How to add a savings account to PayPal
You can link a savings account to PayPal through the Wallet section of your account settings. PayPal accepts most U.S. savings accounts from traditional banks, credit unions, and online banks. The process takes about five minutes, but PayPal will verify the account by making two small test deposits—usually within one to two business days—before you can transfer money to or from it.
Once verified, your savings account becomes a funding source for payments and peer-to-peer transfers. You can also set it as your default account for withdrawals, so money you receive through PayPal goes directly to savings instead of sitting in your PayPal balance.
Key Takeaways
- Link your savings account in PayPal's Wallet settings by entering your routing and account numbers, which you can find on a check or your bank's website.
- PayPal verifies new bank accounts by depositing two small amounts (usually under $1 each) that you must confirm within 10 days to complete the link.
- Once verified, you can transfer money from PayPal to your savings account, use savings as a funding source for payments, or set it as your default withdrawal destination.
- Transfers from PayPal to a linked savings account typically take one to two business days, though some banks may take longer to post the deposit.
Step-by-step: linking your savings account
Start by logging into your PayPal account on a computer or the PayPal app. On the app, tap the menu icon (three horizontal lines) in the bottom right, then select Wallet. On the website, click Wallet in the top navigation bar.
In the Wallet section, look for a button that says Link a bank account or Add a bank. Click it and select Savings Account when prompted to choose the account type. You will need your bank's routing number and your account number. Both appear on the bottom left of any check you have from that account. If you do not have a check, log into your bank's website or app—most display routing and account numbers in the account details or settings section.
Enter your bank's name, routing number, and account number into PayPal's form. Double-check the numbers before submitting, because errors will cause verification to fail. PayPal will then ask you to confirm your full name and address as they appear on your bank account. Submit the form.
Waiting for PayPal's verification deposits
After you submit your account information, PayPal will send two small test deposits to your savings account within one to two business days. These deposits are usually between $0.01 and $0.99 each. You will see them appear in your bank account with a description that includes a code—something like "PYPL TEST 123456".
Once both deposits land in your savings account, return to PayPal and go back to the Wallet section. You should see your savings account listed as "Pending verification". Click on it and select Confirm the deposits. Enter the two amounts you received (for example, $0.23 and $0.17). PayPal will verify that the amounts match and complete the link.
You have 10 days to confirm the deposits. If you do not confirm within that window, the link will be cancelled and you will need to start over. If you cannot find the deposits in your bank account, check your spam or promotions folder for the bank's email notification, or log into your bank's website to search your transaction history.
What you can do once your account is linked
A verified savings account in PayPal acts as both a source and destination for money. You can use it to fund payments to other PayPal users, online purchases at stores that accept PayPal, or bill payments through PayPal's bill pay feature. When you choose your payment method at checkout, your linked savings account will appear as an option alongside any credit or debit cards you have added.
You can also transfer money from your PayPal balance directly to your savings account. Go to Wallet, find your savings account, and select Transfer to bank. Enter the amount and confirm. The transfer typically takes one to two business days, though some banks may take up to three to five business days to post the deposit to your account.
To make your savings account the default destination for money you receive, go to your account settings, select Transfers and payments, and choose your savings account under Automatic transfers. This means any payment someone sends you through PayPal will automatically move to savings instead of staying in your PayPal balance.
Removing or replacing a linked savings account
If you want to stop using a linked savings account, go to your Wallet, find the account, and select Remove. You can remove an account at any time. If you are replacing it with a different savings account, you do not need to remove the old one first—just add the new account and verify it the same way.
If your savings account is closed or you change banks, remove the old account from PayPal to prevent failed transfers. Then add your new account and wait for the verification deposits. Do not attempt to transfer money to a closed account; PayPal will reject the transfer and the money will return to your PayPal balance within a few business days.
Troubleshooting verification problems
If PayPal's verification deposits do not arrive within two business days, check that you entered your routing and account numbers correctly. A single wrong digit will cause the deposits to fail. Log into your bank's website and search your recent transactions for anything from PayPal. If you see nothing, contact your bank to confirm the account is active and accepts ACH transfers (the method PayPal uses).
Some banks flag small test deposits as suspicious and hold them. If your bank has a fraud alert or holds deposits for review, contact the bank and tell them to release the PayPal deposits. Once they appear in your account, return to PayPal and confirm the amounts.
If you entered the wrong amounts when confirming the deposits, PayPal will reject the confirmation and ask you to try again. You have 10 days total from when the deposits were sent. If the 10 days pass without confirmation, delete the account from your Wallet and start the linking process over.
Fees and limits for transfers
PayPal does not charge a fee to link a savings account or to transfer money from your PayPal balance to savings. However, your bank may charge a fee for incoming ACH transfers, though most do not. Check your bank's fee schedule or contact them if you are unsure.
PayPal does not publish a daily or monthly transfer limit for moving money to a linked bank account, but your bank may have limits on how much you can receive via ACH in a single day or rolling period. If you are transferring a large amount, contact your bank beforehand to confirm they will accept it.
Frequently Asked Questions
Can I link a joint savings account?
Yes, you can link a joint account as long as your name appears on the account. PayPal will verify the account using the routing and account numbers, not the account holder's name. However, only you can access the PayPal transfers—the other account holder will see the deposits in the shared account but cannot control them through PayPal.
What if I link the wrong savings account by mistake?
Remove the account from your Wallet before the verification deposits arrive or after you confirm them. If you confirmed the wrong account, you can still remove it and add the correct one. PayPal will not transfer money to an account you have removed, even if it was previously verified.
How long does it take to transfer money from PayPal to my savings account?
Transfers typically take one to two business days. Weekends and bank holidays do not count as business days. If you initiate a transfer on Friday evening, it may not arrive until Tuesday or Wednesday. Some banks take longer to post ACH transfers; check your bank's policy if money does not appear within two business days.
Can I use a savings account from an online bank?
Yes. PayPal accepts savings accounts from online banks like Ally, Marcus, Discover, and others, as long as they have a U.S. routing number and accept ACH transfers. You will need the routing number from your online bank's website, since online banks do not issue checks.
What happens if I close my savings account after linking it to PayPal?
Remove the account from your PayPal Wallet as soon as you close it. If you attempt a transfer to a closed account, PayPal will reject it and return the money to your PayPal balance within a few business days. Your bank will not accept deposits to a closed account.