How to transfer money from PayPal to your bank account

You can move money from PayPal to a linked bank account in two ways: a standard transfer that takes one to two business days, or an when ready transfer that arrives within 30 minutes but costs a small fee. Both routes require you to have already added and confirmed your bank account in PayPal's settings. The standard transfer is free; when ready transfers cost between 1% and 2% of the amount you're moving, with a minimum fee of around 25 cents.

The process itself takes less than a minute once your bank account is set up. You'll go to your PayPal wallet, select the transfer option, choose your bank account, enter the amount, and confirm. The money then moves through the ACH network (the system banks use to talk to each other) or PayPal's own when ready payment rails, depending on which speed you pick.

Key Takeaways

  • Standard transfers to your bank account are free and take one to two business days; when ready transfers cost 1% to 2% and arrive within 30 minutes.
  • Your bank account must be added to PayPal and confirmed with two small deposits before you can transfer money out.
  • Transfers from PayPal to a bank account are different from transfers between PayPal users, which happen when ready and for free.
  • If a transfer fails or is delayed, check that your bank account information is correct and that you have no holds on your PayPal account.

Adding and confirming your bank account in PayPal

Before you can move money out, PayPal needs to know your bank account exists and that you own it. Go to your PayPal account settings, find the "Wallet" or "Banks and Cards" section (the exact name varies by whether you're on mobile or desktop), and select "Link a Bank Account." Enter your routing number and account number—both appear on the bottom left of a paper check, or you can find them in your bank's app or by calling the bank.

PayPal will then send two small deposits (usually under $1 each) to that account. This takes two to three business days. Once they arrive, go back to PayPal, confirm the amounts of those deposits, and your account is verified. Only then can you transfer money out. This verification step exists to prevent fraud and to prove you control the account.

Standard transfers: free but slower

A standard transfer moves your money through the ACH network, the same system your employer uses to deposit your paycheck. PayPal initiates the transfer when ready, but the money doesn't arrive at your bank until one to two business days later. Weekends and bank holidays add time—a transfer you start on Friday evening won't arrive until Tuesday or Wednesday.

Standard transfers are free, which makes them the right choice if you're not in a hurry. There's no fee, no percentage taken, no minimum. The trade-off is that you have to wait. If you need the money today or tomorrow, you'll need the when ready option instead.

when ready transfers: faster but with a cost

when ready transfers use PayPal's own payment network to move money directly to your bank account within 30 minutes, often much faster. The cost is 1% of the amount transferred, with a minimum fee of around 25 cents and a maximum of $25 per transfer. So moving $100 costs $1; moving $1,000 costs $10. A few banks don't support when ready transfers yet, in which case PayPal will tell you when you try and offer the standard option instead.

when ready transfers work on weekends and holidays, which standard transfers do not. They're useful when you need cash quickly—to pay an unexpected bill, cover an emergency, or move money before a important date. But the fee adds up if you transfer small amounts frequently, so weigh whether the speed is worth the cost in your situation.

What to do if your transfer is delayed or fails

A standard transfer that doesn't arrive within two business days usually means one of three things: your bank account information in PayPal is wrong, your bank is holding the deposit for review, or there's a temporary problem with the ACH network. Start by checking that your routing and account numbers are correct in your PayPal wallet. A single digit wrong will cause the transfer to fail or go to the wrong account.

If the numbers are right, contact your bank and ask if they're holding a deposit from PayPal. Banks sometimes flag transfers from digital wallets as unusual activity, especially if it's your first time. Your bank can release the hold once you confirm it's legitimate. If neither of those is the issue, contact PayPal's support team with the date and amount of the transfer—they can see where it got stuck and reissue it if needed.

when ready transfers that fail usually do so because your bank doesn't support the service or because PayPal detected a security concern with your account. PayPal will show you the reason when the transfer fails and offer to send it as a standard transfer instead. If your account is flagged, PayPal may ask you to verify your identity before allowing transfers again.

Transfers between PayPal users versus transfers to your bank

Don't confuse moving money to your own bank account with sending money to another person's PayPal account. Sending money to another PayPal user is when ready and free (if you're both in the same country and you send it as a "friends and family" transfer). Moving money from your PayPal balance to your own bank account is different—it goes through the banking system, takes time, and may have a fee depending on which speed you choose.

If you're trying to send money to someone else, you don't need to move it to your bank first. You can send it directly from your PayPal balance to their PayPal account or to their bank account (if PayPal offers that service in your country). Check the "Send Money" section of PayPal to see your options.

Frequently Asked Questions

Can I transfer money from PayPal to a bank account that isn't in my name?

No. PayPal requires that the bank account you link be registered to the same person whose name is on the PayPal account. This is a fraud prevention rule. If you need to move money to someone else's account, send it to their PayPal account instead, or ask them to add their bank account to their own PayPal wallet and send it that way.

What's the maximum amount I can transfer at once?

PayPal's limits vary by account age, history, and country. New accounts may have lower limits than established ones. Check your PayPal wallet when you go to transfer—it will show you the maximum for that transaction. If you hit a limit, you can transfer again the next day or contact PayPal support to request a higher limit.

Do I pay taxes on money I transfer from PayPal to my bank?

Transferring your own money from PayPal to your bank is not a taxable event. However, the money in your PayPal account may have come from income that is taxable—like payments for goods or services you sold. You owe taxes on that income regardless of whether it stays in PayPal or moves to your bank. Keep records of what the money came from.

Why does PayPal need to verify my bank account with two deposits?

The two small deposits prove you own the account and can access it. This prevents someone from linking a bank account that isn't theirs and stealing transfers. Once you confirm the deposit amounts, PayPal knows the account is real and under your control.

Can I transfer money from PayPal to a savings account, or does it have to be checking?

You can link either a checking or savings account to PayPal. The transfer process is the same. Some people prefer savings accounts for security; others use checking because they access it more often. The routing and account numbers work the same way for both.