Yes, you can send money from PayPal to a bank account, but the method and timeline depend on which account you own
You can move money from your PayPal balance to a bank account you control. PayPal calls this a withdrawal or transfer, depending on whether you're moving money out of PayPal or between your own accounts. The process takes one to three business days for standard transfers, though PayPal offers a faster option that costs money.
You cannot send money directly from your PayPal account to someone else's bank account in a single step. If you want to pay another person's bank account, you have two paths: send them money through PayPal (and they withdraw it themselves), or use a different payment method like bank transfer or a service designed for that purpose.
Key Takeaways
- Standard transfers from PayPal to your own bank account take one to three business days and cost nothing.
- PayPal's instant transfer option moves money in minutes but charges a fee (typically 1% of the amount, with a minimum charge).
- You must link and confirm your bank account in PayPal before you can withdraw money to it.
- If you want to pay someone else's bank account directly, PayPal does not offer that service; you would need to send them money through PayPal or use a bank transfer instead.
How to link your bank account to PayPal
Before you can move money out, you need to add your bank account to PayPal. Go to your PayPal account settings, find the "Wallet" or "Banks and Cards" section (the exact name varies), and select "Link a Bank Account." PayPal will ask for your routing number, account number, and account type (checking or savings).
PayPal then sends two small deposits to your bank account—usually within one to two business days. You'll see these deposits in your bank statement with a code. Log back into PayPal, enter those two amounts, and your account is confirmed. Until you complete this step, PayPal will not let you withdraw money.
Standard transfer: one to three business days, no fee
Once your bank account is linked and confirmed, go to your PayPal wallet, select "Transfer Money," and choose "Transfer to Your Bank." Enter the amount you want to move. PayPal will show you the expected arrival date—usually one to three business days from the date you initiate the transfer.
The money lands in your bank account as a standard ACH transfer. Your bank may take an additional day to post it, so if PayPal says it will arrive by Thursday, check your bank account on Friday. There is no fee for this transfer.
Transfers initiated on weekends or holidays are queued and process on the next business day. If you transfer money on a Friday evening, it may not leave PayPal until Monday, meaning it could arrive Wednesday or Thursday.
Instant transfer: minutes, but with a fee
PayPal's Instant Transfer option moves money to your bank account in minutes instead of days. The fee is typically 1% of the amount you transfer, with a minimum charge (often $0.25) and a maximum per transaction. The exact fee varies by account type and changes over time, so check PayPal's current rates before you transfer.
To use instant transfer, select it from the transfer options in your wallet. Not all bank accounts may have access to—PayPal's system checks whether your bank supports the service. If your bank does not, you'll see a message saying instant transfer is not available for that account, and you'll be limited to the standard three-day option.
What happens if your bank account is not confirmed
If you have not completed the two-deposit verification step, PayPal will not let you withdraw money. You'll see a message asking you to confirm your bank account first. The verification process takes one to two business days for the deposits to arrive, then a few minutes for you to enter the amounts.
If you never receive the two deposits, or if you enter the amounts incorrectly three times, contact PayPal's support. They can verify your account manually, though this may take longer than the automatic process.
Sending money to someone else's bank account
PayPal does not have a feature to send money directly from your PayPal balance to another person's bank account. If you want to pay someone's bank account, you have these options:
- Send them money through PayPal. They receive it in their PayPal account and can withdraw it themselves to their bank account. This works if they have a PayPal account.
- Use your bank's bill pay or transfer service. Log into your bank's website or app and send money directly from your bank account to theirs. This is often faster and free.
- Use a peer-to-peer service like Venmo, Square Cash, or Zelle. These let you send money to another person's bank account directly, though some require the recipient to have an account with the same service.
- Wire the money. Your bank can send money to another bank account, though wire transfers usually cost $15 to $30 and are meant for larger amounts or urgent transfers.
Frequently Asked Questions
How long does it really take for money to show up in my bank account?
Standard transfers leave PayPal within one business day and arrive at your bank within one to three business days total. Your bank may take an extra day to post the money, so budget for up to four business days from the date you initiate the transfer. Instant transfers arrive in minutes, but only if your bank supports the service.
Can I transfer money from PayPal to a savings account instead of checking?
Yes. When you link your bank account, you choose whether it is checking or savings. PayPal transfers to either type the same way, with the same timeline and fees.
What if I transfer money but it never arrives?
Contact PayPal support with your transfer confirmation number. They can track the transfer and see whether it left PayPal and where it is in the banking system. If PayPal sent it but your bank did not receive it, your bank's support team can investigate on their end. This usually takes a few days to resolve.
Is there a limit to how much I can transfer at once?
PayPal sets limits on transfers, but the amount varies by account age, history, and verification status. Check your account settings under "Limits" to see your current transfer limit. If you need to move more than your limit allows, you can make multiple transfers on different days.
Do I pay taxes on money I transfer from PayPal to my bank account?
Transferring your own money from PayPal to your bank is not a taxable event. However, if the money in your PayPal account came from selling goods or services, that income is taxable. PayPal reports payments over a certain threshold to the IRS, so keep records of your transactions.