Yes, you can link a savings account to PayPal, but PayPal works better with checking accounts
PayPal will accept a savings account as your funding source for sending money, receiving payments, and making purchases. However, most people run into friction because PayPal's system is built around checking accounts. Savings accounts have withdrawal limits under federal law (six per month, though this rule has loosened), and PayPal's repeated small transactions can bump you against that cap. Your bank may also charge you a fee each time PayPal pulls money out, since savings accounts typically charge for transfers beyond the limit.
If you want to use PayPal regularly, linking a checking account avoids these problems entirely. If you only have a savings account, PayPal will work, but you should understand the limits and costs before you start.
Key Takeaways
- PayPal accepts savings accounts for funding, but federal law limits you to six withdrawals per month from a savings account, and PayPal transactions count toward that limit.
- Many banks charge a fee for each transfer beyond the monthly limit, so frequent PayPal use from a savings account can cost you money.
- You can link a savings account by providing your routing number and account number, the same way you would link a checking account.
- If you hit your withdrawal limit, PayPal will decline the transaction, and you will need to wait until the next month or use a different payment method.
- A checking account avoids these problems and is the simpler choice if you plan to use PayPal more than once or twice a month.
How to link a savings account to PayPal
Log into your PayPal account and go to Wallet, then select Link a bank account. Enter your bank's name, your routing number, and your account number. PayPal will ask you to confirm the account type — make sure you select Savings, not Checking. PayPal will then make two small test deposits (usually under $1 each) to your savings account over the next few days.
Once those deposits arrive, go back to PayPal and enter the exact amounts of both deposits to confirm ownership. After you verify, the account is linked and ready to use. The whole process takes three to five business days.
If your bank is one of the major ones (Chase, Bank of America, Wells Fargo, Citibank, and others), PayPal may offer Instant Account Verification, which skips the test deposits and confirms your account immediately using your online banking login. Not all banks support this, and it is not available for all account types, so do not count on it.
Federal withdrawal limits and how they affect PayPal
The Federal Reserve's Regulation D historically limited savings account withdrawals to six per month. That rule was suspended during the pandemic and has not been fully reinstated, but many banks still enforce it in their own terms. Even if your bank does not enforce a hard limit, they may charge you a fee (typically $5 to $10) for each withdrawal beyond six in a month.
Every time you send money from PayPal, receive a payment into PayPal, or use PayPal to pay for something, that counts as a withdrawal from your linked savings account. If you use PayPal eight times in one month, you have exceeded the limit, and your bank may charge you twice or decline the ninth transaction. This is the main reason PayPal works better with checking accounts, which have no withdrawal limits.
Check your bank's specific rules before you link a savings account. Call the customer service number on the back of your card or log into your online banking portal and look for the account terms. Knowing your bank's policy upfront saves you from surprise fees or declined transactions.
What happens when you hit your withdrawal limit
If you try to use PayPal and you have already hit your bank's six-withdrawal limit for the month, PayPal will decline the transaction. You will see an error message, and the payment will not go through. The person you were trying to pay will not receive the money, and you will not be charged.
Your only options at that point are to wait until the next calendar month (when the limit resets) or use a different payment method — a credit card, debit card, or another bank account if you have one. Some people keep a checking account specifically for this reason, even if they do most of their banking through savings.
If your bank charged you a fee for exceeding the limit, that fee appears on your bank statement, not in PayPal. You would need to contact your bank to dispute it or ask them to waive it, though banks rarely reverse these fees.
Fees your bank might charge
Banks vary widely in how they handle savings account transfers. Some charge nothing and simply enforce the six-withdrawal limit by declining transactions. Others charge $5 to $10 per transfer once you exceed the limit. A few charge a small fee on every transfer, regardless of how many you make.
PayPal itself does not charge you to link a savings account or to transfer money from it. The fees, if any, come from your bank. Before you link your savings account, log into your bank's website or call and ask: "What is your policy on savings account withdrawals, and do you charge a fee if I exceed the limit?" Write down the answer so you know what to expect.
If your bank charges per-transfer fees, you may find that using a credit card with PayPal (if you have one) is cheaper than using your savings account, even though credit cards charge PayPal a processing fee that sometimes gets passed to you.
Alternatives if a savings account does not work for you
If you do not have a checking account and your bank's savings account fees are high, consider opening a free checking account at the same bank or a different one. Most banks offer no-fee checking accounts with no minimum balance, and it takes about 15 minutes to open one online. A checking account eliminates the withdrawal limit problem entirely and costs you nothing.
If you cannot open a bank account, you can still use PayPal by linking a debit card or credit card instead. PayPal accepts Visa, Mastercard, American Express, and Discover. You will not be able to transfer money directly from PayPal to your savings account, but you can receive payments and make purchases. This is slower and less direct than a bank account link, but it works.
Another option is to use PayPal's Cash or Cash Plus account, which is a prepaid card account. You load money into it (from a bank account, debit card, or direct deposit), and then use that balance to send money or make purchases. This gives you more control over how much you spend and avoids the withdrawal limit problem, but it requires you to manage a separate account balance.
How to remove a savings account from PayPal
If you linked a savings account and want to unlink it, go to Wallet in your PayPal account, find the savings account in your list of payment methods, and click the three dots next to it. Select Remove. PayPal will ask you to confirm, and the account will be unlinked immediately. Any pending transfers will be cancelled.
You can link and unlink accounts as many times as you want. If you decide to use a checking account instead, just unlink the savings account and link the checking account using the same process.
Frequently Asked Questions
Will PayPal charge me a fee for using a savings account?
No, PayPal does not charge you. Any fees come from your bank if they charge for transfers beyond your monthly limit. Check your bank's account terms to know what to expect.
Can I receive money into my PayPal account from a savings account link?
Yes. When someone sends you money through PayPal, you can choose to have it deposited directly into your linked savings account. That counts as one withdrawal from your savings account for the month.
What if I use PayPal once a month — will I hit the withdrawal limit?
No. One transaction per month is well within the six-withdrawal limit. You would only hit the limit if you use PayPal more than six times in a single calendar month.
Can I link multiple savings accounts to PayPal?
Yes. You can link up to four bank accounts (checking or savings) to PayPal. This lets you spread transactions across accounts to avoid hitting one account's withdrawal limit, though it requires more management on your part.
Does PayPal work with online-only savings accounts?
Yes, as long as the online bank provides a routing number and account number. Most online banks (Ally, Marcus, Discover, etc.) work with PayPal. The withdrawal limits and fees are the same as with traditional banks.