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 making purchases. However, PayPal treats savings accounts differently than checking accounts — you cannot receive money directly into a savings account through PayPal, and some features work differently or not at all. If you want full PayPal functionality, a checking account is the better choice, but a savings account works for basic sending and spending.
The main limitation is that incoming money lands in your PayPal balance first, not your savings account. You then have to move it manually, which adds an extra step. For people who mostly send money rather than receive it, this is rarely a problem.
Key Takeaways
- You can link a savings account to PayPal to send money and pay for things, but PayPal will not deposit money directly into a savings account.
- PayPal transfers from a savings account take one to three business days, while transfers from a checking account are often faster.
- If someone sends you money through PayPal, it lands in your PayPal balance, not your savings account, and you must transfer it out manually.
- A checking account gives you more PayPal features and faster transfers, so most people use checking if they have both options.
How to add a savings account to PayPal
Log into your PayPal account on a computer or the mobile app. Go to Wallet (on the app, tap the wallet icon at the bottom). Select Link a bank account. Choose Savings when PayPal asks what type of account it is. Enter your bank's routing number and your account number — you can find both on a check, or call your bank to ask.
PayPal will make two small deposits into your savings account, usually within two business days. Check your account statement, then return to PayPal and enter the amounts of those deposits to confirm you own the account. Once confirmed, your savings account is linked and ready to use.
What you can and cannot do with a linked savings account
You can use a linked savings account to send money to other people through PayPal, to pay for things online at stores that accept PayPal, and to fund a PayPal purchase in person if the store has a PayPal QR code. You can also use it to send money internationally, though fees explore.
You cannot receive money directly into a savings account through PayPal. When someone sends you money, it arrives in your PayPal balance first. From there, you can transfer it to your linked savings account, but that is a separate step that takes one to three business days. You also cannot use a savings account to fund a PayPal Credit line or to receive when ready transfers (PayPal's faster withdrawal option).
Why PayPal limits savings accounts
PayPal restricts savings accounts because they are designed for money you keep and grow, not for frequent deposits and withdrawals. Banks often charge fees if you move money in and out of a savings account too many times in a month — federal rules used to limit these to six per month, though that rule changed in 2020. PayPal avoids the friction by not depositing directly into savings accounts.
Checking accounts have no such limits, which is why PayPal works more smoothly with them. If you use PayPal regularly to receive money, a checking account will save you steps and time.
How transfers work when you use a savings account
When you send money from PayPal using your linked savings account, PayPal pulls the funds from your savings account and processes the payment. This takes one to three business days. The person receiving the money gets it in their account on a similar timeline, depending on their bank.
When someone sends you money through PayPal, it sits in your PayPal balance. You then have to manually transfer it to your savings account by going to Wallet, selecting Transfer Money, and choosing your savings account as the destination. That transfer also takes one to three business days. This two-step process is the main inconvenience of using a savings account with PayPal.
Checking account vs. savings account for PayPal
If you have both a checking and savings account, use your checking account with PayPal. Checking accounts have no withdrawal limits, transfers are often faster, and you can receive money directly into the account. Savings accounts work, but they add an extra step whenever someone sends you money.
If you only have a savings account, PayPal will still work for sending money and paying for things. You just need to remember that incoming money lands in PayPal first, and you must move it to your savings account yourself. For occasional use, this is not a major problem.
What to do if your bank is not recognized
Some smaller banks and credit unions do not appear in PayPal's list when you try to link an account. If your bank is not listed, you can still link it manually by entering your routing number and account number. The verification process is the same — PayPal deposits two small amounts, and you confirm them.
If your bank repeatedly rejects the link, call your bank's customer service and ask if they allow third-party connections to PayPal. A few banks block these for security reasons. If yours does, you may need to use a different bank account or contact PayPal support for other options.
Frequently Asked Questions
Can PayPal deposit money directly into my savings account?
No. When someone sends you money through PayPal, it goes to your PayPal balance first. You must then transfer it to your savings account manually, which takes one to three business days. A checking account receives deposits directly.
Will my bank charge me fees for PayPal transfers?
Most banks do not charge fees for transfers between your own accounts. However, some savings accounts charge a fee if you exceed a certain number of withdrawals per month — check your account agreement or call your bank to confirm.
How long does it take to link a savings account to PayPal?
The verification process usually takes two to three business days. PayPal deposits two small amounts into your account, and once you confirm those amounts in PayPal, the link is active and ready to use when ready.
Can I use a savings account to receive PayPal when ready transfers?
No. when ready transfers (PayPal's faster withdrawal option) only work with checking accounts. If you use a savings account, transfers take the standard one to three business days.
What if I want to switch from savings to checking with PayPal?
Go to your PayPal Wallet, find your savings account in the list, and select the option to remove or unlink it. Then add your checking account using the same process. You can have both linked at the same time if you want.