Yes, you can link a savings account to PayPal, but PayPal works better with checking accounts
You can connect a savings account to PayPal, and PayPal will let you send money from it or receive money into it. However, PayPal is designed to work smoothly with a checking account, not a savings account. If you use a savings account as your main PayPal account, you may run into delays, extra steps, or unexpected holds on your money.
The reason is straightforward: PayPal treats a savings account like a backup funding source, not a primary one. When you try to send money from a savings account, PayPal may hold the transaction while it verifies the account. When you receive money, PayPal may deposit it to a checking account first, then make you transfer it to savings yourself. If you only have a savings account and no checking account, PayPal will still work — it just takes longer and requires more of your attention.
Key Takeaways
- You can link a savings account to PayPal by providing your bank routing number and account number, the same way you would link a checking account.
- PayPal may place a temporary hold on transfers from a savings account while it confirms the account is real and belongs to you.
- Money you receive through PayPal may land in a checking account first, and you will need to move it to savings yourself if that is where you want it.
- If you plan to use PayPal regularly, a checking account will give you faster, more predictable transfers than a savings account.
How to add a savings account to PayPal
Log into your PayPal account on a computer or the PayPal app. Go to Wallet (on the app) or Account Settings (on the website), then select Add a bank account. PayPal will ask for your bank's name, your routing number, and your account number. You can find the routing number on the bottom left of any check, or by calling your bank. The account number is on the bottom right of a check, or in your online banking portal.
After you enter this information, PayPal will make two small deposits to your savings account — usually between $0.01 and $0.99 each. This is PayPal's way of confirming the account is real and that you own it. You will see these deposits in your savings account within one to three business days. Once they appear, go back to PayPal, find the account you just added, and enter the exact amounts of those two deposits. PayPal will then confirm the account is linked.
Why PayPal prefers checking accounts
PayPal's system was built around checking accounts, where money moves quickly and frequently. A checking account is meant for regular spending and transfers. A savings account is meant to hold money and earn interest, so banks protect savings accounts more carefully. When PayPal sees a transfer request from a savings account, the bank may flag it as unusual and ask PayPal to wait while it double-checks.
This protection is good for you — it prevents fraud — but it slows down your PayPal transactions. A transfer from a checking account usually clears in one to two business days. A transfer from a savings account may take three to five business days, or PayPal may hold it for review. If you receive money into PayPal and your only linked account is a savings account, PayPal may deposit the money to a checking account instead, forcing you to move it manually.
What happens when you send money from a savings account
When you send money from PayPal using a linked savings account, PayPal will process the request but may place a hold on the transaction. You will see a message saying the transfer is pending or under review. During this time, the money stays in your PayPal account — it has not left yet. The hold usually lasts 24 to 72 hours, though it can be longer if PayPal's system flags the transaction as high-risk.
Once the hold lifts, PayPal sends the money to the recipient, and the amount is deducted from your savings account. You will see the deduction in your bank account within one to three business days. If you need the money to move faster, you can link a checking account instead and use that as your primary funding source.
What happens when you receive money into a savings account
When someone sends you money through PayPal and your only linked account is a savings account, PayPal may deposit the money to a checking account first. This happens because PayPal's default is to send received funds to a checking account for quick access. If you do not have a checking account linked, PayPal will hold the money in your PayPal balance until you add one or manually request a transfer to your savings account.
To move money from your PayPal balance to your savings account, go to Wallet, select Transfer Money, and choose Transfer to your bank. Select your savings account from the list and enter the amount. The transfer will take one to three business days, though PayPal may place a hold if the amount is large or the account is new.
Setting up a checking account to use with PayPal
If you want PayPal to work smoothly, the simplest step is to open a checking account at your bank. Many banks offer free checking accounts with no minimum balance, especially if you also have a savings account there. Once you have a checking account, link it to PayPal the same way you would link a savings account: go to Wallet or Account Settings, select Add a bank account, and enter your routing and account numbers.
You do not have to use the checking account for everyday spending. You can keep most of your money in savings and use the checking account only as a bridge between PayPal and your savings. When you receive money through PayPal, it lands in the checking account. You can then transfer it to savings whenever you want. When you need to send money through PayPal, you move it from savings to checking first, then send it through PayPal. This takes an extra step, but it avoids the delays and holds that come with linking a savings account directly.
Frequently Asked Questions
Will PayPal charge me a fee to link my savings account?
No. PayPal does not charge a fee to link a bank account, whether it is a checking or savings account. However, your bank may charge a fee if you make too many transfers out of your savings account in a month — federal rules allow up to six per month before banks can charge. Check your bank's savings account rules before linking it to PayPal.
Can I use my savings account as my primary PayPal funding source?
Yes, but PayPal will treat it as a secondary source and may delay transactions. If you want to use a savings account as your main source, you can, but expect holds and slower transfers. A checking account will always be faster.
What if I only have a savings account and no checking account?
You can still use PayPal. Link your savings account, and PayPal will work — it will just be slower. Transfers may take three to five business days instead of one to two. If you use PayPal often, opening a free checking account at your bank will save you time and frustration.
How long does it take to confirm a savings account with PayPal?
PayPal deposits two small amounts to your account within one to three business days. Once you see them and enter the amounts back into PayPal, the account is confirmed when ready. The whole process usually takes three to five business days from start to finish.
Can I remove my savings account from PayPal later?
Yes. Go to Wallet or Account Settings, find the savings account, and select Remove. PayPal will unlink it right away. You can add it back anytime by repeating the linking process.