The financial technology company PayPal hardly needs any introduction with nearly 223 million users worldwide and over $27.5 billion in annual revenue; they’ve been a household name since their founding in 1998.

What you may not know is that they just launched a high yield online savings account in May of last year just as interest rates started to pick up.

The account has no minimum deposit requirements, minimum balance requirements or monthly maintenance fees of any kind.

To learn more about PayPal’s online savings account continue reading our review below.

PayPal Savings Rate + Account Details

The PayPal Savings account is 100 percent digital. You can download their app here and start saving immediately.

The account has no minimum deposit requirements or monthly balance requirements and all balances are eligible for the advertised rate.

The rate is variable and can change at any time without notice.

PayPal itself is not a bank, however your deposits are FDIC-insured through their partner Synchrony Bank.

Pros and Cons

Pros:

✅ High interest rate. Roughly 11x the national average per FDIC data.

✅ No minimum balance or deposit requirements.

✅ No monthly maintenance fees.

✅ Can be opened and managed completely online or by smartphone.

✅ Helpful savings tools.

✅ FDIC insured up to $250,000.

Cons:

🛑 No joint accounts.

🛑 No additional deposit accounts such as checking, money market or CDs (certificates of deposit).

🛑 No physical branches.

🛑 No business accounts (despite many using PayPal with eBay for business).

🛑 Slow transfers from 3rd party banks that may take up to 6 days.

Savings Account Rate

Minimum Deposit	APY
$0	4.30%

To put this yield into perspective, the current national average for a savings account and a money market account sit at just 0.40% and 0.59% APY, respectively, according to recent FDIC data.

The best high yield online savings account rates are just now inching over the 5.00% APY mark following the Fed’s last rate hike in early May.

How does PayPal’s Savings Account Compare?

If you’re curious to see how PayPal’s APY (annual percentage yield) stacks up against the competition, then take a look at the table below. It compares PayPal’s savings rate with other FDIC-insured online banks and their high yield savings account rates.

Bank	APY
Bask Bank	4.75%
First Foundation Bank	4.85%
PNC Bank	4.50%
PayPal	4.30%

Money Management

Managing your money is straightforward with the PayPal app. You can transfer funds from your bank account or current PayPal balance into the savings account.

From the app you’ll also have access to the following:

• Get your paychecks up to 2 days early when you set up direct deposit.
• Mobile check cashing. Cash a physical check to your account from your phone.
• Set up bill pay. Pay your TV, utilities, internet, phone bills, etc from the app.
• Set up auto-save features and savings goals. Move money from one goal to another if priorities change.
• Get a PayPal Cash Card. No fees or credit checks required. Can be used anywhere Mastercard is accepted.
• Add cash with the app or Cash Card at 100k+ stores across the US, including Walmart, CVS, and 7-Eleven
• Buy, sell and hold cryptocurrencies.

Final Thoughts

As far as FDIC-insured online savings accounts go, PayPal’s is fairly competitive – with a yield roughly 11x the national average.

Plus the fact that the account has no maintenance fees, minimum deposit requirements or monthly balance requirements to earn the high rate makes it available to a large swathe of consumers.

PayPal Savings Account FAQs

If you still have questions about PayPal and their newly launched online savings account, don’t worry we’re here to help. Here are some of the most commonly asked questions by consumers and our responses below.

Is PayPal a Bank?

No. PayPal itself is not a bank, but it provides a high yield savings account through Synchrony Bank.

Peter Thiel, the founder of PayPal, has stated that PayPal is not a bank because it does not engage in fractional reserve banking. Essentially meaning the company does not engage in the act of borrowing and lending their customers’ funds.

Federal Regulators also reiterated this notion back in 2002, stating that PayPal is not a bank and shouldn’t be regulated as such.

That being said, PayPal has dipped their toe into banking products like the online savings account that they now offer.

In the past, they have also tested out money market accounts, lines of credit and even a debit card, which is still offered as the PayPal cash card.

Are PayPal Accounts Insured by the FDIC?

Yes, by proxy.

While PayPal itself is not a bank and is not FDIC-insured, the accounts they offer are through their partner Synchrony Bank (FDIC# 27314).

Bask Bank is the online division of Texas Capital Bank. They are a relatively new online bank that launched back in January of 2020.

Their original product was the Mileage Savings Account which is an exclusive offering for American Airlines flyers.

Today, however, they have added a number of competitive FDIC-insured deposit accounts to supplement their original product.

Bask Bank’s current product suite consists of the following:

1. Interest Savings Account
2. Certificates of Deposit (Terms 6 to 24 months)
3. Mileage Savings Account (original product)

The Interest Savings Account comes with a competitive yield. As of June, 2023 it has an APY (annual percentage yield) of 4.75%. It also comes with zero minimum balance requirements and has no monthly maintenance fees.

The most recent addition to Bask Bank’s product suite is their CDs (certificates of deposit). They only offer CDs with short terms ranging from 6 months to 2 years at the moment, but the yields are quite competitive.

If you’d prefer to have your interest paid in miles rather than dollars then you can opt for their original product – the Mileage Savings Account.

That account pays AAdvantage miles instead of interest, giving you 2.5 miles for every dollar you deposit in a year. The account used to pay just 1 mile for every dollar annually, but Bask Bank upped the ante as interest rates began to rise in 2022.

To see if any of these accounts are right for you, continue reading our review below.

Bask Bank Interest Savings Account Rate + Details

Bask Bank’s interest savings account is a high yield online savings account that comes with a variable rate. Like all of Bask Bank’s deposit accounts, this account is FDIC-insured through their parent company, Texas Capital Bank.

The account has no minimum balance requirements to earn the advertised APY and comes with zero monthly maintenance fees.

Interest Savings Account Rate

Min Balance	APY
$0	4.75%

To put this yield into perspective, the current national average for a savings account sits at just 0.40% APY, according to recent FDIC data, however, some of the top yields offered by online banks are inching up to the 5.00% APY mark.

How Does the Interest Saving Account Compare

To see how Bask Bank’s interest savings account compares with other offers on the market, take a look at the table below.

Bank	APY
CIT Bank	4.85%
My Savings Direct	4.35%
Synchrony	4.15%
Bask Bank	4.75%

Bask Bank CD Rates + Account Details

Bask Bank’s CDs require a minimum deposit of $1,000 to open. They are FDIC-insured up to the applicable limits and can only be opened online.

CD Rates

CD Term	APY
6 months	5.10%
12 months	5.00%
18 months	4.50%
24 months	4.50%

To put these yields into perspective, the current national average for 12 month and 24 month CDs sit at just 1.59% and 1.37% APY, respectively, according to FDIC data – with top yields from online banks hovering around 10-20 BPS over 5.00% APY for both terms.

How Much Can You Make From a Bask Bank CD?

How much money you can earn from a Bask Bank CD is going to depend on your deposit size, the term you select and its APY (annual percentage yield). Take a look at the table below to see how much you’d earn with each Bask Bank CD assuming a deposit size of $25,000.

CD Term	APY	Earnings
6 months	5.10%	$629.57
12 months	5.00%	$1,250.00
18 months	4.50%	$1,706.34
24 months	4.50%	$2,300.62

How do Bask Bank’s CD Rates Compare?

To see how Bask Bank’s CD rates hold up against the competition, take a look at the table below. It shows the best CD rate offered by Bask Bank along with other popular FDIC-insured online banks.

Bank	Best CD Rate (APY)
Capital One	4.75%
Morgan Stanley	5.27%
Total Direct Bank	5.16%
Bask Bank	5.10%

Grace Period and Early Withdrawal Fees

Bask Bank will send you a notice 30 days before your CD matures to let you know in advance. Upon maturity, you will have a 10 calendar day grace period in which you may add funds, withdraw funds or close out the CD entirely without incurring any fee. If nothing is done during this 10 day period, your CD will renew into the same term at the going rate at that time.

If you need access to the funds in your Bask Bank CD prior to its maturity, you will incur an early withdrawal fee. The fee structure is based on your CD’s term. See below.

CD Term	Early Withdrawal Fee
12 months or less	90 days of simple interest at the current rate
more than 12 months	180 days of simple interest at the current rate

You’ll be able to monitor your earnings and interest payments on your Bask Bank CD as statements are provided monthly.

Mileage Savings Account

With Bask Bank’s Mileage Savings Account you earn American Airlines miles (or AAdvantage Miles) rather than interest – to the tune of 2.5 miles for every $1 in your account annually.

Normally, frequent flyer miles are awarded on the spending side rather than savings. Customers are used to racking up miles when making certain purchases or booking flights with their credit card, but this account turns that model upside down.

With Bask Bank, the more money you save, the more miles you earn—no strings attached. It’ll keep your AAdvantage account active with a steady trickle of miles, plus you can earn unlimited miles and never have to worry about spending on a particular travel card or making purchases you don’t want through an online portal.

Keep in mind that like any other savings account, the rate of miles earned per dollar is variable and therefore subject to change at any time. Miles are given based on your average monthly balance per month.

How to Set Up a Mileage Savings Account

To open an account with Bask Bank, you’ll first need to be a part of the American Airlines frequent-flyer program. If you are not, this account will be of little use to you.

Assuming you are a member and you want to earn points via saving rather than spending, then click on the orange “open an account” button in the upper right on the Bask Bank website.

From here it will be a 4 step process that finalizes with transferring funds to the account.

The whole thing can be completed in minutes. The steps are as follows;

1. Get started. You’ll need an email address and mobile number.
2. Submit application. Here you’ll need things like your name, social security number, birthday and address.
3. Create Login. Simple login creation (username and password).
4. Transfer Funds. There’s no minimum deposit requirement or ongoing monthly balance requirement, but there are bonuses associated with deposits. We discuss this further down.

Bask Bank Customer Support and Consumer Sentiment

The Bask Bank website is clean and simple and about as easy-to-use as it gets. Customers leave high marks on review sites citing the ease of use of their website and having high savings rates.

Their apps perform about average in terms of ratings with their ios app receiving 3.4 stars out of 5 (down from 3.5 since the last update) and their android app also scoring 3.4 stars out of 5 (up from 3.2 since the last update).

Because Bask Bank does not have any physical branches, you will need to open your account and manage your finances online or through the mobile app.

If you struggle to set up or service your account, you can contact customer service at (833) 260-4320 or customersupport@baskbank.com.

The phones are open Monday through Friday from 7:00 AM to 10:00 PM and Saturday from 8:00 AM to 5:00 PM Central Standard Time.

About Bask Bank

Bask Bank is a division of Texas Capital Bank (member FDIC) which has been around since 1999 and has been a long-standing partner of American Airlines.

Texas Capital Bank was also a pioneer in digital banking back in the late 1990’s. To create Bask Bank, they leveraged both their digital banking expertise and their strong partnership with American Airlines.

BMO Harris Bank, based out of Chicago Illinois, is now offering an online savings account with a yield of either 4.30% APY (annual percentage yield) or 1.00% APY depending on which state you reside in.

Currently residents who do not reside in the following states (below) will stand to earn the 4.30% APY. Residents of the following states will earn only 1.00% APY:

• Arizona,
• Florida,
• Illinois,
• Indiana,
• Kansas,
• Minnesota,
• Missouri or
• Wisconsin

To learn more about BMO Harris Bank’s online savings account, continue reading our review below.

BMO Harris Bank Online Savings Account Rate + Details

BMO Harris Bank is member FDIC. Deposits held in their online savings account (as well as their CDs, money market or checking accounts) are federally insured up to $250,000 or $500,000 for joint accounts.

There are no minimum deposit requirements to open this account and no monthly balance requirements to earn the advertised APY, making it widely available to all consumers. There are also no monthly maintenance fees of any kind.

Online Savings Account Rate

Min Balance	Location	APY
$0	AZ, FL, IL, IN, KS, MN, MO, WI	1.00%
$0	all other states	4.50%

To put these yields into perspective, the current national average for a savings account and a money market account sit at just 0.40% and 0.59% APY, respectively, according to FDIC data.

That said, there are now a handful of online banks and nationally available credit unions offering high yield online savings accounts with APYs near the 5.00% mark following the FED’s last rate hike.

How Does it Compare

If you’re looking to see how BMO Harris’s online savings account rate stacks up against the competition, then take a look at the table below. We’ve compared BMO’s rate with the online savings account rates offered by other FDIC-insured financial institutions.

Institution	Min. Deposit	APY
E-Trade	$0	3.85%
PayPal	$0	4.15%
Wells Fargo	$1m	2.51%
BMO Harris	$0	4.50%

How to Open and Fund the Account

Opening your BMO Harris online savings account can be done in minutes. You’ll just need to have a few pieces of personal information readily available to complete the process.

1. Your contact information. This includes your physical address, phone number and email address.
2. Identity information. You’ll need your social security number as well as your DOB (date of birth) to confirm your identity and your U.S. citizenship.
3. Current bank or credit union information. You’ll need both the routing number of your current financial institution and your bank account number. This is the account in which your funds will be drawn to fund your new BMO Harris online savings account.

How to Close the Account

The easiest way to close the account is by calling BMO Harris at 1-888-340-2265.

Final Thoughts

If you live in one of the 42 states that are eligible for the high yield, then this online savings account from BMO Harris Bank is going to be a hard offer to beat. The fact that they have no minimum balance or opening deposit requirements casts a wide net to a lot of people who may not be able to meet the minimum requirements of similar accounts.

Oddly enough, BMO Harris Bank doesn’t allow you to navigate directly to their online savings account from BMOHarris.com, so you’ll need to navigate to the online savings account page directly.