Yes, you can transfer money from savings to PayPal, but the method depends on your bank and what you want to do with the money once it's there
PayPal lets you link a savings account directly and move money in either direction. The transfer itself is free and usually takes one to three business days. The catch: PayPal treats a linked savings account differently depending on whether you're sending money to someone else, moving it to your PayPal balance, or withdrawing it back out. Not all banks allow savings accounts to be linked at all—some require a checking account instead.
The most common route is linking your savings account through PayPal's wallet settings, then using that account as your funding source when you send money or make a purchase. If you want to hold money inside PayPal itself (rather than just using it as a pass-through), you'll need to transfer funds into your PayPal balance first, which requires a few extra steps.
Key Takeaways
- You can link a savings account to PayPal directly, but some banks only allow checking accounts to be linked.
- Transfers from savings to PayPal take one to three business days and cost nothing.
- If you want money to sit in your PayPal balance, you must initiate a transfer into that balance; straightforward linking the account does not move money automatically.
- PayPal may place a temporary hold on your account while verifying a newly linked savings account, which can delay your first transfer by a few days.
- Withdrawing money from PayPal back to savings takes the same one to three business days and follows the same free process in reverse.
How to link a savings account to PayPal
Log into your PayPal account and go to Wallet, then select Link a bank account. PayPal will ask for your bank's routing number, your account number, and your account type. Choose Savings when prompted. Some banks appear in PayPal's dropdown list; if yours does, select it and you may be able to log in directly through PayPal's find connection. If your bank is not listed, you'll enter the routing and account numbers manually.
After you submit this information, PayPal sends two small deposits (usually between $0.01 and $0.99 each) to your savings account. These deposits appear within one to two business days. You then return to PayPal and confirm the exact amounts of those deposits. This verification step proves you control the account. Once confirmed, your savings account is linked and ready to use.
If PayPal cannot verify your account through the deposit method, the system may ask you to upload a bank statement or other proof of account ownership. This takes longer but accomplishes the same thing.
Moving money into your PayPal balance
Linking an account and transferring money into your PayPal balance are two separate actions. Once your savings account is linked, go to Wallet and select Transfer money. Choose Transfer to your PayPal balance, then select your linked savings account as the source. Enter the amount and confirm. The money will arrive in your PayPal balance within one to three business days.
Money sitting in your PayPal balance can be used to send payments to other people, make purchases on PayPal-connected websites, or held there until you withdraw it. You cannot earn interest on a PayPal balance, and PayPal does not charge a fee for holding the money. If you straightforward want to pay someone using your savings account, you do not need to transfer into your balance first—you can select your linked savings account as the funding source at checkout instead.
When your bank won't link a savings account
Some banks, particularly smaller regional banks and credit unions, do not allow savings accounts to be linked to third-party services like PayPal. Their policy may require a checking account instead. If you see an error message saying your account cannot be linked, contact your bank's customer service to confirm whether savings accounts are supported.
If your bank does not support savings account linking, you have two options. First, you can transfer money from your savings account to your own checking account (through your bank's website or app), then link the checking account to PayPal. This transfer is free and usually when ready. Second, you can use PayPal's Add bank account feature instead of Link bank account—this method does not require real-time verification and may work with savings accounts your bank otherwise blocks, though it takes longer and requires manual confirmation of small deposits.
Holds and delays on new linked accounts
When you first link a savings account, PayPal may place a temporary hold on transfers from that account. This hold typically lasts 24 to 72 hours while PayPal's fraud detection system reviews the new connection. During this time, you can see the linked account in your wallet, but you cannot transfer money from it yet.
If you have an established PayPal account with a long history of transactions, the hold may be shorter or skipped entirely. New accounts or accounts with limited activity face longer holds. You cannot speed up this process by contacting PayPal—the hold is automatic. Plan your transfers accordingly if you need the money on a specific date.
Transferring money back to your savings account
To move money from PayPal back to your savings account, go to Wallet and select Transfer money. Choose Transfer to your bank, then select your linked savings account as the destination. Enter the amount and confirm. The money will leave your PayPal balance when ready, but it takes one to three business days to appear in your savings account.
This process is free. PayPal does not charge withdrawal fees, and your bank should not charge you for receiving the deposit. If your bank does charge a fee for incoming transfers, that is a question for your bank's customer service, not PayPal.
What to do if a transfer fails or gets stuck
A transfer can fail if your savings account is closed, if you've exceeded PayPal's transfer limits, or if your bank rejects the transaction for security reasons. PayPal will send you a notification explaining why the transfer failed. Money that fails to transfer stays in your PayPal balance (if you were transferring out) or remains in your savings account (if you were transferring in).
If a transfer appears to be stuck—you initiated it more than three business days ago and it has not arrived—check your bank's transaction history to see if the deposit is pending. If it shows as pending, your bank is processing it and you should see it within one more business day. If it does not appear in your bank's pending list, contact PayPal's support through your account dashboard and provide the transaction ID. PayPal can investigate whether the transfer was actually sent.
Frequently Asked Questions
Does PayPal charge a fee to transfer money from savings?
No. Transfers between a linked savings account and your PayPal balance are free. PayPal does not charge for linking, transferring in, or transferring out. Your bank may charge a fee if it has a policy against external transfers, but most do not.
Can I use my savings account to send money to someone through PayPal without transferring to my balance first?
Yes. When you send money or make a purchase, PayPal lets you choose your funding source at checkout. Select your linked savings account and the money will be drawn directly from there. You do not need to move it into your PayPal balance first.
How long does it take for money to show up in my savings account after I transfer it from PayPal?
One to three business days is the standard window. Weekends and bank holidays do not count as business days. If it has been three business days and the money has not arrived, check your bank's pending transactions or contact PayPal support with your transaction ID.
What if PayPal asks me to verify my savings account and I don't see the small deposits?
Check your bank's transaction history carefully—the deposits may appear under a different name or description than you expect. They usually show as coming from PayPal or a PayPal subsidiary. If you genuinely cannot find them after two business days, contact your bank to confirm the account is set up to receive external transfers. Then try linking again through PayPal's manual entry option.
Can I link multiple savings accounts to the same PayPal account?
Yes. You can link as many bank accounts as you want, including multiple savings accounts from different banks. You choose which account to use as your funding source each time you transfer or make a payment.