How to transfer money from PayPal to your bank account
You can move money from PayPal to your bank account in two ways: a standard transfer that takes one to two business days, or an when ready transfer that costs a small fee and arrives within minutes. Both require you to link your bank account to PayPal first, which means giving PayPal permission to move money in and out of that account.
The standard transfer is free and works for most people. The when ready transfer costs between 1% and 2% of the amount you send, depending on your account history and the size of the transfer. You choose which method each time you transfer, so you can use the free option most of the time and pay for speed only when you need it.
Key Takeaways
- You must link your bank account to PayPal before you can transfer money, which involves providing your account and routing numbers.
- Standard transfers are free and take one to two business days; when ready transfers cost 1% to 2% and arrive within minutes.
- You can transfer money from the PayPal app or website by going to your wallet, selecting your bank account, and entering the amount.
- PayPal holds new accounts for 21 days before allowing transfers, and some banks take longer to confirm the link.
- If a transfer fails, check that your bank account is confirmed, your balance is correct, and your account is in good standing.
Linking your bank account to PayPal
Before you can transfer money, you need to connect a bank account to your PayPal account. Go to the Settings menu (the gear icon), then select "Wallet" or "Banks and Cards." Choose "Link a Bank Account" and enter your bank's name, your account number, and your routing number. Your routing number is a nine-digit code that identifies your specific bank; you can find it on a check, in your bank's app, or by calling your bank.
PayPal will then make two small test deposits to your account — usually between $0.01 and $0.99 each. These deposits appear in your bank account within a few days. Once they arrive, go back to PayPal and confirm the amounts. This process proves that you own the bank account and prevents someone else from linking your account without permission.
New PayPal accounts cannot transfer money for 21 days after opening, even if the bank account is linked. This is a security measure. If your account is older than 21 days and your bank account is confirmed, you are ready to transfer.
Making a standard transfer (free, one to two days)
Open PayPal on the app or website and go to your Wallet. Select "Transfer Money" or look for a "Transfer" button. Choose "Transfer to Your Bank." Select the bank account you want to send money to (you may have more than one linked), enter the amount, and confirm.
The money will leave your PayPal balance when ready, but it takes one to two business days to appear in your bank account. Business days do not include weekends or federal holidays, so a transfer you make on Friday afternoon may not arrive until Tuesday. If you transfer on a holiday, the clock starts the next business day.
You can check the status of a transfer by going to your Activity or Transaction History. PayPal will show you whether it is pending, in progress, or complete. Once it is complete, the money is in your bank account and PayPal has no further control over it.
Making an when ready transfer (costs 1% to 2%, arrives in minutes)
If you need the money faster, you can use PayPal's when ready transfer option. The process is the same as a standard transfer, but when you choose your bank account, you will see an option for "when ready Transfer" with the fee displayed. The fee is a percentage of the amount you are sending — usually between 1% and 2%. PayPal calculates the exact fee before you confirm, so you know the cost before you commit.
Once you confirm an when ready transfer, the money leaves your PayPal account and arrives in your bank account within minutes, usually before you finish reading the confirmation screen. The fee is deducted from the amount you transfer, so if you send $100 with a 1% fee, your bank account receives $99.
when ready transfers work 24 hours a day, seven days a week, including weekends and holidays. This makes them useful if you need money outside of normal banking hours, though the speed depends partly on your bank — some banks process incoming transfers faster than others.
What to do if your transfer fails or is delayed
If a transfer does not go through, PayPal will send you a notification explaining why. The most common reasons are: your bank account is not confirmed, your PayPal balance is too low, your account is limited or restricted, or your bank rejected the transfer.
Check that your bank account is confirmed by going to Settings, then Wallet, and looking for a checkmark next to your bank's name. If it does not have a checkmark, the confirmation process is not complete — go back and confirm the test deposits PayPal sent.
If your account is limited or restricted, PayPal will tell you why in a message in your account. You may need to verify your identity, update your information, or resolve a dispute before you can transfer again. If your bank rejected the transfer, contact your bank to ask why — common reasons include a closed account, fraud alerts, or a mismatch between the name on your PayPal account and the name on your bank account.
Fees and limits on transfers
Standard transfers are always free. when ready transfers cost 1% to 2% of the amount you send. PayPal does not charge a fee to link your bank account or to receive money into PayPal, only to move money out.
PayPal does not publish a single transfer limit that applies to everyone. Limits depend on your account age, history, and activity. New accounts have lower limits than established ones. If you try to transfer more than your limit allows, PayPal will tell you the maximum amount you can send. You can transfer again once the first transfer completes, so you can move large amounts in multiple transfers if needed.
Your bank may also have limits on how much money can be deposited in a single day or how many deposits you can receive. These limits vary by bank and account type. If you are transferring a large amount and it fails, contact your bank to ask whether they have a daily deposit limit.
Frequently Asked Questions
How long does it take to link a bank account?
The test deposits usually arrive within three to five business days. Once you confirm them in PayPal, the account is linked when ready. However, new PayPal accounts cannot transfer money for 21 days after opening, even if the bank account is linked.
Can I transfer money to someone else's bank account?
No. PayPal transfers only go to a bank account that is linked to your own PayPal account. To send money to someone else, use PayPal's "Send Money" feature, which transfers money from your PayPal balance to their PayPal account or email address, not to their bank account.
What happens if I transfer money by mistake?
Once a transfer is complete, it cannot be reversed through PayPal. Contact your bank when ready and ask them to reverse the deposit. Your bank can sometimes recall the money if the receiving bank has not processed it yet, but this is not may provide. If the transfer was to the wrong account, you may need to contact that account's bank as well.
Do I need to pay taxes on money I transfer from PayPal?
Transferring money from PayPal to your bank account is not a taxable event — you are moving money you already earned or received. However, the money you earned through PayPal (from sales, payments, or other income) may be taxable depending on the amount and your location. PayPal sends tax forms if you earn above a certain threshold.
Why is my transfer taking longer than expected?
Standard transfers usually take one to two business days, but delays happen if the transfer is processed on a weekend or holiday, if your bank is slow to process deposits, or if PayPal is experiencing technical issues. Check your transaction history in PayPal to see the status. If it shows "complete" but the money has not arrived in your bank account after three business days, contact your bank.