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Personal Finance Banking Savings

PayPal Savings Account Rates

Written by Sophia Acevedo; edited by Sarah Silbert; reviewed by Evelyn He
Updated
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After comparing PayPal Savings to the best high-yield savings accounts Business Insider's personal finance team found that its a standard offering.

PayPal Savings may be a good choice if you regularly use the PayPal app and want to open a high-yield savings account.

Since PayPal isn't a traditional brick-and-mortar bank, the account has some limitations to be aware of. For example, if you want to deposit cash into the account, you'll have to find a participating retailer since PayPal doesn't have any branches. There may be a fee of up to $3.95 for each cash deposit.

Current PayPal Savings Rate

PayPal Savings pays 4.00% APY, which is higher than the average savings account interest rate. In terms of other high-yield savings accounts, it falls in the middle of the pack, some online banks may have more competitive high-yield savings rates while others may be a bit lower.

PayPal Savings is a solid option if you're comfortable with an online-only banking experience. You'll primarily manage your account through the PayPal app and utilize PayPal Balance to manage your account.

It also lets you set up individual goals by using the account's Goals feature. You can create Goals with a specific name and target amount to help you monitor your progress.

PayPal doesn't offer other types of savings accounts, like CDs or money market accounts. If you'd like to open these, consider the best online banks, instead.

PayPal Savings
Start saving
On PayPal's website
PayPal PayPal Savings
Insider’s Rating
A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star
4.5/5
Fees

no monthly service fee

Annual Percentage Yield (APY)

4.00%

Minimum Opening Deposit

$0

Pros
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum balance requirements
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly service fees
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Create individual personal finance goals
Cons
  • con icon Two crossed lines that form an 'X'. No joint bank accounts
Product Details
  • PayPal personal account required to use PayPal Savings
  • Interest compounded daily, deposited monthly
  • Banking services provided by Synchrony Bank, Member FDIC
Show Pros, Cons, and More chevron down icon An icon in the shape of an angle pointing down.

PayPal Savings Account Overview

How the PayPal Savings Works

PayPal is a payment app that allows you to send money electronically to friends, family, or businesses. You can open a PayPal Savings with PayPal if you have a PayPal personal account.

PayPal is a fintech company, not a bank. However, banking services are provided by Synchrony Bank, an FDIC-insured bank. Money deposited in the PayPal Savings is eligible for up to $250,000 in FDIC insurance coverage.

Current PayPal Savings Rate and How It Compares

The account notably pays a competitive interest rate of 4.00% APY. In comparison, the average savings account interest rate is 0.41% APY, according to the FDIC.

There are high-yield savings accounts with even more competitive interest rates right now. Some banks offer accounts closer to 5% APY.

PayPal Savings Account Monthly Maintenance Fees and Minimum Balance Requirements

PayPal Savings has no monthly service fee and no minimum balance requirements. This is common among many online bank accounts since online banks and banking platforms don't have to pay as many overhead costs as brick-and-mortar banks.

PayPal Savings Account User Experience and Accessibility

The PayPal App is primarily an app for sending money. You can also use the app for PayPal Savings.

The app has received 4.2 out of 5 stars in the Google Play store based on over 3 million reviews and 4.8 out of 5 stars in the Apple store based on over 6 million reviews.

PayPal Customer Service and Support

Customer support is available by phone from 6 a.m. to 6 p.m. PT Monday through Sunday. If you have an account, you'll also be able to send a message. Representatives are available at 7 a.m. C to 10 p.m. CT on weekdays and 8 a.m. to 8 p.m. CT on weekends.

We also use ratings from the Better Business Bureau to see how banks respond to customer issues.

PayPal received a B+ rating from the BBB because it has a high volume of customer complaints, and its partner bank, Synchrony, has an NR rating because it is in the process of responding to previously closed complaints.

Synchrony has also been involved in a couple of recent public controversies. In 2023, Synchrony was required to pay $2.6 million in a settlement when accused of calling customers about bank accounts they didn't have. In 2021, the bank also was required to pay $3.5 million in a settlement when accused of making unreasonable phone calls to debtors living in California.

PayPal Security

PayPal offers various security methods to make sure your account information is protected. For example, you can set up a passkey in addition to your password. A passkey can be created if you have an Android or iPhone with certain versions.

If you're phone is lost or stolen, you'll still have access to your PayPal account. You'll be able to use a one-time passcode to sign in to your account, and you can update authentication settings.

That said, PayPal was required to pay a $2 million penalty in a settlement with New York State that claimed the company didn't have adequate cybersecurity training and practices. The settlement states PayPal has since addressed these issues and implemented better cybersecurity practices.

PayPal Savings Rate Pros and Cons

PayPal Savings Rate Pros

  • High interest rate on savings account
  • No minimum balance requirements or monthly bank maintenance fees
  • Savings tools to help you save for personal finance goals
  • Customer support by phone or live chat

PayPal Savings Rate Cons

  • Online-only account
  • Transferring money from a linked bank account may take up to six business days to process
  • Can't open if you use a PayPal business account (Only if you have a Paypal personal account)
  • No joint bank accounts
  • No checking account, money market accounts, or CDs

PayPal Savings Account Alternatives

PayPal Savings Account vs. Chime Savings Account

Chime® and PayPal are two online-only fintech platforms. Both have strong fee-free high-yield savings accounts with zero minimum balance requirements. Deciding between the two will likely depend on what you're looking for in your bank experience.

PayPal could be a better choice if you're searching for a competitive interest rate. PayPal Savings pays 4.00% APY (Annual Percentage Yield), while the Chime Savings Account only offers 2.00% APY. However, keep in mind rates can fluctuate, so this may change in the future.

You also might favor PayPal if you'd like a savings account that lets you save for individual goals. The Chime Savings Account doesn't have this feature.

If you are also looking to open a checking account, you will likely lean more toward Chime. You will need to open a Chime® Checking Account before you open a Chime Savings Account. In combination, the two accounts provide a lot of beneficial banking features. For example, with Chime Checking, you won't have to worry about foreign transaction fees if you're traveling overseas and using an ATM. You'll also be able to round up debit card purchases up to the nearest dollar and put spare change in your Chime Savings Account.

Chime Bank Review

PayPal Savings Account vs. Ally High Yield Savings Account

Both PayPal and Ally offer fee-free high-yield savings accounts with budgeting tools to help you save for individual goals.

You may favor Ally if you would prefer to open multiple types of bank accounts at one financial institution. Ally has a checking account, savings account, money market account, and CDs. At PayPal, you'll only be able to open a savings account.

If you're strictly searching for a high interest rate on a savings account, you might find PayPal compelling. PayPal Savings currently pays a slightly higher interest rate than the Ally Savings Account, which offers 3.80% APY.

Ally Bank Review

PayPal Savings Account vs. Apple Savings Account

You might consider the Apple Savings Account if you have an Apple Card and iPhone. It also offers a slightly lower savings account rate than the PayPal Savings Account. You can earn 3.90% and it has no monthly service fee. 

You may lean more toward PayPal if you don't want an Apple Card or you prefer PayPal's other features.

Apple Savings Account Review

Opening a PayPal Savings Account

Eligibility Requirements for the PayPal Savings Account

To be eligible for PayPal Savings, you must live in the U.S. and have a PayPal personal account. If you have a business account, you aren't eligible to get the account.

Step-by-Step Guide for Signing Up to the PayPal Savings Account

You can sign up for PayPal Savings on the platform's website or through the mobile app. When you're filling out the application, you may be asked for personal information to verify your identity, like your date of birth and Social Security number.

Initial Deposit on the PayPal Savings Account

To add money to PayPal Savings, you'll need to use your PayPal Balance. You may transfer money from a linked bank account to your savings account via your PayPal Balance. However, transfers between accounts might take up to six business days to process.

If you would like to deposit cash into your savings account, you could go to a select retailer and deposit money into your PayPal Balance (the retailer may charge a fee of up to $3.95). Then you can move money from the PayPal Balance to your savings account.

PayPal Balance has additional features, like early direct deposit and mobile check deposit.

Managing Your PayPal Savings Account

Tips for Maximizing Savings on the PayPal Savings Account

With PayPal Savings, you can make savings goals with customizable names and target amounts. Over time, you can track your progress toward your savings goal. This may be a helpful way to achieve your goals because you'll have a clear purpose and deadline assigned to it.

Understanding Fees and Charges on the PayPal Savings Account

PayPal doesn't have many common bank fees, like monthly service fees or overdraft fees. There's still some charges you should be mindful of, though.

For example, you can be charged a 5% international transaction fee for sending money abroad using your PayPal Balance Account. If you deposit cash at a participating retailer, there may be a fee of up to $3.95 per transaction.

Is the PayPal Savings Account Right For You?

You might like PayPal Savings if you use the PayPal app often and are looking for a savings account that pays a high rate.

If you prefer more of a traditional banking experience or more bank account options, you might choose another institution.

Why You Should Trust Us: How We Reviewed PayPal Savings

At Business Insider Insider, we use our bank account methodology to rate bank products and services. We use a scale of 1 to 5 stars to rate bank accounts.

To review the PayPal Savings Account, we looked at minimum opening deposit requirements, monthly service fees, miscellaneous features, and interest rates. We also consider the overall banking experience, examining customer support availability, mobile app ratings, security, and ethics. We use a weighted average to get our star rating.

PayPal Savings FAQs

What types of savings accounts does PayPal offer? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

PayPal offers a high-yield savings account. It doesn't offer a money market account or CD, though.

Are there any fees associated with PayPal Savings? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

PayPal Savings has no monthly service fee, but there may be other fees associated with an account. For example, you might charged for depositing cash at a participating retailer or using your PayPal Balance to send money internationally.

How competitive are PayPal's savings account interest rates? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

PayPal Savings offers an interest rate that's more competitive than average savings accounts. In regards to other high-yield savings accounts, it falls somewhere in the middle. It isn't the highest paying high-yield savings account, but it also isn't the lowest.

Who is eligible to open a PayPal Savings Account? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

You may open a PayPal Savings Account if you have the PayPal app and have set up a personal account. You won't be eligible for an account if you only have a PayPal business account.

How can I maximize my savings with a PayPal Savings Account? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

You can use the account's Goals feature to help you set savings goals.

Sophia Acevedo's face against a gray background
Sophia Acevedo
Banking Editor
Sophia Acevedo is a banking editor at Business Insider. She has spent three and a half years as a personal finance journalist and is an expert across numerous banking topics. ExperienceSophia leads Personal Finance Insider's banking coverage, including reviews, guides, reference articles, and news. She edits and updates articles about banks, checking and savings accounts, CD rates, budgeting, and general saving. Sophia was also a part of Business Insider's 2024 series "My Financial Life," which focused on telling stories that could help people live and spend better. She's also covered the the following stories during her time at Business Insider: Sophia has spent seven and a half years writing and editing as a journalist. She began her journalism career at her college newspaper, where she took on various roles.Sophia was nominated for an Axel Springer Award for Change in 2023 for her coverage of ABLE Accounts, tax-free savings accounts for people with disabilities. She was also a winner of a 2018 California Journalism Awards Campus Contest for her photography.She loves helping people find the best solutions for their unique needs and hopes that more people will find the tools to solve their financial problems. She’s inspired by stories of everyday people adapting to their financial circumstances and overcoming their fears around money.ExpertiseSophia's expertise includes:
  • Bank accounts
  • Savings and CD rate trends
  • Budgeting
  • Saving
  • How banks operate
EducationSophia graduated from California State University Fullerton with a degree in journalism and a minor in political science.Sophia is a member of the National Association of Hispanic Journalists.She is an avid reader across a variety of genres, and she started running in 2021. She ran in the 2024 Los Angeles Marathon.
Evelyn He smiles at the camera, standing indoors against a white wall with fairy lights in the background.
Evelyn He
Compliance and Operations Associate
Evelyn He is a compliance and operations associate for Business Insider’s Personal Finance team. Evelyn ensures content accuracy and editorial independence so readers get the most up-to-date and objective financial advice, enabling them to make informed financial decisions.ExperienceAs part of the compliance team, Evelyn helps fact check Personal Finance stories and works to make sure that the language is clear, precise, and compliant with government regulations and partner guidelines. Previously, Evelyn worked as a compliance specialist for Apellis Pharmaceuticals and a legal assistant at the law firm Morrison Mahoney.ExpertiseEvelyn is an expert in the following areas:
  • Compliance
  • Quality assurance
  • Affiliate marketing
  • Search engine optimization (SEO)
  • Content strategy
EducationEvelyn earned a bachelor’s degree in business administration from UMass Amherst and a master’s in marketing from Boston University.Evelyn has two dogs, Money and Tibber.
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Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.

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**Accounts with $250,000 or less will earn 4.25% APY, accounts with over $250,000 will earn 4.50% APY . Rate are determined by balance tiers and amount deposited.

***SoFi members who enroll in SoFi Plus with Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi Plus members are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. See the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

Chime® Disclosures:

Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.

Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.

Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.

The Annual Percentage Yield ("APY") for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of September 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.

Round Ups automatically round up debit card purchases to the nearest dollar and transfer the round up from your Chime Checking Account to your savings account.

SpotMe® on Debit is an optional, no fee overdraft service attached to your Chime Checking Account. To qualify for the SpotMe on Debit service, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account each month and have activated your physical Chime Visa® Debit Card or secured Chime Credit Builder Visa® Credit Card. Qualifying members will be allowed to overdraw their Chime Checking Account for up to $20 on debit card purchases and cash withdrawals initially but may later be eligible for a higher limit of up to $200 or more based on Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Debit limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime's sole discretion. Although Chime does not charge any overdraft fees for SpotMe on Debit, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe on Debit will not cover any non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. SpotMe on Debit Terms and Conditions.

Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.

The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.

On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.

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