You can link a savings account to PayPal, but PayPal itself is not a bank
Yes, you can add a savings account to PayPal. When you do, PayPal acts as a middleman between your savings account and the money you send or receive through PayPal. Your actual savings account stays at your bank — PayPal just connects to it so you can move money in and out.
The reason this matters: PayPal will hold money temporarily in your PayPal balance while you decide what to do with it. You can then transfer that balance to your linked savings account whenever you want. PayPal does not pay interest on money sitting in your balance, so leaving money there long-term costs you compared to keeping it in a savings account that does earn interest.
The process of linking takes about 10 minutes and requires your bank account number and routing number — the same information you would give anyone setting up a direct deposit or automatic payment.
Key Takeaways
- You link a savings account by providing your bank account number and routing number in PayPal's settings, and PayPal verifies the connection with two small test deposits.
- Once linked, you can transfer money from PayPal to your savings account at any time, though transfers typically take one to three business days.
- PayPal does not pay interest on your balance, so money sitting in PayPal costs you money compared to keeping it in a savings account.
- You can link multiple savings accounts to one PayPal account, but you can only transfer to one account at a time unless you change your default.
How to link your savings account step by step
Start by logging into your PayPal account on a computer or in the app. Go to your account settings — on the website this is usually a gear icon in the top right corner, and in the app it is the three horizontal lines (menu) at the bottom right.
Look for a section called "Wallet" or "Banks and Cards." Click "Link a Bank Account" or the plus sign next to "Bank Accounts." PayPal will ask for your bank's name, your account number, and your routing number. Your routing number is a nine-digit code specific to your bank; you can find it on the bottom left of any check, or call your bank's customer service line and ask.
After you enter this information, PayPal sends two small deposits (usually between 1 and 2 cents each) to your savings account. These deposits appear in your bank account within two to three business days. Once they arrive, you go back to PayPal and enter the exact amounts of those two deposits to confirm you own the account. After PayPal confirms the amounts match, your savings account is linked and ready to use.
Moving money from PayPal to your savings account
Once your savings account is linked, transferring money is straightforward. In your PayPal account, find the "Transfer Money" or "Withdraw" option — this is usually in the Wallet section. Select "Transfer to Your Bank," choose your linked savings account, and enter the amount you want to move.
PayPal processes the transfer when ready on their end, but your bank takes one to three business days to receive it. Weekends and bank holidays add extra time, so a transfer you start on Friday afternoon might not show up in your savings account until Wednesday. Some banks are faster than others; if you use a large national bank, transfers often arrive within one business day.
There is no fee to transfer money from PayPal to your linked savings account. PayPal makes money from other services, not from moving your money to your own bank.
What happens when you receive money through PayPal
When someone sends you money through PayPal — whether it is a friend repaying you or a payment for something you sold — that money lands in your PayPal balance first, not directly in your savings account. From there, you decide what to do with it: spend it using PayPal's debit card, send it to someone else, or transfer it to your savings account.
This is different from setting up direct deposit with your employer, where money goes straight to your bank account. With PayPal, you have a middle step. That middle step gives you flexibility — you can hold money in PayPal temporarily if you are waiting to make a purchase — but it also means your money is not earning interest while it sits there.
Linking multiple savings accounts and changing your default
You can link more than one savings account to your PayPal account. This is useful if you have accounts at different banks or want to keep money separated for different purposes. However, when you transfer money out of PayPal, you can only send it to one account per transfer.
PayPal sets one of your linked accounts as the default, meaning it is the account that appears first when you go to transfer money. To change which account is your default, go to your Wallet settings, find your linked bank accounts, and look for an option to set one as primary. You can change this any time without unlinking the other accounts.
Security and what PayPal can and cannot do with your account
When you link your savings account to PayPal, you are giving PayPal permission to pull money from that account (when you transfer out) and to receive deposits into it (when you transfer in). PayPal cannot withdraw money without your instruction, and they cannot see your full account balance or transaction history — only the account number you provided.
Your savings account itself remains at your bank. PayPal is not storing your money; they are just moving it between your PayPal balance and your bank. If PayPal ever shut down or had a security breach, your savings account at your bank would be unaffected because the money is not actually held by PayPal.
That said, keep your PayPal password strong and enable two-factor authentication (a security feature that requires a code from your phone or email when you log in from a new device). This protects both your PayPal balance and your linked bank account from unauthorized access.
When linking a savings account makes sense and when it does not
Linking a savings account is useful if you regularly receive money through PayPal and want a straightforward way to move it to your bank without fees. It is also helpful if you use PayPal to pay friends or family and want to fund those payments from your savings account instead of keeping a large balance in PayPal.
It makes less sense if you rarely use PayPal or if you prefer to keep your PayPal balance separate from your bank accounts. Some people use PayPal as a spending account and keep their savings account completely separate; that is a valid choice too.
One thing to remember: PayPal's balance does not earn interest, so if you are saving money, your savings account at your bank is the better place for it. Use PayPal as a tool to move money around, not as a place to store it long-term.
Frequently Asked Questions
How long does it take to link a savings account to PayPal?
The initial setup takes about 10 minutes. However, PayPal's verification deposits take two to three business days to arrive at your bank, and then you need to enter those amounts back into PayPal to confirm the link. The whole process usually takes about a week from start to finish.
Can I transfer money from my savings account directly into PayPal?
Yes. Once your savings account is linked, you can fund your PayPal balance by transferring money from your bank to PayPal. This is useful if you want to send money to someone through PayPal but do not have a balance yet. The transfer takes one to three business days.
What if I want to unlink my savings account from PayPal?
Go to your Wallet settings, find your linked bank accounts, and select the option to remove or unlink the account. This takes effect when ready. You can still use PayPal, but you will not be able to transfer money to that account anymore until you link it again.
Does PayPal charge a fee to link or transfer to a savings account?
No. Linking is free, and transferring money from your PayPal balance to your linked savings account is free. PayPal does charge fees for other services like sending money internationally or using a credit card to fund your balance, but not for bank transfers.
Is my money safe if I link my savings account to PayPal?
Your savings account itself is safe because it remains at your bank, which is insured by the FDIC (Federal Deposit Insurance Corporation). Your PayPal balance is also protected by PayPal's buyer protection policies, though the details vary depending on how you use PayPal. Keep your PayPal password strong and use two-factor authentication to prevent unauthorized transfers.