When it comes to online payments, there are several different options available. For many people, the standard PayPal account is more than enough. However, a PayPal Cash Plus Account might be a better fit in some cases. It’s good to know the differences between a standard PayPal account and its spin-off to make the right choice.
In this article, we’ll quickly take you through everything you need to know about PayPal Cash Plus Accounts so that you can decide whether it suits your needs.
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What is a PayPal Cash Plus Account?
A PayPal Cash Plus Account is, by nature, a savings account where you can store funds for later use. The biggest difference between this type of account and a standard savings account is that the funds in your PayPal Cash Plus Account will be accessible 24/7, no matter where you are. Moreover, there are no restrictions on withdrawing money from your PayPal Cash Plus Account. In other words, you can take any money from the account whenever you want and use it to make payments online or withdraw it in cash. Unlike a standard savings account, there are no restrictions on how often you can make deposits to your PayPal Cash Plus Account. It’s an important distinction as it means that your money will always be ready and waiting for you whenever you need it.
This way, a PayPal Cash Plus Account can be an ideal tool for saving up a one-time amount or storing funds you might need later without having to worry about missing interest charges when you withdraw the money. And, since it is an account that is accessible through PayPal, you can easily transfer money between your standard PayPal account and the PayPal Cash Plus Account.
How to get a PayPal Cash Plus Account
To open a PayPal Cash Plus Account, you will first need to sign up for an ordinary PayPal account (if you don’t have one). You can easily do it by going to the PayPal website and clicking the Sign Up button. Then you click on More in the top right corner of the page and go to Savings. It will take you to the page where you can select your country and open a new account.
Once you have clicked the Create Account button, you will be prompted to select your preferred method of funding your account. You can add funds to your PayPal Cash Plus Account by linking your bank account, debit card, or credit card.
Once you have added enough money to cover the minimum deposit ($1), you can open an account and start using it.
The benefits of a PayPal Cash Plus Account
Using a PayPal Cash Plus Account can be beneficial in many ways, those include:
- Easy and quick to open: Unlike a standard PayPal account, there is no need to verify your identity to open a PayPal Cash Plus Account. As a result, you can open a new account much more quickly.
- Accessible 24/7: You can withdraw all the money from your PayPal Cash Plus Account if you need it.
- No restricted uses: You can use your PayPal Cash Plus Account for any online transaction or pay for goods and services.
- No interest charges: With a PayPal Cash Plus Account, you won’t have to worry about paying interest charges when you make a withdrawal.
- No monthly or annual fees: PayPal Cash Plus Accounts do not come with any monthly or annual fees like standard PayPal accounts.
- No paperwork: Unlike a standard PayPal account, there is no need to submit any paperwork when opening a PayPal Cash Plus Account.
- No credit check: Unlike a standard PayPal account, there is no need to undergo a credit check before opening a PayPal Cash Plus Account.
- No minimum balance: There is no minimum balance you need to maintain in your PayPal Cash Plus Account, which is different from a standard PayPal account.
Disadvantages of a PayPal Cash Plus Account
Before you decide on going with a PayPal Cash Plus Account, here are some drawbacks to consider.
- Difficult to control: Unlike a standard PayPal account, there is no way to keep track of how much money you have in your PayPal Cash Plus Account. As a result, you will have to remember how much money is in there and when you added it.
- No interest: Because this is a savings account, there is no interest paid on the money that you have in there.
- No tax benefits: Since the money in your PayPal Cash Plus Account isn’t earning any interest, you won’t be able to claim any tax benefits on it.
- No access to paper statements: Unlike a standard PayPal account, you won’t receive paper statements for your PayPal Cash Plus Account. Instead, you will have to log into your account to keep track of how much money is stored there.
- No legal recourse: If your PayPal Cash Plus Account is hacked or stolen, there is no legal recourse. Your account will simply be frozen and you will have to provide valid identification to unfreeze it.
Is a PayPal Cash Plus Account right for you?
A PayPal Cash Plus Account might not fit everyone. To decide whether it is right for you, you need to think about the following factors:
How often do you use PayPal? If you use it regularly, a PayPal Cash Plus Account can be helpful. Since you can withdraw any amount from your account at any time, you won’t have to leave money in your account when you don’t need it. As a result, you can keep your PayPal balance at a much lower level and avoid paying unnecessary fees.
What are you going to use PayPal for? If you use PayPal primarily for online transactions and online shopping, a PayPal Cash Plus Account can be helpful. Since you don’t have to worry about leaving money in your account when you don’t need it, you can save money in the long run, as there will be no renewal or overdraft fees.
Final words: Which payment method should you use?
When it comes to making payments online, there are many different ways to make payments available, including credit cards, debit cards, PayPal accounts, and more. Depending on your situation, each of these methods might have its advantages and disadvantages. True, there’s no one-size-fits-all solution. So, to choose what payment method fits the bill for you, you might want to think about your situation and your needs.