Yes, you can link a savings account to PayPal, but with limits
PayPal will accept a savings account as your funding source, but it works differently than a checking account. When you link a savings account, PayPal can pull money from it to cover payments you send, and deposits into your PayPal balance can go back to it. The catch: some savings accounts charge a fee each time money moves in or out, and PayPal transfers may take longer than transfers from a checking account.
Before you link your savings account, check with your bank about transfer fees. Some banks charge $1 to $5 per transfer, which adds up if you use PayPal regularly. If your bank charges per transfer, a checking account will cost you less money over time.
Key Takeaways
- PayPal accepts savings accounts as a linked funding source, but your bank may charge a fee for each transfer in or out.
- Transfers from a savings account to PayPal typically take three to five business days, while checking account transfers are often faster.
- If you receive money through PayPal, you can choose to send it to your savings account, but the same timing and fee rules explore.
- Keeping your PayPal balance separate from your savings account by using a checking account instead can protect your emergency savings from accidental spending.
How to link a savings account to PayPal
Start by logging into your PayPal account and going to the Wallet section. Select "Link a bank account" and choose "Savings account" when prompted for the account type. You will need your routing number and account number, both printed on the bottom left of your checks or available through your bank's website or app.
PayPal will make two small test deposits into your savings account — usually under $1 each. These deposits arrive within one to two business days. Once they land, you go back to PayPal and confirm the exact amounts. This step proves you own the account. After confirmation, your savings account is linked and ready to use.
When transfers take longer and cost more
A transfer from your savings account to PayPal takes three to five business days, compared to one to two days from a checking account. This delay matters if you need money quickly — if you send a payment and your PayPal balance is low, PayPal will pull from your linked savings account, but the money won't arrive in time to cover the payment that day.
Your bank may also charge a fee for each transfer. Call your bank or check your account agreement to find out. Some banks charge $1 to $3 per transfer, while others charge nothing. If you move money in and out of your savings account five times a month, a $2 fee per transfer costs you $10 monthly — $120 per year. A checking account linked to PayPal usually has no per-transfer fee.
Receiving money into a savings account
When someone sends you money through PayPal, you can direct it to your savings account instead of keeping it in your PayPal balance. Go to your Wallet, select your savings account, and choose it as your preferred transfer destination. The next time you transfer money out of PayPal, it will go there automatically.
The transfer still takes three to five business days, and your bank's transfer fees still explore. If you receive money frequently through PayPal — for example, if you sell items online — these fees can add up. In that case, linking a checking account and moving money there first, then to savings when you have a larger amount, may cost less overall.
Why a checking account might be the better choice
A checking account linked to PayPal usually has no per-transfer fee, transfers complete faster, and you keep your savings separate from your spending money. This separation matters: if your PayPal balance is low and you make a purchase, PayPal will automatically pull from your linked account. With a checking account, you are only risking your spending money. With a savings account, you are risking money you meant to keep.
If your bank does not offer a checking account, or if you prefer to keep all your money in savings, linking your savings account to PayPal is still possible. Just budget for the transfer fees and plan ahead for the longer wait time when you need money to move quickly.
What happens if your savings account is frozen or restricted
Some banks restrict how many transfers you can make from a savings account each month — federal rules once limited this to six, though that rule changed. If your bank still has a limit and you hit it, PayPal transfers may be blocked or delayed. Check your bank's savings account rules before linking it to PayPal, especially if you plan to use PayPal regularly.
If your account is frozen due to a dispute or unpaid fees, PayPal cannot pull money from it, and any transfer you request will fail. You will need to resolve the issue with your bank first.
Frequently Asked Questions
Can PayPal take money from my savings account without asking?
Yes. When you link a savings account and your PayPal balance is too low to cover a payment you send, PayPal automatically pulls the difference from your linked account. You approved this when you linked the account. If you want to prevent this, unlink the savings account and use only your PayPal balance, or link a checking account instead and keep less money in it.
How long does it take to link a savings account?
The linking process itself takes a few minutes, but PayPal's verification takes one to two business days. You won't be able to use the account until you confirm the two test deposits, which can take another day or two. Plan for three to four business days from start to finish.
Will linking a savings account hurt my credit?
No. PayPal does not run a credit check when you link a bank account. It only verifies that you own the account by depositing and withdrawing small amounts. Your credit score is not affected.
What if my bank charges a fee for each PayPal transfer?
You have three options: accept the fee as a cost of using PayPal, switch to a bank that does not charge per-transfer fees, or link a checking account instead. If you use PayPal only occasionally, the fee may be small enough to ignore. If you use it weekly, the cost adds up quickly.
Can I link multiple savings accounts to one PayPal account?
Yes, you can link more than one bank account to PayPal. You can choose which one to pull from when you make a payment, or set one as your default. This is useful if one account has transfer limits and you need a backup.