Yes, you can transfer from PayPal to your bank account in one to three business days
PayPal lets you move money from your PayPal balance to a linked bank account. The transfer is not instant—it takes one to three business days depending on your bank and whether you pay a fee. You can transfer as much as you want, as long as your PayPal balance covers it. The money lands in your checking or savings account just like a regular deposit.
The catch is that not all PayPal balances can be transferred. Money you received as a payment for goods or services can move to your bank. Money from a refund, a transfer from another person, or a withdrawal from PayPal Credit cannot. If you are unsure whether your balance is transferable, PayPal will tell you when you start the transfer—it will either go through or show you an error with the reason.
Key Takeaways
- Standard transfers take one to three business days and cost nothing if you choose the free option.
- Instant transfers are available for an extra fee (usually 1.5% of the amount) and land in your account within 30 minutes.
- Your bank account must be linked to your PayPal account before you can transfer money to it.
- Money from payments for goods or services can be transferred, but refunds and peer-to-peer transfers cannot.
- If a transfer fails, PayPal returns the money to your PayPal balance within one to three business days.
How to link your bank account to PayPal
Before you can transfer money out, you need to add your bank account to PayPal. Go to your account settings, find the "Wallet" or "Banks and Cards" section, and select "Link a Bank Account." PayPal will ask for your routing number and account number—both appear on the bottom left of a check, or you can find them in your bank's app or by calling the bank.
PayPal then sends two small deposits (usually under $1 each) to your bank account. This takes one to two business days. Once they arrive, you go back to PayPal and confirm the amounts. This step proves you own the account. After confirmation, your bank account is linked and ready to use for transfers.
If you already have a bank account linked, you can skip this step and move straight to the transfer. You can link multiple bank accounts to one PayPal account, but you can only transfer to one at a time.
Standard transfer versus instant transfer
PayPal offers two ways to move money out. Standard transfer is free and takes one to three business days. The money leaves your PayPal balance right away, but your bank does not receive it until the transfer window closes. Weekends and bank holidays add time—a transfer you start on Friday evening might not land until Tuesday.
Instant transfer costs a fee (usually 1.5% of the amount you send, with a minimum of around 25 cents) and lands in your bank account within 30 minutes on business days. If you transfer $100, you pay roughly $1.50 and receive $98.50 in your bank. Instant transfer is useful when you need the money the same day, but the fee adds up if you transfer often.
Both options pull from your PayPal balance. If your balance is too low, neither will work. You cannot transfer money you do not have, even if you have a PayPal Credit line or a linked credit card.
The step-by-step process to transfer money
Log into PayPal on the web or in the app. On the web, click "Wallet" at the top, then "Transfer Money." On the app, tap the menu icon, then "Wallet," then "Transfer Money." PayPal will show your available balance—this is the money you can actually move.
Select "Transfer to Your Bank" and enter the amount. PayPal will show you which bank account the money will go to (if you have more than one linked, you can choose). Choose standard or instant transfer. If you pick instant, PayPal shows the fee before you confirm. Review the details and tap "Transfer Now."
PayPal sends a confirmation email with a reference number. Save this number in case something goes wrong. For standard transfers, check your bank account one to three business days later. For instant transfers, the money should appear within 30 minutes during business hours.
What happens if a transfer fails or takes too long
If a transfer fails, PayPal returns the money to your PayPal balance within one to three business days. Common reasons for failure include a closed bank account, incorrect routing or account number, or a mismatch between the name on your PayPal account and the name on your bank account. PayPal sends an email explaining why the transfer did not go through.
If the money does not arrive after the expected time, check your bank account first—sometimes banks process deposits under a different name or description, making them hard to spot. Search your bank statement for "PayPal" or the amount you transferred. If you still cannot find it, contact PayPal with your transfer reference number. They can check the status on their end and tell you whether the money is stuck in transit or if the bank rejected it.
For instant transfers, if the money does not arrive within 30 minutes, contact PayPal support right away. Instant transfers have a higher success rate, but when they fail, PayPal usually refunds the fee along with returning your money to your balance.
Limits on how much you can transfer
PayPal does not publish a single transfer limit that applies to everyone. Your limit depends on your account age, history, and verification status. New accounts typically have lower limits—sometimes as low as $500 per transfer or $1,000 per day. Older, verified accounts with clean transaction histories can transfer much more.
To find your limit, start a transfer and PayPal will show you the maximum amount you can send. If you hit your limit and need to transfer more, you can wait for your limit to reset (usually daily or weekly) or contact PayPal to ask for a higher limit. PayPal may ask for additional verification, such as a photo ID or proof of address.
Instant transfers sometimes have a separate, lower limit than standard transfers. If you want to move a large amount instantly, check your limit before you start.
Fees and what they cover
Standard transfers cost nothing. Instant transfers cost 1.5% of the amount (rounded to the nearest cent, with a minimum fee of around 25 cents). Some business accounts or premium PayPal products may have different fee structures—check your account settings to see what applies to you.
The fee is deducted from your PayPal balance before the money goes to your bank. If you transfer $100 instantly, your PayPal balance drops by $101.50 (the $100 plus the $1.50 fee), and your bank receives $100. You do not pay the fee separately—it comes out of what you are transferring.
PayPal does not charge a fee to link a bank account, and your bank should not charge you to receive a transfer from PayPal (though some banks charge for incoming transfers from third parties—check with your bank if you are unsure).
Frequently Asked Questions
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 whichever account you link. You can link both a checking and a savings account and choose which one to transfer to each time.
What if my bank account name does not match my PayPal name exactly?
Minor differences (like a middle initial or nickname) usually do not block transfers. Major mismatches (like a completely different name) will cause the transfer to fail. If your names do not match, contact your bank to confirm the account is in your name, then contact PayPal to update your account information or re-verify the bank account.
Can I cancel a transfer after I start it?
For standard transfers, you can cancel within a few minutes of starting it—before PayPal processes the request. Once processing begins, the transfer cannot be stopped. For instant transfers, cancellation is not possible once you confirm. If you need to stop a transfer, act immediately and contact PayPal support.
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 be taxable income depending on how you earned it. If you received it as payment for work or sales, you owe taxes on that income regardless of whether it stays in PayPal or moves to your bank. Keep records of what the money was for.
How long does it take to link a new bank account?
Linking takes two to three business days total. PayPal sends two small deposits to your account (one to two business days), and then you confirm the amounts in PayPal (instant). After confirmation, the account is linked and ready to use for transfers.