FAQ’s
I received an email stating that the PayPal Money Market Fund will be closing. Is this true?
That’s correct. We will be retiring our Money Market Fund product on July 29, 2011.
Why are you closing the PayPal Money Market Fund?
Due to market conditions, the financial advantages of maintaining a PayPal Money Market Fund account have diminished for our customers. As a result, we have decided to stop offering the product.
When exactly will my Money Market Fund account be closed?
The Money Market Fund will be closed, effective July 29, 2011. No one will earn any dividends after 7/29. Any undisbursed dividends that customers have earned will be transferred into their Paypal account within 7 business days after we close the fund.
Do I need to do anything?
No action on your part is necessary; PayPal will close your Money Market Fund account automatically. You will continue to have access to your PayPal account after the Money Market Fund closes.
What happens to the balance in my MMF once I’m unenrolled?
PayPal will transfer any undisbursed dividends you’ve earned into your PayPal account within 7 business days after we close the fund.
Your PayPal account balance will remain available to you as it always has been. When the MMF is closed your PayPal account balance will no longer be invested in the Money Market Fund and held there until you are ready to use it. Instead, balances will remain with PayPal. This is not a situation where accounts are being selectively closed; rather, the Money Market Fund will cease operations in the manner approved by its board of trustees, and it will be de-registered with the SEC. So it will no longer be possible for anyone to continue to invest in shares of the Money Market Fund.
Will other similar products be offered by PayPal in the future?
We have no plans to offer a similar product at this time.
Will I still receive a 1099 at tax time for returns I’ve earned with my MMF in 2011?
Absolutely. You will receive a 1099 tax statement if you earn more than $10 in dividends in the 2011 calendar year. Your 2011 tax documents will continue to be available on the Fund Summary page in your PayPal account throughout 2012. Here’s how to access them:
- Log in to your PayPal account.
- Click Profile, then My Money on the left side of the page.
- In the PayPal Balance section, click More.
- Select PayPal Money Market Fund from the dropdown choices.
There are 2 ways you can receive a 1099 statement:
- Paper statement: If you signed up to receive a paper statement during the previous calendar year, you should receive the statement in the mail by mid-February 2012
- Electronic statement: You’ll have the ability to access your 1099 tax statement online in 2012 on the Fund Summary page in your PayPal account.
Since a rep from paypal has neglected to comment on this matter, it is highly likely to be a disinfo campaign to push people towards other banks and fdic accounts.
fact is, more people prefer non-fdic accounts.
I am one of them, and this is something i look for. I don't want my money being reported to a 3rd party, whoever they might be. it's my money, and i feel there SHOULD be some degree of confidentiality. except if it can be proven that account has been used in illegal activity. Confidentiality, protecting it's clients, and tracking down malicous users.. is something paypal has done well, for a long time. It's why i still use paypal, despite the low interest rates.
Truth#2 The state of things currently, are not bad. they are great. If you want a larger return, with reliability, invest in the companies that didn't get a bailout, and have never needed one. Hang in there and do extensive research.
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It's disturbing how fanny mae and mac posted over 300% growth in their stock prices...even as millions of their clients are being booted to the streets... not a company i would invest in... dishonest and volitile.. not something i want my money involved with directly...but paypal could certainly gain from such things, if it were something they got into while it was low.
ways to lose money, invest more then you get back. And then don't plan for it, don't diversify with known gainers.
sell before the stock gains.
selling a stock when it's low, sometimes it's better to hold, even if it shows no signs of gains. it's still paying you, and your money helps that company. selling does not pay anyone, or help anyone. particularly if you sell for less then you bought it for.
If paypal is operateing moneymarkets at a loss, which i doubt. They need to invest low, with companies that are delivering on their promises. likely new companies. And stop investing money wildly... you only lose money your spending, while not getting a return. only buy when at a surplus. this way dividends are paid from earnings, not out of pocket. or at a loss. If there is anyway we can help keep something like savings or money markets open, and the best in the market. We need to know.
myth, the market is crap and highly volitile...
truth, there are many companies makeing record profits and gains in stock prices... there needs to be someone or a group devoted to looking into start-ups or companies who are on the turn around, don't believe hype or buy-into speculation.
I'm not sure why, but there is a ton of disinformation and speculation, guideing the masses, or attempting to guide us in the wrong direction. Be vigilant, look deeper. Don't bandage your wounds by blindly investing more money! find where it's bleeding, apply bandages there, tightly, and check them often. And call for help. 
i'm not an expert, i can be wrong, any ideas or corrections are welcome 
Also, if there ever were a time, i lost money...I trust paypal would document it, and give reason. With the intention of returning the ammount at some point. Plus interest. I wouldn't be mad unless they simply took everything, and said nothing. Anything more then half of current balances, or suspending interest payments, to make up for a documented loss (public stock papers documenting the losses) If they took more then this, without proper documention, or public releases, i would be furious!! that would be shady...and abuseive, criminal even.
I feel we should be able to choose, what percentage of our money we are willing to give up, and/or an option of suspending interest payments... if we see paypal is loseing money. If paypal is loseing money, we need to know. And have options to help if at all possible... last minute closeings of accounts in an attempt to save face...often back fires.
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