Yes, you can transfer money from PayPal to your bank account in most cases
PayPal lets you move money to a linked bank account through their standard transfer feature. The money leaves your PayPal balance and arrives in your checking or savings account within one to three business days, depending on your bank. You need a U.S. bank account and a verified PayPal account to do this—PayPal confirms your identity and bank details before allowing transfers.
The standard transfer is free. PayPal also offers an instant transfer option that moves money the same day, but charges a small fee (usually 1% of the amount, with a minimum of $0.25 and maximum of $25 per transfer). Which option you use depends on how quickly you need the money and whether the fee is worth it to you.
Key Takeaways
- Standard transfers from PayPal to your bank account are free and take one to three business days.
- Instant transfers cost 1% of the amount you send (between $0.25 and $25 per transfer) and arrive the same day.
- Your bank account must be verified in PayPal before you can transfer money to it.
- If your transfer fails or is delayed, check that your bank account information is correct and that your PayPal account is in good standing.
How to set up a bank account in PayPal
Log into your PayPal account and go to the Wallet section. Select "Link a bank account" and enter your routing number and account number. You can find both on the bottom left of a check, or log into your bank's website to find them. PayPal will ask for your account type (checking or savings) and the name on the account.
PayPal then sends two small deposits to your bank account—usually $0.01 and $0.02—to confirm you own the account. This takes two to three business days. Once the deposits arrive, log back into PayPal, go to your bank account settings, and enter the two amounts. PayPal will verify the account and you can then transfer money to it.
If you already have a bank account linked to PayPal from a previous transfer or payment, you do not need to add it again—you can transfer to it right away.
Steps to transfer money to your bank account
Open PayPal and click "Transfer Money" from the main menu. Select "Transfer to your bank" and choose the bank account you want to send money to. Enter the amount and choose either standard transfer (free, one to three days) or instant transfer (1% fee, same day).
Review the details—the amount, the receiving bank, and the fee if you chose instant transfer. Click "Transfer Now" to complete it. PayPal will show you a confirmation number. Save this number in case you need to look up the transfer later.
Standard transfers usually land in your account within one business day, though PayPal's stated window is one to three days. Instant transfers arrive within minutes to a few hours. If your transfer does not arrive within the stated timeframe, check your PayPal transaction history to confirm it was sent, then contact your bank to see if there is a delay on their end.
When transfers fail or are delayed
A transfer can fail if your bank account information is wrong, your account is closed, or your PayPal account has a limitation or hold on it. PayPal will send you a notification if a transfer fails and usually tells you why. The money stays in your PayPal balance and you can try again.
If the bank account number or routing number is incorrect, update it in your PayPal wallet settings before trying again. If your PayPal account has a limitation (a message saying your account is restricted), you will need to resolve that with PayPal support before transfers will go through. This usually means confirming your identity or resolving a dispute.
Delays sometimes happen on your bank's side, not PayPal's. If PayPal shows the transfer as complete but your bank has not received it after three business days, contact your bank with the PayPal confirmation number. They can trace the transfer and tell you where it is.
Instant transfer vs. standard transfer: which to use
Standard transfer is free and works well if you can wait one to three days. Use it for regular money movements—moving your PayPal balance to savings, paying yourself from a business account, or moving money you do not need immediately.
Instant transfer costs money but gets your cash the same day. The fee is 1% of the amount, so transferring $100 costs $1. Use instant transfer only when you need the money urgently—to cover an unexpected expense, pay a bill that is due today, or move money for time-sensitive reasons. For most everyday transfers, the fee is not worth it.
Both options require your bank account to be verified in PayPal first. You cannot use instant transfer if your account has a limitation or if PayPal suspects fraud on your account.
What happens if you do not have a bank account linked
If you have not added a bank account to PayPal yet, you can still receive money and make purchases through PayPal, but you cannot transfer your balance out. You will need to add a bank account first. The verification process takes two to three business days, so plan ahead if you need to move money quickly.
If you do not have a bank account at all, PayPal offers a PayPal Cash or PayPal Cash Plus account, which functions like a prepaid debit card. You can use it to spend money online and in stores, withdraw cash at ATMs, and receive direct deposits. This is not the same as transferring to a bank account, but it is an option if you do not have traditional banking.
Limits on how much you can transfer
PayPal does not publish a single transfer limit that applies to everyone—limits vary based on your account age, history, and verification status. New accounts typically have lower limits than established ones. If you try to transfer more than your limit allows, PayPal will tell you the maximum amount you can send.
Your bank may also have limits on how much money can be deposited in a single day or over a rolling period. Check your bank's deposit limits if you are transferring a large amount. Some banks flag unusually large deposits for fraud review, which can delay the money from becoming available in your account even after it arrives.
Frequently Asked Questions
How long does a standard transfer really take?
PayPal says one to three business days, but most transfers land within one business day. Weekends and bank holidays add time—a transfer initiated on Friday evening might not arrive until Tuesday. If your transfer shows as complete in PayPal but has not arrived after three business days, contact your bank.
Can I transfer money from PayPal to someone else's bank account?
No. PayPal transfers only go to a bank account in your own name. To send money to someone else, use PayPal's "Send Money" feature to transfer to their PayPal account or email address, or use a different service like Venmo or a wire transfer through your bank.
What if my bank rejects the deposit from PayPal?
This is rare but can happen if your account is closed or flagged for fraud. Your bank will reject the deposit and the money returns to your PayPal balance within a few days. Contact your bank to find out why they rejected it, then update your account information in PayPal or add a different bank account.
Do I pay taxes on money I transfer from PayPal to my bank?
Transferring your own money from PayPal to your bank is not a taxable event. However, if the money in your PayPal account came from selling goods or services, that income is taxable whether it stays in PayPal or you transfer it to your bank. Keep records of all transactions for tax purposes.
Can I transfer money from PayPal to a savings account instead of checking?
Yes. When you add a bank account to PayPal, you specify whether it is checking or savings. PayPal will transfer to whichever account you have linked. You can link both a checking and savings account and choose which one to transfer to each time.