Yes, you can transfer money from PayPal to a bank account linked to your PayPal account
PayPal lets you move funds out to a checking or savings account you've connected to your PayPal profile. The transfer goes from PayPal's system directly to your bank, and the money lands in your account within one to three business days in most cases. You don't need to do anything special — PayPal calls this a "standard transfer," and it's the most common way people get money out of PayPal.
The catch is straightforward: you can only transfer to a bank account that's already linked to your PayPal account, and that account has to be in your name. You can't send PayPal funds directly to someone else's bank account or to a bank account at a different institution than the one you've registered.
Key Takeaways
- Standard transfers from PayPal to a linked bank account take one to three business days and cost nothing.
- You must link your bank account to PayPal first by providing your routing number and account number, which PayPal verifies with two small test deposits.
- when ready transfers are available for an extra fee (usually around 1% of the amount) and land in your account within minutes instead of days.
- PayPal holds some transfers for review if the amount is large or your account is new, which can add several days to the process.
- If you need cash when ready and don't want to wait, a PayPal debit card or ATM withdrawal may be faster than a bank transfer.
How to link your bank account to PayPal before you transfer
Before you can move money out, PayPal needs to confirm that the bank account is actually yours. You do this by logging into your PayPal account, going to your wallet or account settings (the exact location changes slightly depending on whether you're on the website or app), and selecting "Link a bank account." PayPal will ask for your routing number and account number — both appear on the bottom left of a check, or you can find them by logging into your bank's website.
PayPal then sends two tiny deposits (usually under $1 each) to that account. A few business days later, you'll see those deposits in your bank account. You go back to PayPal and confirm the exact amounts of those two deposits. Once you do, PayPal knows the account is yours and you can start transferring money to it.
This verification step happens only once per bank account. After that, transfers are when ready from your end — you just request the transfer and it goes.
Standard transfers versus when ready transfers
A standard transfer is free and takes one to three business days. PayPal batches these transfers and processes them in groups, which is why they're slower but cost nothing. If you're not in a rush, this is the option most people choose.
An when ready transfer moves the money within minutes, but PayPal charges a fee — usually around 1% of the amount you're transferring, with a minimum fee of around 25 cents. So if you transfer $100, you'd pay roughly $1. The money lands in your account almost when ready, which is useful if you need cash fast or if you're about to pay a bill.
You choose which type when you request the transfer. Both options appear in your PayPal wallet or money section, and you straightforward select which one you want before confirming.
When PayPal holds a transfer for review
Sometimes PayPal doesn't process your transfer right away. Instead, it puts the transfer on hold while it reviews your account. This usually happens if the amount is unusually large for your account, if your account is brand new, if you've had disputes or chargebacks in the past, or if PayPal's system flags something as unusual.
A hold can last anywhere from a few hours to several days. You'll see a message in your PayPal account telling you the transfer is under review, but PayPal doesn't always give a specific timeline. If you need the money urgently and your transfer is on hold, contact PayPal's customer service — sometimes they can clear it faster if they can verify your identity.
Holds are frustrating but they're PayPal's way of protecting both you and themselves from fraud. If you're a new account holder or this is your first large transfer, a brief hold is normal.
What to do if your bank account isn't linked yet
If you haven't linked a bank account and you need money out of PayPal, you have a few other options while you wait for the verification deposits to arrive. You can request a PayPal debit card, which lets you withdraw cash from ATMs or spend the money directly like a regular debit card — though the card itself takes a few business days to arrive in the mail. You can also transfer money to a PayPal Cash or PayPal Cash Plus account (PayPal's own digital wallet), which you can then use to pay bills or send money to others, though you still can't get the cash out without a linked bank account.
The fastest route if you truly need cash when ready is the debit card withdrawal at an ATM, but again, you need the physical card first. If you're in a real bind and have no linked account and no debit card, your only option is to wait for the verification deposits so you can link a bank account.
Fees and limits on transfers
Standard transfers are free, and there's no limit to how much you can transfer at once — though very large transfers may trigger a review hold. when ready transfers charge a percentage fee, usually around 1%, with minimums and maximums that vary. PayPal's website shows you the exact fee before you confirm the transfer, so you always know what you're paying.
Some banks charge their own fees for receiving transfers from PayPal, though most don't. Check with your bank if you're concerned, but the vast majority of banks accept PayPal transfers at no charge to you.
Troubleshooting transfers that don't arrive
If you've requested a transfer and the money hasn't shown up after the expected time, first check your PayPal account to see if there's a message about a hold or a problem. If PayPal shows the transfer as complete but your bank doesn't show it, wait one more business day — sometimes banks are slow to post transfers even after they've received them.
If it's been more than three business days for a standard transfer or more than a few hours for an when ready transfer, and your bank still doesn't show the money, contact PayPal's customer service with your transaction ID (you can find this in your PayPal transaction history). They can track where the transfer is and tell you whether it's stuck on PayPal's end or your bank's end. If it's your bank's problem, they'll give you information to share with your bank's customer service.
Frequently Asked Questions
Can I transfer PayPal money to someone else's bank account?
No. PayPal only transfers to a bank account registered in your name on your PayPal profile. 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, but you can't move it directly to their bank account through a transfer.
What if I don't have a bank account yet?
You'll need to open a bank account before you can transfer PayPal funds out. In the meantime, you can use a PayPal debit card to withdraw cash from ATMs, or keep the money in your PayPal wallet and use it to pay bills or send money to others through PayPal.
Why is my transfer taking longer than three days?
PayPal is likely reviewing your transfer for security reasons. Large amounts, new accounts, or unusual activity can trigger a hold. Check your PayPal account for any messages about the hold, and contact PayPal customer service if you need it cleared faster.
Do I pay taxes on money I transfer from PayPal to my bank?
Transferring money you already earned doesn't create a new tax event — you've already earned the income. However, if PayPal sent you money for goods or services, that income is taxable. PayPal reports certain transactions to the IRS, so keep records of what the money was for.
Can I transfer from PayPal to a savings account instead of checking?
Yes. PayPal doesn't care whether the linked account is checking or savings — the transfer works the same way either way.