Connect your bank account in three steps
PayPal lets you link a checking or savings account so money can move between your bank and your PayPal balance. You start in the PayPal app or website, go to your wallet settings, and add your bank details. PayPal then deposits two small test amounts (usually under $1 each) into your account within one to two business days. You confirm those amounts back in PayPal, and the connection is live.
Once linked, you can send money to other PayPal users from your bank balance, receive payments into your PayPal account and transfer them to your bank, or use PayPal's debit card to spend directly from your linked account. The connection stays active until you remove it, and you can link multiple accounts if you have more than one bank.
Key Takeaways
- PayPal sends two small test deposits to your bank account, and you must confirm the exact amounts in PayPal to complete the link.
- The verification process takes one to two business days for the test deposits to arrive, then a few minutes to confirm them.
- Once connected, your bank account becomes a funding source for sending money and a destination for receiving transfers from PayPal.
- You can remove the bank account link at any time from your wallet settings, and you can link a different account if your bank changes.
Step-by-step: adding your bank account
Log into PayPal on the website or open the app. On the website, click the gear icon in the top right and select Wallet. In the app, tap the menu icon (three horizontal lines) and go to Wallet. Look for the option to add a bank account or payment method.
Select Link a bank account or Add bank (the exact wording varies by region). PayPal will ask whether you want to link via Plaid, a third-party service that reads your bank login, or manually. Plaid is faster — you enter your bank's name, then your online banking username and password, and Plaid retrieves your account details automatically. Manual entry means you type in your routing number and account number yourself, which takes longer but works if your bank is not on Plaid's list.
If you choose Plaid, log into your bank account when prompted. Plaid does not store your password and only reads account information — it does not move money or change settings. Once Plaid confirms your account, PayPal shows you a summary of the account you are linking. Review it for accuracy, then confirm. If you choose manual entry, type your nine-digit routing number (found on your bank's website or the bottom left of a check) and your full account number, then confirm.
Waiting for and confirming the test deposits
After you link your account, PayPal sends two small deposits — usually between $0.01 and $0.99 each — to your bank account. These arrive within one to two business days. Check your bank statement or app for deposits labeled "PayPal" or "PAYPAL INST XFER". Write down the exact amounts.
Once the deposits land, return to PayPal and go back to your wallet or bank account settings. Look for a prompt to confirm your bank account or verify deposits. Enter the two amounts you saw in your bank statement in the exact order PayPal asks for them. If you enter them correctly, PayPal confirms the link immediately and removes the test deposits from your account (you do not keep the money).
If the deposits do not arrive after three business days, check that you entered your account number correctly. If the number was wrong, you may need to remove the account and start over. If the number was right but the deposits still did not come, contact your bank to confirm they are not filtering PayPal transfers, then contact PayPal support.
What happens after your account is linked
Your bank account now appears in your PayPal wallet as a funding source. When you send money to another PayPal user, you can choose to pay from your bank account, your PayPal balance, or a linked card. When someone sends you money through PayPal, it lands in your PayPal balance first — you then transfer it to your bank if you want it in your checking or savings account.
Transfers from PayPal to your bank usually take one to three business days, depending on your bank. Transfers from your bank to PayPal (to fund a payment) happen instantly or within minutes. If you use PayPal's debit card, you can spend directly from your linked bank account at any ATM or store that takes Mastercard.
Removing or changing your linked bank account
To unlink your bank account, go to your wallet settings, find the account in your list of payment methods, and select Remove or the trash icon. The account is disconnected immediately, and no future transfers can use it. Any money already in your PayPal balance stays there — removing the bank account does not affect it.
If your bank closes your account or you switch banks, you need to remove the old account and link the new one. The process is the same as the first time: add the new account, wait for test deposits, and confirm the amounts. You can link up to four bank accounts to a single PayPal account, so you do not have to remove one before adding another.
Security and fraud protection
PayPal uses encryption to protect your bank details and does not store your full account number on its servers. When you use Plaid to link, your banking password is never shared with PayPal — Plaid handles the login and only passes account information to PayPal.
If someone gains access to your PayPal account, they can transfer money from your linked bank account to their own PayPal account or to a card. This is why a strong, unique password and two-factor authentication matter. Enable two-factor authentication in your PayPal security settings so a login requires both your password and a code sent to your phone or email.
If you notice an unauthorized transfer, report it to PayPal immediately through the Resolution Center. PayPal's Buyer Protection covers unauthorized transfers in most cases, and your bank may also have fraud protection. Report the transfer to your bank as well — they can reverse it and investigate on their end.
Troubleshooting common problems
If PayPal rejects your bank account during linking, the most common reasons are a typo in your routing or account number, a mismatch between the name on your PayPal account and the name on your bank account, or your bank blocking the connection. Double-check the routing number on your bank's website and the account number on a recent statement or check. If the names do not match exactly, update your PayPal profile name first, then try linking again.
If your bank is blocking PayPal, call your bank's customer service line and ask them to allow PayPal transfers. Some banks flag third-party connections as suspicious until you confirm them. You may need to approve the connection through your bank's app or website before PayPal can complete the link.
If the test deposits arrive but you cannot find the confirmation prompt in PayPal, try logging out and back in, or close and reopen the app. If the prompt still does not appear after 24 hours, contact PayPal support with the dates and amounts of the deposits — they can manually confirm the link.
Frequently Asked Questions
Can I link a savings account, or does it have to be checking?
PayPal accepts both checking and savings accounts. The process is identical — you enter the routing and account number, wait for test deposits, and confirm. Transfers from PayPal to a savings account take the same one to three business days as transfers to checking.
What if I do not see the test deposits after two business days?
Wait until the third business day — deposits sometimes arrive on the weekend or take longer depending on your bank's processing speed. If they still have not arrived, log into your bank account and search for any deposits labeled "PayPal" or with a reference number. If you find nothing, contact your bank to ask if they blocked the transfer, then contact PayPal support with your account details.
Can I link someone else's bank account to my PayPal?
No. PayPal requires the name on the bank account to match the name on your PayPal account. If you want to receive money into a different account, you can change your linked account, but you cannot link an account that belongs to another person.
Do I get charged a fee to link my bank account?
Linking itself is free. However, PayPal charges a fee when you transfer money from your PayPal balance to your bank account — usually $0.25 per transfer in the US, though this varies by region. Sending money to another PayPal user from your linked bank account is free if you send as a friend or family transfer, but costs a small percentage if you send as a payment for goods or services.
What if I entered the test deposit amounts wrong?
PayPal usually gives you two or three attempts to enter the amounts correctly. If you run out of attempts, you need to remove the account and start the linking process over. The test deposits will be sent again, and you can try confirming them a second time.