Yes, you can link a savings account to PayPal, but the connection works differently than linking a checking account

PayPal will accept a savings account as a funding source for payments and transfers. When you add a savings account, PayPal uses the same verification process it uses for checking accounts: two small deposits appear in your account within one to two business days, and you confirm the amounts to prove you own the account. Once verified, you can send money from that savings account through PayPal to other people or businesses.

The real difference shows up in timing and fees. Transfers from a savings account to another person's PayPal account or bank account take the same number of days as transfers from checking—usually one to three business days depending on the receiving bank. But some savings accounts charge a fee when money leaves the account, particularly if you exceed the federal limit on savings withdrawals in a month. That limit is no longer enforced by law, but many banks still charge fees if you go over six or seven transfers per month from savings.

PayPal itself does not charge you to link a savings account or to transfer money from it. The fees, if any, come from your bank.

Key Takeaways

  • PayPal verifies a savings account the same way it verifies checking: two small test deposits that you confirm within one to two business days.
  • Once linked, a savings account works as a funding source for PayPal payments and transfers at no cost from PayPal itself.
  • Your bank may charge a fee if you make more than six or seven transfers out of savings in a single month, depending on the account terms.
  • Transfers from a linked savings account take one to three business days, the same as transfers from checking.

How to add a savings account to PayPal

Start in your PayPal account settings. On the website, go to Settings (the gear icon), then select Wallet on the left side. On the mobile app, tap the menu icon, then Wallet. From there, choose Link a bank account.

Enter your bank's name or routing number. PayPal will ask for your account number and confirm that the account is a savings account. You do not need to provide the account type yourself—PayPal asks the bank directly. Once you submit, PayPal tells you when to expect the two verification deposits.

Check your savings account one to two business days later. The deposits are usually between $0.01 and $0.99 each. Log back into PayPal, go to Wallet, find the account you just added, and select Confirm. Enter the two amounts exactly as they appear in your bank statement. PayPal confirms the account when ready.

When your bank charges fees for savings transfers

Federal law once limited savings account withdrawals to six per month, and many banks built fee structures around that limit. The limit was suspended in 2020 and never reinstated, but banks kept the fees. Check your savings account agreement or call your bank to find out whether transfers out of savings count toward a limit and what the fee is if you exceed it.

PayPal transfers count as withdrawals in most cases. If you use your linked savings account to send money through PayPal twice a month, that is two of your allowed transfers. If your bank allows six transfers per month and you hit seven, you may see a fee of $5 to $10 on that seventh transfer—charged by your bank, not PayPal.

Some banks charge no fee at all, even for unlimited transfers. Others charge only if you exceed the limit. A few charge a small fee per transfer regardless. The only way to know is to ask your bank directly or read the account agreement they gave you when you opened the account.

Transfers from savings take the same time as transfers from checking

Once your savings account is linked and verified, PayPal treats it like any other bank account for transfer timing. When you send money to another PayPal user, it arrives when ready if both of you have PayPal balances. When you send to a bank account outside PayPal, the transfer takes one to three business days, depending on the receiving bank's processing speed.

Weekends and holidays do not count as business days. If you send money on a Friday afternoon, the receiving bank will not process it until Monday. If you send on a holiday, the clock starts the next business day.

Why you might choose a checking account instead

If your bank charges fees for savings transfers, linking a checking account avoids that cost entirely. Checking accounts have no federal withdrawal limit and most banks do not charge per-transfer fees. The trade-off is that checking accounts typically earn little or no interest, while savings accounts earn a small amount.

If you keep most of your money in savings and only move it to checking when you need it, you could link both accounts to PayPal. Use checking for frequent PayPal transfers and leave savings untouched except for occasional large transfers. That way you earn interest on most of your money and avoid transfer fees.

What happens if you remove a linked savings account

You can unlink a savings account from PayPal at any time. Go to Wallet, find the account, and select Remove. PayPal removes it when ready. Any pending transfers from that account will still go through—removing the account does not cancel transfers already in progress.

If you remove an account and then want to link it again later, you have to go through the verification process a second time. PayPal will send two new test deposits, and you will need to confirm the amounts again. This takes another one to two business days.

Frequently Asked Questions

Can I use a savings account for PayPal purchases at stores?

No. PayPal's in-store payment feature (QR codes, tap to pay) only works with a PayPal balance or a linked debit card or credit card. Linked bank accounts, whether checking or savings, only work for online transfers and payments to other PayPal users.

What if my savings account is at a credit union instead of a bank?

PayPal accepts savings accounts from credit unions the same way it accepts bank accounts. The verification process is identical. Some credit unions have different transfer limits or fees than banks, so check your credit union's account agreement for the rules on savings transfers.

Does linking a savings account affect my credit score?

No. PayPal does not perform a hard credit inquiry when you link a bank account. It only verifies that you own the account by depositing small amounts. Your credit score is not affected.

Can I link the same savings account to multiple PayPal accounts?

No. PayPal requires that each bank account be linked to only one PayPal account. If you try to link a savings account that is already linked to another PayPal account, PayPal will reject it.

What if the two verification deposits do not arrive?

Wait the full two business days before contacting your bank. Deposits sometimes take longer than expected. If two business days have passed and you still do not see them, contact PayPal support and provide your bank's routing number and account number. PayPal can resend the deposits or use an alternative verification method.