Yes, you can transfer money from PayPal to your bank account
PayPal lets you move money out to a linked bank account in a few different ways, depending on how fast you need it and whether you want to pay a fee. The slowest option is free and takes three to five business days. The fastest option costs money but can land the funds in your account within an hour. Most people use the free standard transfer and straightforward plan ahead.
Before you can transfer anything, you need to link a bank account to your PayPal account. This means giving PayPal your routing number and account number — the same information you would give an employer for direct deposit. PayPal verifies the account by depositing two small amounts (usually under a dollar each) and asking you to confirm the exact numbers. Once that is done, transfers are straightforward.
Key Takeaways
- Standard transfers to your bank account are free but take three to five business days to arrive.
- when ready transfers cost between 1 and 2 percent of the amount you send and arrive within minutes, though the exact fee depends on your account type.
- You must link your bank account to PayPal first by providing your routing and account numbers, and PayPal will verify it with two small test deposits.
- The money goes to the bank account you specify at the time of transfer, so you can link multiple accounts and choose which one receives each transfer.
How to link your bank account to PayPal
Open PayPal on a computer or in the app and go to your account settings. Look for "Linked banks and cards" or "Wallet" depending on which version you are using. Select "Link a bank account" and enter your bank's name, your routing number, and your account number. You can find both numbers on the bottom left of any check you have, or by logging into your bank's website.
PayPal will then deposit two small amounts into that account — usually between 1 and 99 cents each. This takes a few business days. Once the deposits show up in your bank account, go back to PayPal and confirm the exact amounts. After you confirm, the account is linked and ready to use.
If you do not have checks or cannot find your routing number, call your bank's customer service line. They can give you both numbers over the phone. You do not need to be at a branch to get this information.
Standard transfers: free but slower
A standard transfer is free and takes three to five business days. This means if you initiate a transfer on a Monday, the money will likely arrive by Friday or the following Monday, depending on your bank. Weekends and bank holidays do not count as business days, so a transfer started on Friday afternoon might not arrive until Wednesday.
To start a standard transfer, go to your PayPal wallet, select the bank account you want to send to, and choose "Transfer to your bank." Enter the amount and confirm. PayPal will show you the expected arrival date before you finalize the transfer. Once you confirm, the transfer cannot be cancelled, so double-check the amount and the account before you submit.
Standard transfers work well if you are moving money to cover a bill that is not due for a week or more, or if you are straightforward moving money into savings and do not need it when ready.
when ready transfers: fast but with a fee
PayPal also offers when ready transfers, which arrive in your bank account within minutes instead of days. The trade-off is a fee, usually between 1 and 2 percent of the amount you transfer. So if you transfer $100, you might pay $1 to $2 for the when ready option. The exact fee depends on your account type and your bank.
To use an when ready transfer, follow the same steps as a standard transfer but select "when ready transfer" instead. PayPal will show you the fee before you confirm, so you will know exactly how much you are paying. The money should arrive in your account within an hour, though it can sometimes take longer depending on your bank's processing speed.
when ready transfers make sense if you need cash quickly — for example, if you sold something on eBay and need to pay a bill the same day. For routine transfers, the free standard option is usually the better choice.
What happens if the transfer fails
Transfers occasionally fail if your bank account information is wrong, if your account is closed, or if your bank rejects the deposit for some reason. When this happens, PayPal will return the money to your PayPal balance, usually within a few business days. You will receive a notification explaining why the transfer failed.
If a transfer fails, check that your routing number and account number are correct. Log into your bank's website to confirm both numbers match what you entered in PayPal. If they do not match, delete the old account from PayPal and link it again with the correct information. Then try the transfer once more.
If the transfer still fails and you are not sure why, contact your bank's customer service line. They can tell you whether they rejected the deposit and for what reason. Some banks block transfers from services they do not recognize, and your bank may need to approve PayPal transfers before they will go through.
Transferring to someone else's bank account
You cannot transfer money from your PayPal account directly into another person's bank account. PayPal only lets you transfer to bank accounts that are linked to your own PayPal account. If you want to send money to someone else, you have two options: send it through PayPal to their email address (if they have a PayPal account), or transfer it to your own bank account first and then send it from there using your bank's bill pay or transfer service.
If you are trying to pay someone for goods or services, PayPal's "Send money" feature is usually faster and safer than moving money to your bank first. The recipient can receive the payment directly into their PayPal account or have PayPal transfer it to their bank account on their behalf.
Fees and limits on transfers
Standard transfers are always free, no matter how much you transfer. when ready transfers cost a percentage of the amount, usually 1 to 2 percent, though this varies by account type and bank. PayPal does not charge a fee to link your bank account or to receive transfers into PayPal from other sources.
PayPal does have limits on how much you can transfer at once and how much you can transfer in a given time period. These limits depend on your account history and how long you have been using PayPal. New accounts have lower limits than established ones. If you hit a limit, PayPal will tell you when you can transfer again. You can request a higher limit by contacting PayPal's support team, though approval is not may provide.
Frequently Asked Questions
How long does it really take for a standard transfer to show up?
PayPal says three to five business days, and that is usually accurate. The exact timing depends on your bank — some banks process deposits faster than others. If you initiate a transfer on a Friday, do not expect to see it until at least Tuesday or Wednesday, since weekends do not count.
Can I transfer money from PayPal to a savings account instead of checking?
Yes. When you link your bank account, you can link either a checking or savings account. At transfer time, you choose which account to send the money to. If you have linked multiple accounts, PayPal will let you pick from the list.
What if I enter the wrong bank account number?
PayPal will attempt the transfer to the account number you provided. If that account does not exist or belongs to someone else, the transfer will fail and the money will return to your PayPal balance within a few business days. Always double-check your routing and account numbers before confirming a transfer.
Do I have to 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 your PayPal account came from selling goods or services, that income may be taxable depending on the amount and your location. Keep records of what the money came from so you can report it correctly to tax authorities if needed.
Can I set up automatic transfers from PayPal to my bank?
PayPal does not offer automatic recurring transfers. You must initiate each transfer manually. However, you can set up a transfer whenever you want, and the process only takes a minute or two once your bank account is linked.