Why you need a bank account linked to PayPal
PayPal holds money in a digital wallet, but to move that money into your actual bank account — or to fund PayPal payments from your bank — you need to connect the two. Linking your bank account is how PayPal verifies you are who you say you are, and it is the safest way to transfer money in and out of your PayPal balance.
You can send money to PayPal users without a linked bank account, but you cannot withdraw your balance or use PayPal to pay for things online without one. If you only plan to receive money from others, you still need a bank account on file so PayPal knows where to send it.
Key Takeaways
- You will need your bank's routing number and your account number, both found on a check or in your bank's online portal.
- PayPal will deposit two small test amounts into your bank account, which you must confirm in the PayPal app or website to complete the link.
- The entire process takes about five to seven business days from the time you enter your account information until the test deposits arrive.
- Once linked, you can transfer money from PayPal to your bank account, which usually takes one to three business days to show up.
What you need before you start
Gather these items before you open PayPal: your bank account number, your bank's routing number, and the name on your bank account (which should match the name on your PayPal account). If you do not have a check, you can find both numbers by logging into your bank's website or app — most banks display them under account details or account information.
Your bank account must be in the United States and in your own name. PayPal does not accept joint accounts, accounts held in a business name, or accounts at banks outside the US. If your account is joint, you will need to use the primary account holder's name.
Steps to add your bank account in PayPal
Step 1: Log into PayPal. Go to PayPal.com or open the PayPal app on your phone. Sign in with your email and password.
Step 2: Go to your wallet. On the website, click "Wallet" at the top. On the app, tap the wallet icon (usually at the bottom of the screen). You will see your PayPal balance and any linked cards or accounts.
Step 3: Select "Link a bank account." Look for a button or link that says "Link a bank account" or "Add bank account." Click or tap it.
Step 4: Enter your bank information. You will be asked for your bank's name, your account type (checking or savings), your routing number, and your account number. Enter each one carefully — a mistake here will delay the process.
Step 5: Confirm the account name. PayPal will ask you to confirm the name on the bank account. This must match the name on your PayPal account exactly. If it does not, update your PayPal name first, then try again.
Step 6: Wait for test deposits. PayPal will send two small deposits (usually less than one dollar each) to your bank account. This takes five to seven business days. You will receive an email when they arrive.
Step 7: Confirm the amounts. Once the deposits show up in your bank account, log back into PayPal. Go to your wallet, find the bank account, and enter the two amounts PayPal sent. This confirms you own the account.
What happens if the test deposits do not arrive
If five to seven business days have passed and you have not seen the deposits, check your bank account carefully — they may be labeled as "PayPal" or "PAYPAL" in your transaction history. If they are not there, log into PayPal and check the status of your bank account link. PayPal will tell you if there was an error.
The most common reason deposits fail is a wrong routing number or account number. If PayPal shows an error, delete the account and start over with the correct information. You can find your routing number on your bank's website or by calling the bank directly — do not guess.
How to transfer money from PayPal to your bank account
Once your bank account is confirmed, you can move money out of PayPal whenever you want. Go to your wallet, find your linked bank account, and select "Transfer to bank." Enter the amount you want to move. PayPal will show you the fee (if any) and the expected arrival date.
Transfers usually take one to three business days. Some PayPal accounts offer when ready transfers for a small fee, but standard transfers are free. The money will appear in your bank account as a deposit labeled "PayPal" or "PAYPAL TRANSFER."
Removing or changing your bank account
If you need to remove your bank account from PayPal, go to your wallet, find the account, and select "Remove." You can add a different bank account at any time by following the same steps above. PayPal will run the test deposit process again.
If you change banks, do not delete your old account until you have confirmed the new one. This prevents a gap where you cannot transfer money out of PayPal.
Security and what PayPal can see
PayPal does not see your full bank account balance or your transaction history — only that the account exists and is in your name. The test deposits are PayPal's way of confirming you own the account and have access to it. Once confirmed, PayPal can only move money in or out when you tell it to.
Your bank account information is encrypted, meaning it is scrambled so that only PayPal can read it. If you are worried about security, you can remove the bank account from PayPal at any time, and PayPal will no longer have access to it.
Frequently Asked Questions
Can I use a savings account instead of checking?
Yes. When you enter your bank information, you will be asked whether the account is checking or savings. Both work the same way — PayPal will send test deposits and you will confirm the amounts.
What if my name on PayPal does not match my bank account?
Update your PayPal name first. Go to your account settings, find "Personal information," and change your name to match your bank account exactly. Then try linking your bank account again.
Do I have to pay a fee to link my bank account?
No. Linking a bank account is free. PayPal may charge a small fee when you transfer money out to your bank, but the link itself costs nothing.
Can I link someone else's bank account to my PayPal?
No. The bank account must be in your name and you must own it. PayPal confirms this by sending test deposits that only you can see and confirm.
How long does it take to use my bank account after I link it?
Five to seven business days for the test deposits to arrive, then a few minutes to confirm them. After that, you can transfer money when ready, though it takes one to three business days for the money to show up in your bank.