Yes, you can transfer money from PayPal to a bank account linked to your PayPal account
PayPal lets you move funds to a checking or savings account you've already connected to your PayPal profile. The transfer goes from PayPal's system directly to your bank, and the money lands in your account within one to three business days for most banks. You don't need to pay a fee for standard transfers, though PayPal offers a faster option that costs money if you need the cash the same day.
The catch: you can only transfer to a bank account that's already verified on your PayPal account. You can't send money to someone else's bank account through this method, and you can't transfer to a debit card or credit card (only to a checking or savings account). If you haven't linked a bank account yet, that's the first step.
Key Takeaways
- Standard transfers from PayPal to a linked bank account take one to three business days and cost nothing.
- You must verify a bank account with PayPal before you can transfer money to it, which involves confirming two small deposits PayPal sends to that account.
- Instant transfers are available for a fee (usually $0.25 to $1.50 depending on the amount) and land in your account within 30 minutes on business days.
- PayPal holds funds in some cases—if your account is new, if you've received a large payment, or if PayPal suspects fraud—and will not let you transfer until the hold lifts.
How to link a bank account to PayPal for the first time
Go to your PayPal account settings and select "Wallet" or "Banks and Cards" (the exact label varies by app version). Choose "Link a Bank Account" and enter your routing number and account number. You can find both on a check, or log into your bank's website to see them.
PayPal will send two small deposits to that account—usually $0.01 and $0.02, or similar amounts—within one to two business days. Once they arrive, go back to PayPal, confirm the amounts, and your account is verified. Only then can you transfer money out. This verification step exists so PayPal knows you actually own the account and aren't trying to send money to someone else's bank.
Standard transfer: one to three business days, no fee
Once your bank account is verified, open PayPal and go to "Wallet" or "Transfer Money." Select "Transfer to Your Bank" and enter the amount you want to move. PayPal will show you the expected arrival date—usually one to three business days depending on your bank. Hit confirm, and the transfer starts.
The money leaves your PayPal balance immediately, but it doesn't show up in your bank account right away. Banks process transfers in batches, usually overnight, so a transfer you send on a Tuesday morning might land Wednesday or Thursday. Weekends and bank holidays add extra days. If you transfer on a Friday afternoon, expect the money Monday or Tuesday.
Instant transfer: 30 minutes or less, with a fee
PayPal also offers Instant Transfer, which moves money to your bank account within 30 minutes on business days (8 a.m. to 8 p.m. ET, Monday through Friday). The fee ranges from $0.25 to $1.50 depending on how much you're transferring—PayPal shows the exact fee before you confirm. Instant transfers don't work on weekends or holidays, and some banks take longer than 30 minutes to post the money even after PayPal sends it.
Use Instant Transfer only when you need the cash urgently. For everyday transfers, the free standard option is fine and costs you nothing.
When PayPal holds your money and won't let you transfer
PayPal sometimes freezes funds and prevents transfers for several reasons. A new account (less than 30 days old) may have a hold. A single large payment—especially from a buyer you've never dealt with—can trigger a hold while PayPal checks whether the transaction is legitimate. If you've received a refund or dispute was filed against you, PayPal may hold the money until the case closes.
When a hold is active, PayPal shows a message in your account saying when the hold will lift. You cannot transfer money during this time. If the hold seems wrong or lasts longer than PayPal said it would, contact PayPal's Resolution Center to dispute it. Holds usually last 21 days, but can be shorter or longer depending on the reason.
What happens if the transfer fails or the money doesn't arrive
A transfer can fail if you entered the wrong routing or account number, if your bank account is closed, or if PayPal detects fraud. PayPal will notify you by email and return the money to your PayPal balance within one to two business days. Check the email for the reason and correct any mistakes before trying again.
If the money left PayPal but didn't arrive in your bank account after the expected timeframe, contact your bank first. Ask them to search for the transfer using PayPal's reference number (PayPal emails this to you). If your bank says they never received it, go back to PayPal and report the missing transfer. PayPal can investigate with your bank and resend the money if needed.
Transferring money to a different bank account
You can link multiple bank accounts to PayPal and switch between them when you transfer. Go to "Wallet" or "Banks and Cards," add a new account, and verify it the same way (with the two small deposits). Once verified, you can choose which account to transfer to each time you move money.
If you want to remove an old bank account, go to your wallet settings and delete it. PayPal will stop sending money there, but any transfers already in progress will still go through. Deleting an account doesn't affect past transfers.
Frequently Asked Questions
Can I transfer money from PayPal to someone else's bank account?
No. PayPal transfers only go to a bank account registered to your own PayPal profile. To send money to someone else, use PayPal's "Send Money" feature, which transfers to their PayPal account or email address, not their bank. If they need it in their bank, they can transfer it themselves after receiving it.
What if I don't have a bank account yet?
You'll need to open a checking or savings account at a bank or credit union before you can transfer PayPal funds. Once you have an account and routing number, link it to PayPal and verify it with the two small deposits. Some online banks open accounts in minutes and verify just as fast.
Do I pay taxes on money I transfer from PayPal to my bank?
Transferring your own money to your bank is not a taxable event. However, if the money in PayPal came from selling goods or services, that income is taxable whether it stays in PayPal or moves to your bank. PayPal reports payments over $600 to the IRS, so keep records of what the money was for.
Why does PayPal say my transfer is pending after three days?
A pending transfer usually means your bank is still processing it. Contact your bank and give them PayPal's reference number. If your bank says they never received it, report it to PayPal. Transfers rarely stay pending longer than five business days; if yours has, something went wrong and needs investigation.
Can I cancel a transfer after I've sent it?
Standard transfers can sometimes be canceled within 30 minutes of sending, but only if the money hasn't left PayPal yet. Instant transfers cannot be canceled. Once a transfer is in progress, your best option is to contact PayPal support immediately and ask them to stop it. After the money reaches your bank, only your bank can reverse it, and that requires filing a dispute.