Sunday, August 13, 2006

Parking more cash in PayPal money market account

After reviewing my budget for August, I realized that I had a little extra cash which I won't need until the Fall sometime. I contemplated where to park this cash and settled on using my PayPal account which currently has a 5.01% 7-day yield.

I still haven't decided how to budget a trip to Washington, D.C. in the Fall. I may simply put it on my credit card to help build up a credit payment history, or I may accumulate the cash in an account such as my PayPal account and then transfer it back to my bank checking account to actually pay expenses as they are incurred. Another scenario is to park the cash in my taxable Siebert account since I have a debit card that can be used to charge actual expenses while I earn a semi-decent interest rate in the interim. I may also simply put all the charges on my credit card and then pay them at the end of the float period. In fact, I might simply put the cash into another 28-day T-bill that matures shortly before my credit card balance is due. The latter would probably give me the best rate of return. In the end, I may simply go with whichever method is both easiest and still pays a semi-decent rate of interest. The downside of my Siebert account is that it presently has n method for easily electronically transferring between my bank checking account.

Incidentally, this transfer to my PayPal account is for the maximum amount that PayPal will allow me to transfer in a single month unless I wanted to establish a non-basic account. Still, this works out nicely as a convenient place to park small amounts of cash.

-- Jack Krupansky

2 Comments:

At 2:15 PM EDT , Anonymous Anonymous said...

You should double check that the receiving limit applies. I have a personal account and have made fairly large bank transfers into it.

My understanding is that the receiving limit covers how much money you can receive each month from third parties, not that it limits how much you can transfer from your linked bank account.

 
At 11:55 PM EDT , Anonymous Jack Krupansky said...

I'll defiinitely try to sort this out. As I may have mentioned in a later post, my second deposit didn't seem to affect my limit.

Thanks for pointing this out.

-- Jack Krupansky

 

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