If you are a freelancer or gig worker who often gets paid via PayPal, the payment platform now makes it easy to earn interest on your money.
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The new PayPal Savings feature allows you to transfer money from your bank account or PayPal balance into a high yield online savings account backed by Synchrony Bank.
Synchrony Bank is FDIC insured up to $250,000 per account holder, and has financial assets totaling ~$104 billion as of 2022. The bank is also the issuer of more than 120 private label and store-branded credit cards — the largest in the nation.
PayPal Savings is currently offering 4.0% annual percentage yield (APY) for funds held in your PayPal Savings.
Freelancers and gig workers can easily transfer payments from their PayPal Balance to PayPal Savings to save money for quarterly estimated tax payments, emergencies, or even a vacation or special event.
You can even set up auto-save, so that a portion of each payment you receive via PayPal goes into your Savings account. The app also provides “buckets” so you can save with specific goals in mind.
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There is no minimum account balance and no maintenance fees, making PayPal Savings a great online tool to help you manage your money.
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This article originally appeared on GOBankingRates.com: Earn Passive Income on Your Side Gig Cash With Latest PayPal Savings Feature