Personal gifts from an existing balance are still free for both sender and receiver.
Therein lies the rub. Most folks don't understand this. You have to have an existing Paypal balance to send money for free.
I don't like keeping very much money in my PP account (I'd rather have in my personal checking acct, where PP can't TOUCH IT) but I do have to keep a few bucks in there to be able to complete a transaction quickly with no fees if I need to.
