PayPal Savings FAQs

What is PayPal Savings?

With PayPal Savings, you can keep your money in a deposit account to earn interest and watch your money grow. There’s no minimum balance or monthly fees.

Manage your PayPal Savings directly on PayPal's website or the PayPal app, with 24/7 access. You can add money to your PayPal Savings directly from your PayPal balance or from a linked Visa or Mastercard debit card or a confirmed bank account, via your PayPal balance.

PayPal Savings is provided by Synchrony Bank, Member FDIC. Money in PayPal Savings is held at Synchrony Bank. PayPal Savings is currently only available for personal accounts. A PayPal Balance account is required to use PayPal Savings. PayPal is a financial technology company, not a bank, and is not FDIC-insured.

How do I get started with PayPal Savings?

You can sign up on paypal.com by clicking the Finances tab, and then clicking the Savings tab. Alternatively, you can sign up in the PayPal app by going to the Accounts tab, and clicking Savings.

What are Goals with PayPal Savings?

With PayPal Savings, you can create customized goals to help you save for something specific and track your progress. Having a target keeps you motivated and setting multiple goals can help you to stay organized while keeping your eyes on the prize.

To create goals in your PayPal Savings:

1. Click Create a new goal.
2. Enter your goal name, target (optional), an amount, and choose how often (select either one time transfer or one of the recurring options).
3. Click Review.
4. Review your information and click Add Money.

You can view and manage your new goal on the PayPal Savings page.

How do I add money to PayPal Savings?

You can add money to your PayPal Savings using:

• Your PayPal balance
• A linked Visa or Mastercard debit card
• A linked and confirmed bank account

To add money to your PayPal Savings, click Add Money on the PayPal Savings page and choose from the following options:

1. Add money to General Savings or an existing Goal.
2. Select how much money you would like to add and how often (select either one-time or one of the recurring options).
3. Choose whether you would like to “Get it in seconds” by selecting a linked Visa or Mastercard debit card or your PayPal balance, or “Get it in 3-5 business days” by selecting a linked confirmed bank account.
4. Review your information and click Add Money.

When you add money from a linked bank account or debit card, it goes through your PayPal balance, then into your PayPal Savings with Synchrony Bank. There may be limits to how much money you can add to your PayPal Savings.

If your PayPal balance drops below $0, we’ll use the funds transferred to first pay down your negative balance. Any remaining funds will be reflected in your PayPal Savings.

How do I cancel Automatic Transfers to PayPal Savings?

There are 2 ways to cancel auto-save on the PayPal app or PayPal.com. Once logged in, go to the PayPal Savings page and either:

Option 1: 

1. Click Auto-save.
2. Click the Manage link next to General Savings or one of your goals.
3. Click Cancel auto-save.

Option 2: 

1. Select General Savings or one of your goals.
2. Click Manage link.
3. Click Cancel auto-save.

How do I transfer money from my PayPal Savings to my PayPal balance account?

To transfer money out of PayPal Savings, you must first transfer it to your PayPal Balance account. Here's how:

1. Select whether you’d like to transfer money from your General Savings or one of your goals.
2. Click Transfer.
3. Enter the amount to transfer and click Review.
4. Select PayPal balance.
5. Click Transfer.

If you have holds or limitations on your PayPal account, access to your PayPal Savings balance may be impacted.

What is APY? How does it relate to APR?

Annual Percentage Yield (APY) tells you the return you’ll receive on a deposit over a one-year period based on the interest rate and interest compounding frequency. Annual Percentage Rate (APR) tells you the effective rate you’ll pay a lender on a loan over a one-year period.

PayPal Savings APY is variable and can change at any time, including after the account is opened. When you open your PayPal Savings, we’ll tell you the current APY and the PayPal Savings page on the web or app will update if the APY changes.

Is PayPal Savings FDIC Insured?

With PayPal Savings, your money is deposited at Synchrony Bank, Member FDIC, and will be eligible for Federal Deposit Insurance Corporation (FDIC) deposit insurance coverage up to $250,000.00 USD. 

The coverage limit applies to all money held by you at Synchrony Bank, including PayPal Savings, and based on account ownership categories.  FDIC insurance protects against the failure of Synchrony Bank, Member FDIC, not the failure of PayPal. PayPal is not a bank and is not FDIC insured.

How do I find my monthly PayPal Savings Statements?

PayPal Savings statements are only available on the PayPal website. To locate your statement (s):

1. Select the Finances tab.
2. Click Savings.
3. Click View Statements.

Currently, statements are not available on the PayPal app.

How do I change the name on my PayPal Savings?

To change your name:

1. Go to Settings.
2. Click Change name.
3. Select your type of name change.
4. Follow the instructions on the screen and click either Continue or Update Name.

You’ll need to provide an electronic copy of your photo ID and an updated W9 form and/ or a copy of your social security card.

Include photos of both the front and back of your ID and be sure that it’s not expired. It should show the whole document clearly, with no blur, glare, or shadows. We can’t accept documents if any part is covered, blocked, or missing. All 4 corners must be visible.

How do I find my IRS Form 1099-INT (Annual Statement of PayPal Savings Interest Earned for Tax Purposes)?

To locate your tax form 1099-INT, you must be logged into your account on paypal.com. Currently, tax statements are not available on the PayPal app.

1. Click the Settings icon next to “Log out” at the top right of the page.
2. Click Statements and Taxes.
3. Under the “Tax documents” section, select the year from the dropdown.
4. Available “Tax documents for that year” are displayed. Scroll to the “Savings” section to select your Interest Income (1099-INT) form.

Not all PayPal Savings customers are issued an IRS Form 1099-INT as it’s only issued to customers that receive at least $10.00 USD in interest during the calendar year. The $10.00 USD reporting threshold is based on the aggregate amount of interest earned during the calendar year across all Synchrony Bank deposit accounts.

Why am I not eligible for PayPal Savings?

Here are some reasons why you may not be eligible for PayPal Savings:

• If you have a PayPal business account or a non-US PayPal account. PayPal Savings is currently only available for PayPal personal accounts in the US.
• Your application could be denied if we’re unable to confirm your personal information. You can re-apply for PayPal Savings after 30 days of your application being denied.

Synchrony Bank is unable to answer questions regarding PayPal Savings. Contact PayPal directly for all PayPal Savings related queries.

How do I close my PayPal Savings?

Please contact customer service if you want to close your PayPal Savings. You'll need to make sure that the balance in your PayPal Savings is zero before requesting its closure. It can take up to 3 days for the account to close.

If you move outside of the US, you should contact customer service to have your PayPal Savings closed.

After closing your PayPal Savings, you can view your monthly statements by clicking View Statements on the Savings tab when logged into your account on paypal.com. Currently, statements are not available on the PayPal app.

Why is the rate on the high-yield savings account issued by Synchrony Bank higher than the PayPal Savings rate?

While PayPal Savings is provided by Synchrony Bank, the PayPal Savings account is an entirely different product, with different features from other accounts offered by Synchrony Bank. PayPal Savings offers a highly competitive variable rate that changes from time to time and currently remains significantly higher than the national average.