Yes, you can link a savings account to PayPal, but it works differently than a checking account
PayPal will accept a savings account as your funding source for sending money, receiving transfers, and making purchases. However, the process is slower and has more restrictions than using a checking account. When you link a savings account, PayPal treats it as a secondary funding method — it will pull from your checking account or PayPal balance first, and only use the savings account if those sources are empty or insufficient.
The main reason for this difference is timing. Savings accounts are designed for money to sit and earn interest, not for frequent transactions. When PayPal initiates a transfer from your savings account, it can take 3 to 5 business days instead of the 1 to 2 days typical for checking accounts. If you need money to move quickly — to cover a payment that's due soon or to send an urgent transfer — a savings account will not be your fastest option.
You also cannot use a savings account to receive instant transfers from other PayPal users. If someone sends you money and you want it immediately, PayPal will deposit it to your checking account or PayPal balance, not your savings account. You can transfer it to savings yourself after you receive it, but that requires an extra step.
Key Takeaways
- PayPal accepts savings accounts as a linked funding source, but treats them as a backup option after checking accounts and PayPal balances.
- Transfers from a savings account take 3 to 5 business days, compared to 1 to 2 days from a checking account.
- You cannot receive instant transfers directly into a savings account; PayPal will deposit incoming money to your checking account or balance first.
- Linking a savings account requires the same bank routing number and account number as linking a checking account, and you verify it the same way.
- Some savings accounts have withdrawal limits that may conflict with PayPal's transaction frequency, so check your bank's rules before linking.
How to link a savings account to PayPal
Start by logging into your PayPal account and going to the Wallet section. Click "Link a bank account" and enter your bank's name. PayPal will ask for your routing number and account number — both appear on the bottom left of a check, or you can find them by logging into your bank's website.
After you enter those numbers, PayPal will make two small deposits to your savings account, usually within 1 to 2 business days. These deposits are typically between $0.01 and $0.99 each. Once they arrive, you log back into PayPal, go to your bank account settings, and enter the exact amounts of those two deposits. This confirms you own the account. After verification, your savings account is linked and ready to use.
The entire process normally takes 3 to 5 business days from start to finish. If you need to use PayPal before your savings account is verified, you can add a debit or credit card as a temporary funding source instead.
When PayPal will and will not pull from your savings account
PayPal uses a priority order when you send money or make a purchase. It will first try to pull from your PayPal balance (money already in your account). If that is not enough, it will pull from your linked checking account. Only if your checking account is empty or does not have enough funds will PayPal attempt to pull from your savings account.
This means if you have both a checking and savings account linked, you may not realize your savings account is being used until you check your bank statement. If you want to force PayPal to use your savings account, you can temporarily remove your checking account from your PayPal wallet, but this is not practical for most people.
For receiving money, PayPal will not deposit incoming transfers directly into your savings account. If someone sends you money through PayPal, it goes to your PayPal balance or your linked checking account. You can then transfer it to your savings account yourself through your bank, but that is a separate transaction outside PayPal.
Withdrawal limits and savings account restrictions
Federal law limits how many withdrawals you can make from a savings account each month — historically this was six, though that rule was suspended in 2020 and has not been fully reinstated. Your specific bank may still enforce its own limits. If your bank allows only a certain number of withdrawals per month and you use PayPal frequently, you could hit that limit and have a transaction declined.
Check your savings account agreement or call your bank to find out what withdrawal limits apply. Some banks count PayPal transfers as withdrawals; others do not. If your bank does count them, and you plan to use PayPal more than a few times per month, linking your checking account instead will avoid this problem entirely.
Some banks also charge a fee for each withdrawal beyond a certain number. If you are charged $5 per excess withdrawal and PayPal pulls from your savings account multiple times, those fees can add up quickly. Again, this is a reason to use your checking account as your primary PayPal funding source.
Why a checking account is usually better for PayPal
Checking accounts have no federal withdrawal limits and no interest earnings, which means banks design them for frequent transactions. PayPal processes transfers from checking accounts faster — usually 1 to 2 business days instead of 3 to 5. If you receive money through PayPal, it can go directly to your checking account and be available immediately.
If you do not have a checking account, linking a savings account is better than using only a debit or credit card, because bank transfers have lower fees and are more secure. But if you have access to a checking account, use that as your primary PayPal funding source and keep your savings account for actual savings.
What happens if your linked savings account is closed
If you close your savings account while it is still linked to PayPal, your next attempt to use it as a funding source will fail. PayPal will not automatically remove it from your wallet — you have to do that manually. Go to your Wallet settings, find the savings account, and click "Remove" or "Unlink."
If PayPal tries to pull from a closed account and the transaction fails, you will receive an error message. Depending on what you were trying to do, the payment or transfer may be declined, or PayPal may attempt to pull from your next funding source instead. To avoid confusion, remove the account as soon as you close it.
Frequently Asked Questions
Can I receive money directly into my savings account through PayPal?
No. PayPal deposits incoming transfers to your PayPal balance or checking account, not your savings account. You can transfer the money to savings yourself after you receive it, but that requires a separate transaction through your bank.
How long does it take to verify a savings account with PayPal?
The verification process takes 3 to 5 business days total. PayPal makes two small deposits to your account (1 to 2 business days), and then you enter the amounts to confirm ownership (instant once you do it). After that, your account is linked and ready to use.
Will PayPal charge me a fee for using my savings account?
PayPal does not charge a fee for bank transfers from a savings account. However, your bank may charge a withdrawal fee if you exceed your account's monthly withdrawal limit. Check your bank's terms to see if this applies to you.
What if PayPal keeps trying to use my checking account instead of my savings account?
PayPal prioritizes checking accounts over savings accounts automatically. If you want to force it to use your savings account, you would need to remove your checking account from your wallet, but this is not practical. Instead, keep both linked and let PayPal use whichever is most efficient.
Can I link multiple savings accounts to PayPal?
Yes, you can link more than one bank account to PayPal, including multiple savings accounts. However, PayPal will still prioritize checking accounts and your PayPal balance first. You cannot choose which savings account to use — PayPal will use whichever one has funds available when needed.