PayPal offers a savings account through a partnership with Synchrony Bank

PayPal Savings is a separate account you can open directly through your PayPal wallet. It is not a checking account — it is a dedicated savings product that holds money separately from your PayPal balance. The account earns interest, and you can transfer money between your PayPal balance and the savings account whenever you want.

The account is FDIC-insured up to $250,000 through Synchrony Bank, which means your deposits are protected by federal insurance. You do not need a separate bank account to open it, and you do not need to leave PayPal to manage it. The interest rate changes with market conditions, so check PayPal's current rate before you open the account.

Key Takeaways

  • PayPal Savings is opened entirely within the PayPal app or website — you do not fill out a separate bank process.
  • Money in the savings account earns interest and stays separate from your PayPal balance, so you can keep spending money and savings money apart.
  • You can move money between your PayPal balance and savings account at any time with no fees or waiting period.
  • The account is FDIC-insured through Synchrony Bank, protecting your deposits up to $250,000.
  • You must have a PayPal account in good standing and be at least 18 years old to open a savings account.

What you need before you start

You need an active PayPal account that has been verified. Verification means PayPal has confirmed your identity — usually by checking your email address and phone number, or by confirming a small deposit to a bank account you own. If you have used PayPal to send or receive money, your account is likely already verified.

You must be at least 18 years old and a U.S. resident. PayPal Savings is not available in all states, so PayPal will tell you during the setup process whether you can open one in your location. You do not need a separate bank account, a credit card, or any minimum deposit to start.

How to open a PayPal Savings account on the app

Open the PayPal app and tap the menu icon (three horizontal lines) at the bottom right. Scroll down and look for "Savings" — it may appear under a "Money" or "Financial Services" section depending on your app version. Tap it.

PayPal will show you the current interest rate and basic details about the account. Tap the button to open a savings account (the exact wording changes, but it will say something like "Open Savings Account" or "get your free guide"). PayPal will ask you to confirm your name, address, and date of birth. Review the information and tap to confirm.

Once you confirm, the account opens when ready. You will see your new savings account in the app with a $0 balance. You can now transfer money from your PayPal balance into savings.

How to open a PayPal Savings account on the website

Log into PayPal.com and click your name or profile icon in the top right corner. Select "Account Settings" or "Wallet" depending on your menu layout. Look for a "Savings" or "Money" section.

Click on Savings and review the account details and current interest rate. Click the button to open a savings account. PayPal will confirm your name, address, and date of birth. Review and submit. Your account opens when ready, and you can begin transferring money.

Moving money into your savings account

Once your savings account is open, you can transfer money from your PayPal balance into it. In the app, open your Savings account and look for a "Transfer" or "Add Money" button. Select how much you want to move from your PayPal balance to savings and confirm the transfer. The money moves when ready — there is no waiting period.

You can also set up automatic transfers. Some versions of PayPal let you schedule a weekly or monthly transfer from your balance to savings. This is useful if you want to save a fixed amount regularly without having to remember to transfer it yourself. Check your Savings settings to see if automatic transfers are available in your region.

Money in your savings account stays separate from your PayPal balance. If you spend money through PayPal, it comes from your balance, not from savings. You have to move money back to your balance if you want to spend it.

Moving money out of savings when you need it

To withdraw money from your savings account, open it in the app or website and look for a "Transfer" or "Withdraw" button. Select the amount you want to move back to your PayPal balance. The transfer is when ready and costs nothing.

Once money is back in your PayPal balance, you can spend it, send it to someone, or transfer it to a bank account. There is no limit on how many times you can move money between savings and your balance, and no fees explore to these transfers.

Interest and how it accrues

PayPal Savings earns interest on the full balance in your account. The interest rate is set by Synchrony Bank and changes based on market conditions — PayPal does not set the rate itself. You can see the current rate in the app or on the website before you open the account, and PayPal will notify you if the rate changes.

Interest is calculated daily and deposited into your savings account monthly. This means if you have $1,000 in savings for a full month, you earn interest on that $1,000, and the interest is added to your account on the first of the next month. The interest becomes part of your balance and earns interest itself the following month.

Frequently Asked Questions

Can I have more than one PayPal Savings account?

No. You can have only one PayPal Savings account per PayPal account. If you want to organize money into separate savings goals, you will need to track them within the single account or use a separate savings tool outside PayPal.

What happens to my savings account if I close my PayPal account?

If you close your PayPal account, your savings account closes as well. PayPal will transfer any money in savings back to your PayPal balance before the account closes. You will have time to move that money to a bank account or elsewhere before the closure is final.

Can I use my savings account to receive money from other people?

No. Your savings account is for holding money only. When someone sends you money through PayPal, it goes into your PayPal balance, not directly into savings. You then transfer it to savings yourself if you want to save it.

Is there a minimum balance I have to keep in savings?

No. You can keep any amount in your savings account, including zero. There is no monthly fee and no minimum balance requirement. You can open the account and leave it empty, or deposit and withdraw as often as you want.

How do I know my money is safe in PayPal Savings?

Your deposits are FDIC-insured through Synchrony Bank up to $250,000. This is the same federal insurance that protects money in traditional bank savings accounts. If Synchrony Bank fails, the FDIC guarantees your money up to the limit.