How to move money from PayPal to your bank account

PayPal holds your balance in a digital wallet until you move it to a real bank account. The transfer itself takes one to three business days, costs nothing if you use a standard transfer, and requires your bank's routing number and your account number. You can transfer all your PayPal balance or just part of it, and you can set up transfers to happen automatically.

The process differs slightly depending on whether you're using PayPal on a computer or phone, but the steps are the same: link your bank account to PayPal (if you haven't already), then initiate a withdrawal from your PayPal balance to that account.

Key Takeaways

  • Standard transfers from PayPal to a linked bank account take one to three business days and have no fee.
  • You need your bank's routing number and your account number to link your bank, which you can find on a check or by calling your bank.
  • PayPal offers instant transfers for a fee (usually 1.5% of the amount), which land in your account within 30 minutes on weekdays.
  • Once your bank account is linked, you can transfer money whenever you want, including setting up automatic transfers on a schedule.
  • If a transfer fails, PayPal will return the money to your PayPal balance within one to two business days.

Linking your bank account to PayPal for the first time

Before you can transfer money out, you must tell PayPal which bank account to send it to. Go to your PayPal account settings (on the website, click the gear icon; on the app, tap the menu icon), then select "Wallet" or "Banks and Cards." Choose "Link a Bank Account" and enter your bank's name. PayPal will ask for your routing number and account number.

Your routing number is a nine-digit code that identifies your specific bank branch. You can find it on the bottom left of any check you have, or call your bank's customer service line and ask for it. Your account number is on the bottom of checks as well, usually after the routing number. Some banks also let you find both numbers in their mobile app or online banking portal.

PayPal will then send two small deposits (usually under $1 each) to your bank account over one to two business days. Once those deposits arrive, you'll need to confirm the amounts in your PayPal account to prove you own the bank account. This verification step protects both you and PayPal from fraud.

Transferring money using the standard method

Once your bank account is verified, go to your PayPal wallet and look for a "Transfer Money" or "Withdraw" button. Select the bank account you want to send money to, enter the amount, and confirm. PayPal will show you the expected arrival date—usually one to three business days depending on your bank.

The money leaves your PayPal balance immediately, but your bank won't show it until the transfer completes. If you transfer on a Friday evening, for example, the money typically arrives on Monday or Tuesday. Weekends and bank holidays can add an extra day.

There is no fee for standard transfers. PayPal does not charge you, and most banks do not charge you either, though a small number of banks may charge a deposit fee (rare, but worth checking your bank's policy if you transfer frequently).

Using instant transfers when you need money faster

If one to three days is too long, PayPal offers instant transfers that land in your account within 30 minutes on weekdays before 9 p.m. ET. The cost is usually 1.5% of the amount you're transferring, though PayPal occasionally runs promotions that waive the fee for certain users.

To use instant transfer, select it as your transfer method instead of standard transfer. PayPal will calculate the fee and show you the exact amount that will arrive in your bank account. The money goes through immediately, and you'll see it in your bank account within 30 minutes if you transfer before 9 p.m. ET on a weekday. Transfers initiated after 9 p.m. or on weekends will process the next business day morning.

Instant transfer is useful if you need cash for an emergency or time-sensitive expense, but the fee adds up if you transfer frequently. For regular money movement, standard transfer is the better choice.

What to do if a transfer fails or gets stuck

Transfers occasionally fail because of a mismatch between the account information PayPal has and what your bank has on file. Common reasons include a typo in the account number, a closed account, or a name mismatch (for example, if your PayPal name is "John Smith" but your bank account is under "John Michael Smith").

If a transfer fails, PayPal will send you a notification with the reason. The money returns to your PayPal balance within one to two business days. You can then correct the information and try again. If the problem is on your bank's end, contact your bank directly to confirm your account details are correct, then retry the transfer.

If a transfer is taking longer than the stated timeline, check your PayPal transaction history to confirm the transfer was actually sent. Then contact your bank to ask if the deposit is pending. If neither PayPal nor your bank can locate it after five business days, contact PayPal support with your transaction ID and ask them to investigate.

Setting up automatic transfers

If you want money to move from PayPal to your bank on a regular schedule, you can set up automatic transfers. Go to your PayPal settings, find the automatic transfer option (sometimes called "Scheduled Transfers"), and choose how much you want to transfer and how often—daily, weekly, or monthly.

Automatic transfers use the standard method, so they take one to three business days and have no fee. This is useful if you use PayPal for work income and want a predictable amount to hit your bank account every week. You can pause or cancel automatic transfers at any time from your settings.

Frequently Asked Questions

Can I transfer money from PayPal to someone else's bank account?

No. PayPal transfers only go to the bank account linked to your own PayPal account. If you want to send money to someone else, use PayPal's peer-to-peer transfer feature (which sends money to their PayPal account or email) or send them a check or cash through other means.

What if my bank account is closed after I link it to PayPal?

If you try to transfer to a closed account, the transfer will fail and the money will return to your PayPal balance. Update your PayPal wallet with your new bank account information and retry the transfer. You'll need to verify the new account with the two small deposits again.

Is there a limit to how much I can transfer at once?

PayPal sets limits based on your account history and verification status. New accounts may have lower limits. Check your PayPal wallet to see your current transfer limit. If you hit the limit, you can transfer again after a waiting period (usually 24 hours) or contact PayPal support to request a higher limit.

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, the money you earned in PayPal in the first place may be taxable income depending on how you earned it. Keep records of your PayPal transactions for tax purposes.

Can I transfer from PayPal to a savings account instead of a checking account?

Yes. PayPal can send money to either a checking or savings account as long as you have the routing number and account number. The process is identical, and the transfer time is the same.