The fastest way to transfer PayPal to your bank account
PayPal offers two main routes to move money to your bank: a standard transfer that takes one to two business days, and an instant transfer that arrives within 30 minutes. Standard transfers are free. Instant transfers cost between 1% and 2% of the amount you send, with a minimum fee of 25 cents.
To use either method, you must first link a bank account to your PayPal account. PayPal will verify the account by depositing two small amounts (usually under $1 each) into your bank, then ask you to confirm those amounts in your PayPal settings. This verification step typically takes three to five business days.
Once your bank account is linked and verified, you can transfer money from your PayPal balance to that account anytime. You do not need to wait for a payment to arrive in PayPal first—you can transfer your existing balance immediately.
Key Takeaways
- Standard transfers to your bank account are free and take one to two business days; instant transfers cost 1% to 2% and arrive within 30 minutes.
- You must link and verify your bank account through PayPal before any transfer can happen, a process that takes three to five business days the first time.
- The transfer happens from your PayPal balance to your linked bank account—you initiate it in the PayPal app or website under the "Transfer Money" or "Withdraw" section.
- PayPal holds transfers for up to 24 hours if it detects unusual activity, so transfers may not arrive as quickly as the stated timeline suggests.
How to link your bank account to PayPal
Open the PayPal app or go to PayPal.com and sign in. Tap or click your profile icon, then select "Settings" or "Account Settings." Look for "Linked Banks and Cards" or "Bank Accounts" in the menu.
Click "Link a Bank Account" and enter your routing number and account number. You can find both on a check, or log into your bank's website to view them. PayPal will ask whether the account is a checking or savings account. Select the correct type.
PayPal will then deposit two small amounts into your bank account over the next three to five business days. Once those deposits appear, return to PayPal and confirm the amounts. After you confirm, your account is verified and ready to use for transfers.
Transferring money using the standard free method
In the PayPal app, tap "Transfer Money" or "Wallet." On the website, click "Transfer Money" in the left menu. Select "Transfer to Your Bank."
Enter the amount you want to transfer. PayPal will show you the available balance in your account—you cannot transfer more than this amount. Choose your linked bank account from the dropdown if you have more than one linked.
Review the transfer details and confirm. PayPal will show an estimated arrival date, usually one to two business days from the date you initiate the transfer. The money will land in your bank account on a business day; transfers initiated on weekends or holidays may take longer.
Using instant transfer for money that arrives in 30 minutes
The instant transfer option appears on the same screen where you choose the standard transfer. Select "Instant Transfer" instead of the standard option. PayPal will calculate the fee (1% to 2% of the amount, minimum 25 cents) and show it before you confirm.
The fee is deducted from your PayPal balance, so if you transfer $100 with a 1.5% fee, your bank receives $100 and PayPal deducts $101.50 from your account. Confirm the transfer, and the money should arrive in your bank account within 30 minutes on any day of the week, including weekends and holidays.
Instant transfers work only to bank accounts that have already been verified through the standard two-deposit method. You cannot use instant transfer to a newly linked account.
What happens if your transfer is delayed or held
PayPal sometimes holds transfers for up to 24 hours if the transaction looks unusual—for example, if you transfer a much larger amount than you normally do, or if you transfer from a new device or location. When this happens, PayPal sends you a notification and may ask you to confirm the transfer in your account settings.
If you see a hold, log into PayPal, find the pending transfer, and confirm it if you recognize the transaction. The hold is usually lifted within a few hours. If you do not confirm and the hold expires, the money returns to your PayPal balance and the transfer is cancelled.
Standard transfers that are not held typically arrive within one to two business days, but may take longer if your bank is slow to process incoming transfers. Contact your bank if a transfer does not arrive by the third business day after you initiated it.
Removing or changing a linked bank account
Go to "Settings" and select "Linked Banks and Cards" or "Bank Accounts." Find the account you want to remove and click the trash icon or "Remove." PayPal will ask you to confirm the removal.
You can add a new bank account at any time using the same process as the initial link. The new account will need to go through the two-deposit verification step before you can transfer money to it. If you want to transfer to a different bank account immediately, keep your current account linked until the new one is verified.
Frequently Asked Questions
Can I transfer money from PayPal if I do not have a bank account?
No. PayPal requires a linked and verified bank account to transfer money out of your account. If you do not have a bank account, you can request a PayPal Cash Card (a debit card linked to your PayPal balance) or leave the money in PayPal to use for online purchases.
What if my bank rejects the transfer?
If your bank rejects a transfer, the money returns to your PayPal balance within three to five business days. Common reasons for rejection include a closed account, incorrect account number, or a frozen account. Contact your bank to confirm the account is active and the routing and account numbers are correct, then try the transfer again.
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 PayPal came from payments for goods or services you sold, that income may be taxable depending on your location and the amount. PayPal reports payments over a certain threshold to the IRS; consult a tax professional about your specific situation.
How long does it take to verify a new bank account?
Verification typically takes three to five business days. PayPal deposits two small amounts into your account, and you must confirm those amounts in your PayPal settings. Once confirmed, the account is ready to use. If verification takes longer than five business days, contact PayPal support.
Can I transfer money to someone else's bank account using PayPal?
No. Transfers go only to a bank account linked to your own PayPal account. To send money to another person, use PayPal's "Send Money" or "Friends and Family" feature, which transfers money from your PayPal balance to their PayPal account or linked bank account.