Yes, you can transfer money from PayPal to a bank account linked to your PayPal account

PayPal lets you send money to a bank account you've connected to your PayPal profile. The process takes a few clicks, but the money doesn't arrive when ready — it usually takes one to three business days, depending on your bank. There's no fee for standard transfers, though PayPal offers a faster option that costs money if you need the funds sooner.

Before you can transfer anything, you need to have linked a bank account to PayPal and verified that it's yours. This means PayPal will make two small deposits to that account (usually under a dollar each) and you'll need to confirm the amounts to prove you control the account. Once that's done, transferring money is straightforward.

Key Takeaways

  • Standard transfers from PayPal to a linked bank account are free and take one to three business days.
  • You must link and verify a bank account in your PayPal settings before you can transfer money to it.
  • PayPal offers when ready transfers for a fee if you need the money the same day, but this costs between 1% and 2% of the amount you send.
  • Transfers only work to accounts in your own name — you cannot send PayPal money directly to someone else's bank account through this method.

How to link a bank account to PayPal

Start by logging into your PayPal account on a computer or the PayPal app. Go to your account settings — on the website, this is usually a gear icon in the top right; on the app, tap the menu icon and look for "Settings." Find the section labeled "Wallet" or "Bank and Cards" depending on which version you're using.

Click or tap "Link a Bank Account." PayPal will ask for your bank's name, your account number, and your routing number. Your routing number is a nine-digit code that identifies your specific bank branch; you can find it on a check, by calling your bank, or by searching your bank's name plus "routing number" online. Once you enter this information, PayPal will tell you it's pending verification.

Within a few days, PayPal will deposit two small amounts (usually between 1 and 99 cents each) into your bank account. When you see these deposits in your bank statement, go back to PayPal and enter the exact amounts. This confirms you own the account. After that, the account is verified and ready to use.

The standard transfer process and timeline

Once your bank account is verified, transferring money is straightforward. Log into PayPal, go to your Wallet, and look for a button that says "Transfer Money" or "Move Money." Select the bank account you want to send to, enter the amount, and confirm. PayPal will show you the expected arrival date before you finalize the transfer.

Standard transfers are free and typically arrive within one to three business days. The exact timing depends on your bank — some process transfers faster than others. Weekends and bank holidays can add time, so a transfer you start on Friday afternoon might not show up until Tuesday. PayPal will give you a reference number for the transfer; keep this in case you need to contact PayPal or your bank about where the money went.

If you transfer money on a day your bank is closed, the clock doesn't start until the next business day. So a transfer initiated on Saturday won't begin processing until Monday morning.

when ready transfers cost money but arrive the same day

PayPal also offers when ready transfers, which move money to your bank account within minutes instead of days. This service costs between 1% and 2% of the amount you transfer — the exact percentage depends on your account history and PayPal's current pricing. For example, transferring $100 with a 1.5% fee would cost you $1.50, so you'd receive $98.50 in your bank account.

To use when ready transfer, follow the same steps as a standard transfer, but select "when ready Transfer" instead of the standard option. PayPal will show you the fee before you confirm, so you'll know exactly what it costs. Not all bank accounts may have access to for when ready transfers — some smaller banks or credit unions may not be connected to PayPal's when ready transfer network. If your bank isn't available, PayPal will tell you when you try to set it up.

What happens if a transfer fails or gets stuck

Transfers occasionally fail, usually because the bank account information was entered incorrectly or the account was closed. If this happens, PayPal will notify you and the money returns to your PayPal balance within a few business days. Check your PayPal transaction history to see the status — it will say "failed" or "returned" with a reason.

If a transfer is taking longer than expected, first check your bank's website or app to see if it's already arrived — sometimes it shows up in your bank before PayPal marks it as complete. If it's not there and it's been more than three business days, contact your bank with the PayPal reference number. Your bank can trace the transfer and tell you where it is. PayPal's customer service can also investigate, but your bank usually has faster access to this information.

Limits on how much you can transfer

PayPal sets limits on how much money you can transfer in a single transaction and over a period of time. These limits vary based on your account age, verification status, and transaction history. New accounts typically have lower limits than established ones. You can see your specific limit by starting a transfer — PayPal will show you the maximum amount available.

If you need to transfer more than your limit allows, you can make multiple transfers. There's no limit on the number of transfers you can do, only on the size of each one. If you regularly transfer large amounts, your limit may increase over time as PayPal gains confidence in your account.

Transferring money you received from others

If someone sent you money through PayPal, you can transfer that balance to your bank account the same way. The money sits in your PayPal account until you move it. Some people keep money in PayPal to use for online shopping or to send to others, but if you want it in your actual bank account, the transfer process is identical.

One thing to know: if you received money as a payment for goods or services, PayPal may hold it for a period of time before you can transfer it. This is PayPal's way of preventing fraud. The hold period is usually 21 days, but it can be shorter if you have a strong account history. You'll see the hold date in your transaction details.

Frequently Asked Questions

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

No. Transfers from PayPal to a bank account only work to accounts in your own name. If you want to send money to someone else, you can use PayPal's "Send Money" feature to transfer it to their PayPal account or email address instead. They would then need to transfer it to their own bank account.

What if my bank account is closed or I want to transfer to a different bank?

You can link a new bank account to PayPal at any time. Go to your Wallet settings, remove the old account, and add the new one. You'll need to verify the new account with the two small deposits before you can use it for transfers. You can keep multiple bank accounts linked to PayPal if you want.

Do I pay taxes on money I transfer from PayPal to my bank account?

Transferring your own money from PayPal to your bank account is not a taxable event. However, the money itself may be taxable depending on how you earned it. If you received it as income or payment for work, you owe taxes on it. PayPal reports payments over a certain threshold to the IRS, so keep records of what the money was for.

Why is my transfer taking longer than three days?

Delays usually happen because the transfer was initiated on a weekend or holiday, or because your bank processes transfers slowly. Check your bank's website to confirm it hasn't already arrived. If it's been more than five business days, contact your bank with the PayPal reference number — they can locate the transfer and tell you what's happening.

Can I cancel a transfer after I've started it?

If the transfer hasn't processed yet, you may be able to cancel it through your PayPal transaction history. Once it's left PayPal and is in your bank's system, you cannot cancel it through PayPal — you'd need to contact your bank. when ready transfers cannot be cancelled once initiated because they complete within minutes.