Apologies for resurrecting a zombie thread as my first post, but this is the reason I created an account: to update this topic for anyone else who is looking into the Paypal Prepaid card for that nifty 5% APY. As of July 1, 2016 they are reducing the 5% max balance from $5,000 to $1,000 which, in my calculations, makes the $4.95/mo fee cost more than the interest you would earn on that $1,000.
I closed my savings (which is the one that earns the interest) and card account today, before I could be charged another $4.95 on June 21st. They of course charged me $5.95 to send a check for my money. Anyway, I had the account for almost a year and earned a nice $100 or so after all the fees were deducted, but there's no longer any reason to keep this account open, in my opinion.
May take a second look at Mango, but they had a complicated requirement for a certain number of ATM withdrawals or deposits or something, if I recall. For whatever reason I picked Paypal Prepaid over Mango when i was researching, and now I may just have to find a nice money market or something for this $5,000. Thanks and sorry again for replying to a long-dormant thread, but it seemed prudent as opposed to opening up a new topic.