Yes, you can link a savings account to PayPal, but with one important limit
PayPal will accept a savings account as a funding source — you can connect it, send money from it, and receive money into it. However, PayPal treats a savings account differently than a checking account for receiving payments. If someone sends you money through PayPal and you want it to land in your savings account, PayPal will deposit it there, but the transfer may take longer and you may see extra verification steps. For most people, linking a checking account alongside your savings account gives you more flexibility.
The reason for the difference comes down to how bank transfers work behind the scenes. Checking accounts are designed for frequent transactions, while savings accounts have legal limits on how many transfers you can make per month. PayPal's system is built around checking accounts, so a savings account works but isn't the primary path.
Key Takeaways
- You can link a savings account to PayPal for both sending and receiving money, but PayPal prefers checking accounts for receiving payments.
- Transfers from PayPal to your savings account may take longer and require extra verification compared to transfers to a checking account.
- If you only have a savings account, you can still use PayPal, but you may want to open a checking account for smoother transactions.
- PayPal needs your account number, routing number, and proof of ownership when you link any bank account.
What information PayPal needs to link your savings account
When you add a savings account to PayPal, you will need to provide your bank's routing number and your account number. The routing number is a nine-digit code that identifies your specific bank branch. Your account number is unique to your account at that bank. Both appear on the bottom left of your checks, or you can find them by logging into your bank's website or calling the bank directly.
PayPal will also ask you to confirm that you own the account. The most common way is through microdeposits — PayPal sends two small deposits (usually under one dollar each) to your savings account, and you tell PayPal the exact amounts. This takes a few business days. Some banks let you verify when ready through a connection called Plaid, which links your bank login directly to PayPal without sharing your password.
How receiving money works when your savings account is linked
When someone sends you money through PayPal and your savings account is your primary funding source, PayPal will deposit the funds there. The deposit usually arrives within one to three business days, though it can take longer depending on your bank. Some banks process incoming transfers on a delay, especially if the transfer arrives on a weekend or holiday.
If PayPal cannot complete the transfer for any reason — for example, if your account number was entered incorrectly — the money goes back to the sender. PayPal will notify you by email that the transfer failed. You can then update your account information and ask the sender to try again, or you can receive the money into a PayPal balance instead (which you can withdraw later).
Why a checking account may work better for you
Checking accounts are built for frequent transactions, while savings accounts are designed to hold money with fewer withdrawals. Federal law once limited savings account transfers to six per month, though that rule changed in 2020. Even so, your bank may still enforce its own limits, and PayPal's system assumes you are using a checking account.
If you send money frequently through PayPal or receive regular payments, a checking account linked to PayPal will give you fewer delays and fewer verification requests. Many banks offer free checking accounts with no minimum balance, especially if you set up direct deposit. If you do not have a checking account yet, opening one takes about 15 minutes online or in person at a bank branch.
Steps to link your savings account to PayPal
Log into your PayPal account on a computer or the PayPal app. Go to Settings (usually a gear icon), then select Wallet or Bank Accounts. Click Add a Bank Account. Enter your bank's name, your account type (select Savings), your routing number, and your account number.
PayPal will then ask how you want to verify the account. If your bank appears in the Plaid list, you can choose when ready Verification and log in with your bank credentials. If not, choose Microdeposit Verification. PayPal will send two small deposits to your account within one to two business days. Once they arrive, go back to PayPal, select the account, and enter the two amounts. PayPal will confirm the account is verified.
What happens if you have both a checking and savings account linked
You can link multiple accounts to PayPal. If you have both a checking and a savings account connected, PayPal will use your checking account as the default for sending money and receiving payments. You can change which account is the default by going to your Wallet settings and selecting a different primary account.
This setup gives you the best of both worlds: you can use your checking account for regular PayPal activity, and your savings account sits there as a backup. If your checking account has a problem or runs low on funds, you can manually transfer money from savings to checking through your bank, or you can change your PayPal default to your savings account temporarily.
Fees and limits when using a savings account
PayPal does not charge you a fee to link a savings account or to receive money into one. However, your bank may charge a fee if you exceed the transfer limit it has set, or if you make too many withdrawals in a month. Check your bank's account agreement or call them to ask about their rules for savings accounts.
PayPal also has limits on how much money you can send or receive depending on your account history and verification status. These limits are the same whether you use a checking or savings account. As you use PayPal over time and verify your identity, these limits usually increase.
Frequently Asked Questions
Can I receive PayPal payments directly into my savings account if I do not have a checking account?
Yes. PayPal will deposit money into your savings account even if it is your only linked account. Transfers may take longer and you may see extra verification steps, but the money will arrive. If you plan to use PayPal regularly, opening a free checking account will make the process smoother.
How long does it take to verify a savings account with microdeposits?
PayPal usually sends the two small deposits within one to two business days. Once they arrive in your account, you can verify when ready by entering the amounts into PayPal. The whole process typically takes three to five business days from start to finish.
What if my bank does not appear in PayPal's list of banks?
You can still link your account manually by entering your routing number and account number. PayPal will use microdeposit verification instead of when ready verification. The process takes a few extra days but works the same way.
Will PayPal charge me a fee to transfer money to my savings account?
PayPal does not charge a fee for transfers to your savings account. However, your bank may charge a fee if you exceed the number of transfers allowed per month under your account agreement. Contact your bank to ask about their specific rules.
Can I change my primary account from checking to savings after I link both?
Yes. Go to your PayPal Wallet settings, find the account section, and select which account you want as your default. PayPal will use that account for future transactions unless you change it again.