Savers starved for bigger returns soon will have the option of parking their money in a high-yield PayPal savings account.
The venture — PayPal Savings — will be part of the new PayPal app. Synchrony Bank will offer the savings account, which tentatively is planned to start with a 0.40% annual percentage yield (APY).
There will be no minimum balance or monthly fees attached to the account, PayPal says. Customers also can set up automatic transfers to their PayPal Savings account to build savings, and the app will feature visuals for financial goals and progress.
The PayPal app, billed as an all-in-one digital wallet, also will include several other new features, such as:
- Shopping tools to help you find exclusive deals
- A loyalty program that lets you earn rewards redeemable for cash back and PayPal shopping credit on eligible purchases you complete using PayPal
PayPal says it will start rolling out PayPal Savings to U.S. customers “in the coming months.” The new PayPal app is out now, although the new shopping tools and rewards are expected to roll out in the coming months.
Finding the best savings account rates
While a 0.40% return is considerably above what many banks are offering — the national average rate for savings accounts is a mere 0.06% — you can do even better. In fact, it’s even possible to get more than twice PayPal’s rate.
To find such opportunities, stop by Money Talks News’ Solutions Center and search for great savings account rates. Right now, you will find plenty of accounts offering rates from 0.50% to 1%.
There also are ways to boost your cash stash that go beyond parking the money in an online savings account. Money Talks News founder Stacy Johnson discussed ways to enhance returns in a recent podcast. As he says:
“Unfortunately, there’s no free lunch. Only a liar or a fool would try to convince you that you could earn 1,000 times more interest with no additional risk. But, just maybe, you can earn 1,000 times more interest without taking 1,000 times more risk.”
For more, check out “10 Ways to Earn at Least 10% on Your Savings.”