Paypal to charge £12 per year for inactive accounts (from December 2020)

Paypal to charge £12 per year for inactive accounts (from December 2020)

Amazingly in a world where more and more fee-free banking becomes the norm, Paypal are introducing fees for inactive accounts and they come into force on 16th December 2020.

NOTE: This only applies if you have a positive balance within your account and you don’t login to your account for 12 or more months, if you have £0.00 in your account you will not be charged.

What exactly does ‘inactive’ mean?

Paypal class an inactive account when the user (in the last 12 months) hasn’t:

  • sent, received or withdrawn money
  • or logged into their account

How do I become active?

Simply log in to your account before December 15th 2020.

How can I stop this from charging me in the future?

  • Use your account
  • Withdraw all funds from your account (so the account balance is £0.00)
  • Close your account (Login, go to ‘Settings’ and select ‘Close your account’ at the bottom of the ‘Account’ tab).
  • Add a reminder to your phone/calendar etc to remind yourself each year

Are Paypal not going to inform me of this directly?

PayPal says they will warn inactive account holders before they’re charged, with notifications 60, 30 and 7 days prior to any charges.

Be a financial rockstar and share this with your friends, family and co-workers to maximise savings:

More posts:

Important things to remember with everything we post:

  • If you earn over your personal allowance (currently £12,570 a year) HMRC need to get their % cut (even if the money is in cash or from another country)
  • If you’re working for yourself / earning an income on the side you need to let HMRC know – There are numerous benefits but also some drawbacks
  • You need to always ensure whatever you’re doing is legal and not hurting anyone else – be careful and always think twice
  • Some income streams may require you to have DBS check, licence, insurance or qualifications before you can start to profit from it, do your research.
  • Be careful that any additional income doesn’t compromise your studies or main income/job
  • If you work for a company check your contract, if you don’t inform them you’re working on other side projects outside of work they may have grounds to ownership on this work
Remember to follow us!