I have not invested in the Money Market from Paypal as I am not from the US but I did read up about it and it is just like another Unit Trust plan. Yes, it is possible to lose money in adverse situation but unlikely as long as they invest in money instruments which offers higher interests than their management fees. It only invest in US$ denominated money instruments so there is no foreign exchange risks. Adverse situation such as banking sector collapse or something to that nature. As far as I can see, the interest level offered may raise or fall depending on economic factor and the 4.88% is not guaranteed. It did fall to some 0.26% returns before.
I haven't lost any money and I've been using it since January. I haven't made much either but that is because I don't keep money in my account more then a day or two. I usually withdraw the money to one of my savings accounts that earn around 4.5%
Yeah, I thought of investing as well since I don't have a bank account and the money just sits in Paypal not generating any interest. However, as what they mentioned in their website, it is possible to lose money when the price of the share goes down. I'm not taking any chances with that. Furthermore, the investment is not insured.
Price of share?! On paypal? Do explain. I thought it was just leaving money in paypal and at the end of the month it pays out for you