Can I transfer ms account money into my bank account

No. Once funds are in your Microsoft account, the only way to remove them is by making a purchase.

Hi if you have MS money you can only purchase Microsoft goods and services, If it's in your bank then you can buy whatever you want. You can't transfer the MS money between accounts though.

Why not just phone the bank and transfer the money between the two accounts?

Your Paypal account either needs to have a valid credit card attached or a positive money balance, which can be transferred in from an attached bank account or another Paypal account.

Have you transferred money from your bank account to your PayPal account? I find that most PayPal transactions require this unless you use a creditcard.