service, a PayPal Balance account is mandatory.
How can I initiate my journey with PayPal Savings?
Begin your PayPal Savings experience by registering on the paypal.com website or through the PayPal app. Navigate to the Finances tab, where you will find the entrance to the PayPal Savings page conveniently located under the Savings tab.
What are the features of Goals within PayPal Savings?Within PayPal Savings, you have the remarkable ability to devise customized goals tailored to your specific needs and desires, facilitating a more focused approach to saving. These goals act as constant motivators, driving you towards your aspirations, while also fostering organization and a keen eye on the ultimate prize.
To create goals within your PayPal Savings:
Once successfully completed, you can effortlessly manage and observe the progress of your newly established goal directly on the PayPal Savings page.
How can I contribute funds to PayPal Savings?Adding funds to your PayPal Savings fund is a hassle-free process, allowing you to choose from various sources:
- A linked Visa or Mastercard debit card
- Your existing PayPal balance
- A verified linked bank account
To add funds to your PayPal Savings, proceed to the PayPal Savings page and click on Add Money. Choose the desired option from the available alternatives:
Certain limitations may apply to the amount you can add to your PayPal Savings.
To discontinue automatic transfers to your PayPal Savings, simply access the PayPal Savings page and select the Auto-save option. The following alternatives are presented:
To cancel automatic transfers within your PayPal Savings on the app:
How can I transfer funds from my PayPal Savings to my PayPal balance
account?Please keep in mind that withdrawals from your PayPal Savings can only be accomplished by transferring funds to your PayPal Balance account.
- To initiate a transfer, decide whether you want to move funds from your General Savings or an existing goal. You can make this selection by clicking on "General Savings" or the name of the goal.
- Click on "Transfer."
- Enter the amount you wish to transfer and click on "Review."
- Choose between your PayPal balance or an existing goal.
- Click on "Transfer."
What does APY mean and how does it relate to APR?
The Annual Percentage Yield (APY) indicates the return you will receive on a deposit within a one-year period, taking into account the interest rate and compounding frequency. On the other hand, the Annual Percentage Rate (APR) represents the effective rate you will pay a lender on a loan over a one-year period.
It is important to note that PayPal Savings rates are subject to change even after the account is opened. Once you open your PayPal Savings, you will be provided with the current APY and interest rate. The PayPal Savings page will be updated accordingly if any changes occur.
Is PayPal Savings insured by the FDIC?
Rest assured that your money in PayPal Savings is deposited at Synchrony Bank, an institution that is a member of the Federal Deposit Insurance Corporation (FDIC). This means that your deposits are eligible for FDIC insurance coverage up to $250,000.00 USD, including all funds held at Synchrony Bank, including PayPal Savings. The coverage limit is determined based on different ownership categories.
How can I access my monthly PayPal Savings Statements?
You can find your periodic statements on the PayPal website, which are shared over the course of a calendar month. To locate your statement, simply log into your account on paypal.com and click on "View Statements" in the Savings tab. It is important to note that statements cannot currently be viewed on the PayPal app.
How can I find my IRS Form 1099-INT (Annual Statement of PayPal Savings Interest Earned for Tax Purposes)?
To locate your annual statement, you must log into your account on paypal.com. Unfortunately, statements cannot be viewed on the PayPal app. Here are the steps to follow:
Please note that not all PayPal Savings customers will receive an IRS Form 1099-INT. This form is only issued to customers who have earned at least $10.00 USD in interest throughout the calendar year. The reporting threshold of $10.00 USD is based on the total interest earned across all Synchrony deposit accounts.
Why might I not be eligible for PayPal Savings?
There are several reasons why you may be ineligible for PayPal Savings:
- If you have a business account or a non-US PayPal account. Currently, PayPal Savings is only available for personal accounts within the US.
- If we are unable to verify your personal information, your application may be denied.
How can I close my PayPal Savings account?
If you wish to close your PayPal Savings account, please reach out to customer service. It is important to ensure that your PayPal Savings balance is zero before requesting account closure. Please note that the account may take up to 3 days to be closed.
In the event that you move outside of the US, please contact customer service to close your PayPal Savings account.
Once you have successfully concluded the process of shutting down your PayPal Savings account, you will be given the opportunity to access and peruse your monthly statements. This can be achieved by clicking on the "View Statements" option, conveniently located under the Savings tab, after logging into your personal account on the official PayPal website. Regrettably, statement viewing is not available through the PayPal mobile application at this time.
Setting Up Your PayPal AccountIf you already possess a PayPal account, you may bypass the following instructions.Step 1. Start by navigating to the paypal.com website. Alternatively, you can create an account using the app available for download from your App Store.Step 2. Once you arrive at the PayPal
In order to establish automatic payments, it is necessary for you to be enrolled in eBills, which serve as digital versions of your credit card statement. To confirm this, please check if eBills is activated in the Bill Pay section. If it is not, kindly select the option to Request eBills and follow the
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