Yes, you can transfer money from PayPal to a bank account
PayPal lets you move money out of your PayPal balance and into a checking or savings account at a bank or credit union. The money goes to whichever account you link to PayPal, and the transfer usually takes one to three business days. There is no fee for standard transfers, though PayPal offers a faster option that costs money if you need the funds sooner.
The process is straightforward once your bank account is connected to PayPal. You start the transfer from your PayPal account, choose how much to move, and pick your transfer speed. PayPal then sends the money to your bank, where it appears in your account after the stated number of days.
Key Takeaways
- Standard transfers from PayPal to a bank account are free and take one to three business days.
- You must link your bank account to PayPal first, which requires your routing number and account number.
- PayPal offers an when ready transfer option for a fee, usually around 1.75% of the amount you send.
- Transfers move money out of your PayPal balance, not from a credit card or loan tied to your PayPal account.
- Your bank may hold the money for an extra day or two, even after PayPal sends it.
How to link your bank account to PayPal
Before you can transfer money out, PayPal needs to know which bank account to send it to. You do this by adding your bank account in your PayPal settings. Go to your account, find the "Wallet" or "Money" section (the exact name depends on whether you use PayPal on a phone or computer), and look for an option to add a bank account or payment method.
PayPal will ask for your bank's routing number and your account number. Your routing number is a nine-digit code that identifies your bank. Your account number is the number of the specific account you want to use. Both appear on the bottom left of a check, or you can call your bank and ask. Some banks also show this information in their online banking portal or mobile app.
After you enter these numbers, PayPal may verify the account by making two small deposits to your bank account — usually less than a dollar each. You then log into your bank account, find these deposits, and tell PayPal the amounts. This confirms that you own the account. The whole process takes a few days because the deposits have to clear at your bank first.
Starting a standard transfer
Once your bank account is linked, transferring money is quick. In your PayPal account, find the "Transfer Money" or "Withdraw" option — again, the exact wording varies by device. Select "Transfer to Your Bank" or similar language. PayPal will show you how much money is in your PayPal balance and let you choose how much to send.
Enter the amount you want to move. PayPal will confirm the bank account it will send to and ask you to pick a transfer speed. For a standard transfer, you choose the free option, and PayPal tells you it will arrive in one to three business days. After you confirm, the transfer starts when ready, but the money does not leave your PayPal account right away — it leaves when PayPal processes the request, usually within hours.
Once the transfer is sent, you can watch its progress in your PayPal transaction history. PayPal will show you the date it sent the money and the expected arrival date at your bank. You can also check your bank account to see when the deposit appears.
Why transfers take time
A standard transfer takes one to three business days because money does not move when ready between banks. When you request a transfer, PayPal sends an electronic instruction to your bank. Your bank then processes that instruction, which takes time because banks batch transfers and process them at set times during the day.
Business days means Monday through Friday, excluding federal holidays. If you start a transfer on a Friday afternoon, it may not arrive until Tuesday or Wednesday. Weekends and holidays do not count toward the one to three days.
Even after PayPal sends the money, your bank may hold it for an extra day before it shows up in your account. This is rare with established banks, but some banks or credit unions hold deposits longer if the account is new or if the transfer is large. If your money does not arrive within three business days, contact PayPal to check the status.
when ready transfers and when they cost money
PayPal also offers when ready transfers, which move money to your bank account in minutes rather than days. This option costs money — usually around 1.75% of the amount you transfer, though the exact percentage can vary. For example, transferring $100 when ready might cost $1.75.
when ready transfers are useful if you need cash right away, but the fee adds up if you transfer frequently. For most people, the free standard transfer is the better choice unless you have an urgent need. Some PayPal accounts also have a monthly limit on how much you can transfer when ready, separate from the limit on standard transfers.
What money can and cannot be transferred
You can only transfer money that is actually in your PayPal balance — money you have received from sales, refunds, or transfers from other people. You cannot transfer money from a credit card or line of credit linked to PayPal. If you have a PayPal credit product, that is a loan, and you cannot move loan money to your bank account.
If you have money in your PayPal balance from different sources, PayPal treats it all the same. You do not pick which money to transfer; you just say how much, and PayPal sends it. Any holds or restrictions on your account may prevent you from transferring some or all of your balance, so check your account settings if a transfer is blocked.
What to do if a transfer does not arrive
If your transfer does not show up in your bank account within three business days, log into PayPal and check the transaction history. Look for the transfer you started and see what status it shows. If it says "completed" or "sent," the money has left PayPal and should be at your bank.
Contact your bank next and ask if they have received a transfer from PayPal. Give them the date you started the transfer and the amount. Your bank can tell you whether the money arrived and whether it is being held for any reason. If your bank has received it but it is on hold, ask how long the hold lasts.
If PayPal shows the transfer as pending or failed, contact PayPal support. Provide the transaction ID from your transfer history. PayPal can investigate whether the transfer was sent and help you troubleshoot if something went wrong.
Frequently Asked Questions
Can I transfer money to someone else's bank account?
No. PayPal transfers only go to the bank account you linked to your own PayPal account. If you want to send money to another person, you use PayPal's "Send Money" feature to transfer it to their PayPal account or email address, not directly to their bank.
What if I want to transfer to a different bank account?
You can add multiple bank accounts to PayPal and choose which one to transfer to each time. Go to your wallet or payment methods, add the new account the same way you added the first one, and verify it with the small deposits. Once verified, you can pick it as the destination for future transfers.
Is there a limit to how much I can transfer?
PayPal sets limits on how much you can transfer, and the limits vary based on your account age, history, and verification status. New accounts usually have lower limits. Check your account settings or contact PayPal to see your specific limit. You can request a higher limit if you need one.
Do I pay taxes on money I transfer to my bank?
Transferring money from PayPal to your bank does not create a tax event by itself. However, the money you received in the first place may be taxable income depending on where it came from. If you sold goods or services, that income is taxable. If someone sent you a gift, it usually is not. Keep records of where your PayPal money came from.
Can I transfer money back to PayPal after I move it to my bank?
Yes. Once money is in your bank account, you can transfer it back to PayPal by linking your bank account as a payment method and using it to add funds to your PayPal balance. This takes the same one to three business days as a withdrawal.