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I've seen that on this page for quite a while but never have investigated because I'm not interested in a $4.95 a month prepaid card. Anyone have details/experience? If it's something with no strings obviously I would eat the monthly fee to get it, but I doubt it.

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Looks good! Just wondering about the direct deposit. Will ACH (like ING, Paypal ,etc) be OK?

fuchl (Feb. 14, 2012 @ 9:07p) |

Then there's various fees:

  • Monthly Fee - $5.00 (waived if you load at least $500/mo onto your MangoMoney card)
  • ATM Wit... (more)

TheDiggler (Feb. 15, 2012 @ 1:19a) |

what I do to skip the atm fee is just go to grocery stores and get Cash Back. can usually get $200 at a time at grocery ... (more)

mcbelisle (Feb. 15, 2012 @ 6:40a) |

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i wonder how long that 5% will last. Somehow I feel not very long

"The optional savings account is made available to cardholders through The Bancorp Bank, Member FDIC. TO OPEN A SAVINGS ACCOUNT, YOU MUST ESTABLISH A PAYPAL ACCOUNT, OR LINK THIS PREPAID CARD TO YOUR EXISTING ACCOUNT. ... Interest is calculated on the Average Daily Balance of the savings account and is paid quarterly.The Annual Percentage Yield is accurate as of January 1, 2012: this is a promotional rate and may change without notice pursuant to applicable law. No minimum balance necessary to open the account or obtain the yield."

Obviously promotional rate, but about how long have you been seeing them advertise the 5%?

It sounds like they charge you for spending the money in addition to the monthly fee. Also, any amount of money for which earning 5% would be worthwhile is an amount of money which I would not feel comfortable at all with paypal having any claim to or control over.

AnimEva said:   i wonder how long that 5% will last. Somehow I feel not very long
As soon as fwer try to deposit 5-6 figures , the promo rate will be capped or just eliminated entirely

anyone trying to deposit a large balance to earn 5 percent will be WASTING their time And will just have to go through the hassle to pull it out when the rate drops

Tempting for the rate, but I wouldn't give paypal access to $0.01 of my money for any extended period of time. Too many horror stories of locked/restricted accounts.

Looks like 15k max load... still reading the agreement though. And can only pull like 940 out a day via cash access card.
Second edit to add:
Looks like the savings account is option and separate, but can only be setup if using PayPal Debit card and have a PayPal account. Not finding any limits on this account other than 6 withdrawals a month.


edited to add fees:
Card Purchase Fee: None.
Purchase Plan:
Plan fee - $4.95 monthly
Signature Purchase Transaction Fee* -None. Included in Plan
PIN Purchase Transaction Fee* -None. Included in Plan
Foreign Transaction Fee -2.5% of the U.S. Dollar amount of the Signature or PIN Purchase Transaction

Withdraw Cash (See tips to avoid ATM fees, below)
Over the Counter Cash Withdrawal at a financial institution - $2.50 per withdrawal, plus the Foreign Transaction Fee, as applicable. A fee may be assessed by the financial institution and may vary from location to location.

Over the Counter Cash Withdrawal at a NetSpend Reload Network location - Fee may be assessed by reload location and may vary from location to location. Service not available in all reload locations.

Domestic ATM Cash Withdrawal - $1.95 per withdrawal, plus ATM owner surcharge fee, if any.

International ATM Cash Withdrawal - $1.95 per withdrawal, plus the Foreign Transaction Fee, and the ATM owner surcharge fee, if any.

ATM Transaction Decline Fee - $1.00 each

Foreign Transaction Fee -2.5% of the U.S. Dollar amount of the cash withdrawal.

Tips to avoid ATM fees:
1. Select “DEBIT” and enter your PIN to get Cash Back when making purchases at many retailers, such as grocery stores.
2. Visit any Allpoint Network ATM in the U.S. This method of cash withdrawal lets you avoid

paypal is a shady company and I would not mess with them.

"dear paypal prepaid card user

We have been alerted an eBay customer has opened a significantly not as described claim
On one or more of your eBay transactions in the amount of $5.50. Because there are no funds currently in your paypal account we have suspended your access to the $14,500 prepaid card balance pursuant to our User agreement until further notice . Please note that we cannot provide any specific details about this issue . This email address is not momitored and you will not receive a response if sending a reply. Thank you for using paypal"

FW10001 said:   "The optional savings account is made available to cardholders through The Bancorp Bank, Member FDIC. TO OPEN A SAVINGS ACCOUNT, YOU MUST ESTABLISH A PAYPAL ACCOUNT, OR LINK THIS PREPAID CARD TO YOUR EXISTING ACCOUNT. ... Interest is calculated on the Average Daily Balance of the savings account and is paid quarterly.The Annual Percentage Yield is accurate as of January 1, 2012: this is a promotional rate and may change without notice pursuant to applicable law. No minimum balance necessary to open the account or obtain the yield."

Obviously promotional rate, but about how long have you been seeing them advertise the 5%?


I saw it last Fall, but the button to request didn't work as the prepaid card was "coming soon." Today I requested the card, since there's no fee until I activate it and add a balance. I don't think I have to link it to my PayPal account, but can fund separately. Putting $100,000 in that "5% savings account" would be nice, but as mentioned above, this thing probably isn't unlimited.

From the fine print:

"Because savings account funds are withdrawn (maximum 6 such transfers per calendar month) through the card account, card transaction fees could reduce the interest earned on the savings account."

I can just see them piling up fees left and right and locking up your account for some moronic reason. No idea if ACH in/out from another bank would work. I wouldn't touch this with a ten-foot pole.

I'm thinking of holding off until I max out my rewards checking at 4%. To get over the monthly fee and earn close to 4% you need 6k invested.

SUCKISSTAPLES said:   "dear paypal prepaid card user

We have been alerted an eBay customer has opened a significantly not as described claim
On one or more of your eBay transactions in the amount of $5.50. Because there are no funds currently in your paypal account we have suspended your access to the $14,500 prepaid card balance pursuant to our User agreement until further notice . Please note that we cannot provide any specific details about this issue . This email address is not momitored and you will not receive a response if sending a reply. Thank you for using paypal"

I hope none of you reading this think SIS is being sarcastic. This is precisely how PayPal operates.

FootInMouth said:   SUCKISSTAPLES said:   "dear paypal prepaid card user

We have been alerted an eBay customer has opened a significantly not as described claim
On one or more of your eBay transactions in the amount of $5.50. Because there are no funds currently in your paypal account we have suspended your access to the $14,500 prepaid card balance pursuant to our User agreement until further notice . Please note that we cannot provide any specific details about this issue . This email address is not momitored and you will not receive a response if sending a reply. Thank you for using paypal"

I hope none of you reading this think SIS is being sarcastic. This is precisely how PayPal operates.
\

Unfortunately so. While his story is fictitious, it is consistent with Paypal's past practices.

I had sent them an e-mail asking about the connection between the paypal debit card and the savings account. They informed me there were no limits except that only 250k would be insured in the savings account. I don't think there's a strong connection between the savings account and the debit card.

Though I hate Paypal as much as a next guy, I have to notice that since this is a true banking FDIC-insured product I doubt very much Paypal would dare to apply their usual practices here.

If they would - they'd be exposed to complaints via feds - can't tell which agency exactly, but I'm sure someone here will dig it out

MADWAD said:   I had sent them an e-mail asking about the connection between the paypal debit card and the savings account. They informed me there were no limits except that only 250k would be insured in the savings account. I don't think there's a strong connection between the savings account and the debit card.
Does this mean I can open an account for $250k insured for a single account for 5%? If so, this looks like a great deal as long as 5% lasts for a reasonable amount of time to make the trouble of opening the account and moving the funds worthwhile.

MADWAD said:   Looks like 15k max load... still reading the agreement though. And can only pull like 940 out a day via cash access card.

dont think you can deposit 250k, only 15k.... and even if you managed to deposit 250k they will just kill the 5% promo and make you withdraw in $940 chunks, then freeze your card for structuring

Basically it is the Netspend prepaid card on paypal website.

https://www.netspend.com/

neophyte said:   Though I hate Paypal as much as a next guy, I have to notice that since this is a true banking FDIC-insured product I doubt very much Paypal would dare to apply their usual practices here.

If they would - they'd be exposed to complaints via feds - can't tell which agency exactly, but I'm sure someone here will dig it out


Indeed the savings account portion of this product is apparently an actual FDIC-insured savings account with a real bank:
"The optional savings account is made available to cardholders through The Bancorp Bank, Member FDIC."

Does this mean that Paypal can't pull their usual bullshit (if/when they wish) on the funds sitting in savings? (Since Paypal is not a bank, but the bank running the savings program is.)

neophyte said:   Though I hate Paypal as much as a next guy, I have to notice that since this is a true banking FDIC-insured product I doubt very much Paypal would dare to apply their usual practices here.

If they would - they'd be exposed to complaints via feds - can't tell which agency exactly, but I'm sure someone here will dig it out

If PayPal is front-end, and your account is locked/frozen, how would you get the funds out?

www.mangomoney.com has a prepaid debit card with higher interest. I have been with them for over a year now and I like it.

mcbelisle said:   www.mangomoney.com has a prepaid debit card with higher interest. I have been with them for over a year now and I like it.

$5000 max can earn 6%, after that its 0.1%

Looks good! Just wondering about the direct deposit. Will ACH (like ING, Paypal ,etc) be OK?

SUCKISSTAPLES said:   mcbelisle said:   www.mangomoney.com has a prepaid debit card with higher interest. I have been with them for over a year now and I like it.

$5000 max can earn 6%, after that its 0.1%
Then there's various fees:

  • Monthly Fee - $5.00 (waived if you load at least $500/mo onto your MangoMoney card)
  • ATM Withdrawal - $2.00 (ATM may also charge an additional fee)
  • ATM Balance Inquiry - $0.50
  • YAP Mobile Payments - $0.50
  • Close Account - $10.00 (Delivery of net available funds via check at account closure)

So they waive the $5 monthly fee if you add $500 each month to the card. Unless you spend that $500 on actual purchases, am not seeing a fee free way to withdraw those funds thereafter. At minimum there's a $2 ATM Withdrawal fee (plus a fee likely imposed by the ATM). Unless you know of a fee-free ATM, the ATM fee is likely going to be $2.50 or higher, in which case paying the $5/mo fee would be less of a hassle (and cheaper if the ATM fee is above $3).

As SiS pointed out, there's a $5K cap on the 6% savings account, so that's a potential profit of ~$300/yr (would be a little higher due to quarterly compounding). $300/yr is a whopping $25/mo, and after paying a $5 monthly fee, that lowers it to $20/mo (or 4.8%). When you're ready to close your account, you get nailed w/ a $10 close account fee. In short, seems like a lot of work for little actual gain unless you adhere to depositing and spending $500/mo on the card.

what I do to skip the atm fee is just go to grocery stores and get Cash Back. can usually get $200 at a time at grocery stores or if need money order, go to post office and then deposit that to other bank. That eliminates atm fees. I have direct deposit from my work so that eliminates those fees. I don't use yap mobile payments so don't need that. and don't intend to close my account because this is higher interest. I also don't have more than $5000 in it.



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