Yes, you can link a savings account to PayPal, but with limits on what you can do
PayPal will accept a savings account as your funding source for sending money and paying for purchases. However, the connection works differently than it does with a checking account. Your savings account can receive money from PayPal, but PayPal cannot pull funds directly from savings for most transactions — the system is built to pull from checking first, and you have to manually move money between your accounts if you want to fund a PayPal payment from savings.
The reason is practical: savings accounts are meant to stay relatively untouched, and banks often charge fees if you withdraw more than six times per month. PayPal's design assumes you'll use checking for frequent payments and keep savings separate. If you try to force a payment from savings, PayPal will either decline it or route it through your checking account instead.
Key Takeaways
- PayPal can receive deposits into a linked savings account, but cannot automatically pull money from savings to fund your payments.
- You can manually transfer money from savings to checking, then use checking to fund PayPal transactions without hitting savings withdrawal limits.
- Linking a savings account takes the same steps as linking checking: you provide the routing number and account number, and PayPal verifies two small deposits.
- If you have only a savings account and no checking account, you can still receive PayPal transfers, but sending money becomes more complicated.
How to link a savings account to PayPal
Start in your PayPal account settings. Go to Wallet, then Link a bank account. Select Savings account from the dropdown menu — this is the step most people miss because they assume PayPal only accepts checking.
Enter your bank's routing number and your account number. You can find both on a deposit slip, your bank's website, or by calling your bank directly. PayPal will then send two small deposits (usually between $0.01 and $0.99) to your savings account. This takes three to five business days. Once the deposits land, you return to PayPal, confirm the amounts, and the account is verified.
After verification, your savings account appears in your Wallet as an available funding source. However, it will not be your default. PayPal prioritizes checking accounts for automatic payments, so you may need to manually select your savings account each time you want to use it — and even then, the transaction may fail or reroute to checking if PayPal detects a problem.
What you can and cannot do with a linked savings account
You can receive money into your savings account. If someone sends you a PayPal transfer and you have a savings account linked, you can choose to deposit it there instead of into checking. This is useful if you want the money to stay in savings rather than sitting in checking where you might spend it.
You cannot reliably send money from savings. PayPal's system is not designed to pull from savings for outgoing payments. If you try to send money and your checking account is empty, PayPal will either decline the transaction or ask you to add a backup funding source. Some users report that PayPal will pull from savings as a last resort, but this is not may provide and may trigger overdraft fees if your bank charges them.
You cannot use savings for PayPal Credit or when ready transfers. These features require a checking account. PayPal Credit is a line of credit that pulls from checking, and when ready transfers to your bank (which cost $0.25) only work with checking accounts.
Why checking accounts work better with PayPal
PayPal treats checking and savings differently because of how banks regulate them. A checking account is designed for frequent transactions, and banks expect multiple withdrawals per month. A savings account is designed to discourage frequent withdrawals — federal law once limited you to six per month, and many banks still charge fees if you exceed that limit.
If PayPal automatically pulled from your savings every time you made a payment, you could hit that withdrawal limit and face fees from your bank. To avoid this, PayPal's default behavior is to use checking. Your savings account sits in the background as a place to receive money, not send it.
If you have only a savings account and no checking account, you can still use PayPal to receive transfers, but you will need to manually move money to a checking account (at your bank or through a service like Chime or Cash App) before you can reliably send payments.
Linking multiple accounts and changing your default
You can link more than one savings account to PayPal, and you can also link both a checking and a savings account at the same time. When you have multiple accounts, PayPal displays them all in your Wallet, and you can choose which one to use for each transaction.
To change which account PayPal uses by default, go to Wallet, then Settings, then Automatic payments. Select the account you want to use for recurring charges. For one-time payments, you can override this choice at checkout by selecting a different account from the dropdown.
Keep in mind that even if you set a savings account as your default, PayPal may still route the payment to checking if it detects a problem. This is a safety measure to prevent declined transactions, but it also means you cannot fully rely on savings as your primary funding source.
What happens if your savings account is overdrawn or closed
If your savings account becomes overdrawn, PayPal will not pull from it for new transactions. The account will remain linked, but PayPal will treat it as unavailable and route payments to your checking account or ask you to add another funding source.
If you close your savings account while it is still linked to PayPal, the link does not automatically disappear. You should manually remove it from your Wallet to avoid confusion. Go to Wallet, find the account, and select Remove. If you do not remove it and someone tries to send you money to that account, the transfer will fail.
Fees and limits for savings account transfers
PayPal does not charge a fee to link a savings account or to receive money into one. However, your bank may charge fees if you exceed the withdrawal limit for savings accounts. This is a bank rule, not a PayPal rule, so the fee amount and the withdrawal limit depend on your specific bank.
There is no PayPal-imposed limit on how much money you can receive into a savings account. However, PayPal does limit how much you can send per day and per month, and these limits depend on your account age and history. These limits explore regardless of which account you are sending from.
Frequently Asked Questions
Can I use a savings account for PayPal Credit?
No. PayPal Credit requires a checking account. If you try to set up PayPal Credit with only a savings account linked, PayPal will ask you to add a checking account before you can proceed.
What if my bank charges fees for savings withdrawals?
Those fees are between you and your bank, not PayPal. If PayPal pulls from your savings and your bank charges a withdrawal fee, you pay the fee to your bank. To avoid this, keep your checking account funded and let PayPal pull from checking instead.
Can I receive when ready transfers from PayPal into a savings account?
No. when ready transfers (which cost $0.25) only work with checking accounts. Transfers to a savings account take one to three business days and are free.
What if I have a savings account but no checking account?
You can receive PayPal transfers into your savings account, but you cannot send money reliably. To send money, you would need to open a checking account or use a mobile banking app that offers a checking account linked to your savings.
Does PayPal verify a savings account the same way as a checking account?
Yes. PayPal sends two small deposits to verify ownership, regardless of account type. The verification process takes three to five business days for both checking and savings accounts.