Yes, you can link a savings account to PayPal, but PayPal will treat it like a checking account
PayPal accepts savings accounts during setup and will let you send and receive money using that account as your funding source. However, PayPal does not distinguish between savings and checking accounts in its system — it processes transactions the same way regardless of which type you link. This matters because your bank may charge you fees if PayPal's transactions trigger overdraft protection or frequent withdrawal limits that your savings account has.
The link itself takes a few minutes. You provide your account and routing number, PayPal deposits two small test amounts (usually under $1 each) to verify ownership, and you confirm those amounts in your PayPal account. Once verified, you can use that savings account to fund PayPal transfers, pay for purchases, or receive money from other PayPal users.
Key Takeaways
- PayPal accepts savings accounts and processes them the same way as checking accounts, so your bank may charge fees if the account has withdrawal limits.
- Linking requires your account and routing number, plus confirmation of two small test deposits PayPal sends to your bank.
- Some savings accounts charge per withdrawal or limit the number of transfers per month, so check your bank's rules before linking.
- If you do not want PayPal to pull from your savings account, you can remove it from your PayPal account or set a different funding source as default.
Why your bank's rules matter more than PayPal's
PayPal itself does not charge you for linking a savings account or for transfers funded by that account. The cost comes from your bank. Many savings accounts allow only a limited number of withdrawals or transfers per month — federal rules once capped this at six per month, though that limit has loosened. If PayPal pulls money from your account and hits that limit, your bank may charge a fee per excess withdrawal.
Some banks also charge a fee every time money leaves a savings account, regardless of the limit. Others charge nothing for transfers to third parties like PayPal but do charge for frequent activity. The only way to know is to check your bank's fee schedule or call and ask specifically: "If I link my savings account to PayPal and use it to send money, what fees will I pay?"
If your savings account has strict limits or high fees, linking a checking account instead is usually cheaper. If you only have a savings account, you can still link it — just monitor your bank statements for unexpected fees in the first month or two.
How to link your savings account step by step
Start by logging into your PayPal account on a computer or in the app. Go to Wallet (or Settings on mobile), then select Link a bank account. PayPal will ask for your account number and routing number — you can find both on a check, your bank's website, or by calling your bank.
After you enter those numbers, PayPal sends two small deposits to your savings account, usually within one to two business days. Once they arrive, go back to PayPal, find the pending bank account in your wallet, and enter the exact amounts of those two deposits. PayPal verifies the amounts match and marks your account as confirmed.
From that point forward, you can use that savings account to fund PayPal transactions. If you have multiple bank accounts linked, you can choose which one to use each time you send money, or set one as your default funding source.
What happens if PayPal tries to pull money and your account is empty
If you attempt a PayPal transaction and your linked savings account does not have enough money, PayPal will decline the transaction. You will see an error message in the app or on the website, and the payment will not go through. The recipient will not receive the money, and you will not be charged.
PayPal does not automatically try other funding sources or overdraft your account. If you want the payment to succeed, you need to add money to your savings account and try again, or link a different account with a balance and use that instead.
Removing a savings account from PayPal
If you no longer want PayPal to access your savings account, you can unlink it in seconds. Go to Wallet or Settings, find the account in your linked banks list, and select Remove or Unlink. PayPal will stop trying to use that account immediately. Any pending transactions funded by that account will still go through if they were already authorized, but no new transactions will pull from it.
If you have already set that account as your default funding source, removing it will not automatically switch you to a different account. Your next transaction may fail if you do not have another bank account linked. You can add a new account or link a credit or debit card before making your next payment.
Using a savings account for receiving money instead of sending
If someone sends you money through PayPal, you can have it deposited directly to your linked savings account instead of sitting in your PayPal balance. Go to Wallet, select your savings account, and choose Set as transfer destination or similar language depending on your app version. PayPal will then deposit incoming transfers to that account automatically.
Transfers to your bank account usually take one to three business days. PayPal does not charge you for this, but your bank may charge a deposit fee if your savings account has unusual restrictions — this is rare, but worth confirming with your bank first if you plan to receive frequent transfers.
Frequently Asked Questions
Can I use a savings account if it is in someone else's name?
No. PayPal requires that the account holder's name match the name on your PayPal account. If the account belongs to a spouse, parent, or friend, you cannot link it. You can only link accounts in your own name.
Will PayPal charge me a fee for using a savings account?
PayPal does not charge a fee for linking or using a savings account. Your bank may charge fees depending on its withdrawal limits and policies, so check with them before linking.
What if the two test deposits do not show up in my savings account?
Test deposits usually arrive within one to two business days. If more than three days have passed, check that you entered your routing number correctly. You can try unlinking and relinking the account, or contact your bank to confirm they received the deposits from PayPal.
Can I link the same savings account to multiple PayPal accounts?
No. Each bank account can be linked to only one PayPal account. If you try to link it to a second account, PayPal will tell you it is already in use and ask you to unlink it from the first account first.
What if my savings account has a monthly withdrawal limit and I hit it?
Your bank will either decline PayPal's transaction or charge you a fee for exceeding the limit — the outcome depends on your bank's policy. Contact your bank to find out what happens, and consider linking a checking account instead if you plan to use PayPal frequently.