The better place to keep funds is Bank in my books. I am against keeping large funds in Paypal for the following reasons.
1. You never know when Paypal will pull your feet. For some obscure reason they can keep your account under review and freeze your funds. I have been there and it hurts your business badly.
2. Bank pays an interest while Paypal doesn’t. Something is better than nothing.
3. If you are a spend thrift, better to keep the funds in the Bank.
4. Bank gives me a better peace of mind compared with Paypal.
Be Safe than Sorry.