5 Banks with No Overdraft Fees

Overdraft fees are charged when you spend more than what’s in your account balance — talk about getting kicked when you’re down. The good news is that more banks are ditching overdraft fees or offering some sort of overdraft protection. Compare top bank accounts without overdraft fees and accounts that offer overdraft protection programs.

5 top bank accounts with no overdraft fees

Plenty of accounts give you multiple overdraft options, including Capital One, Chime and SoFi®.

• SoFi Checking and Savings
• Varo Bank Account
• Capital One’s 360 Checking Account
• Ally Bank Spending Account
• Chime® Checking Account

Finder Score	Fee	Minimum deposit to open	Annual Percentage Yield (APY)
Finder score 9 Excellent SoFi Checking and Savings	Finder score 9 Excellent	$0 per month	$0	Up to 3.30%	Earn up to 4.00% APY on savings and $50 or $400 with direct deposit. Open a new SoFi Checking and Savings account by 31 December 2026, set up eligible direct deposit within 60 days, and maintain direct deposit for six months. T&Cs apply.	Go to site View details Compare product selection Compare	loading	Why we like it This hybrid account has $0 monthly fees and no opening deposit requirements. There are no overdraft fees automatically, and it will decline transactions that would result in a negative balance. However, you can enroll in Overdraft Protection, which automatically transfers funds from your savings to your checking to cover transactions that would put your account in the red. There's also an optional Overdraft Coverage service, if you have direct deposits of at least $1,000 per month, which covers up to $50 if you overdraft and the amount is deducted from your next deposit. Pros & cons Pros $0 monthly fees High APYs Early direct deposit High FDIC insurance Savings Vaults and Roundups Cons Online only Direct deposit required for Overdraft Coverage
Finder score 9.6 Excellent Varo Bank Account	Finder score 9.6 Excellent	$0 per month	$0	N/A	Go to site View details Compare product selection Compare	loading	Why we like it Another account with no monthly fees or overdraft fees and cashback rewards up to 6% with select brands. If you attempt a transaction that would overdraft your Varo checking account, Varo simply denies or returns that transaction. If you do end up with a negative balance, Varo still won't charge a fee. Varo also offers cashback rewards. However, if your account balance is negative for too long, Varo will investigate the account and may close it. Pros & cons Pros No monthly fees No fees for overdrafts or negative balance Up to 6% cash back with select brands Cons Online only No overdraft protection options
Finder score 9.6 Excellent Chime® Checking Account	Finder score 9.6 Excellent	$0 per month	$0	N/A	View details Compare product selection Compare	loading	Why we like it Chime® is a fintech, and its Checking Account has no monthly fees and no overdraft fees. It also offers an overdraft protection service called Chime SpotMe®, which you can get with direct deposit of at least $200 per month. This feature allows you to overdraft up to a certain amount, starting at $20 and up to $200, based on factors such as account activity and history. If Chime 'spots' you for an overdraft, the amount is deducted from your next deposit. SpotMe is also entirely optional, and there are no fees. Pros & cons Pros $0 monthly fees No overdraft fees Optional SpotMe overdraft protection Cons Online only Direct deposit requirements for SpotMe
Finder score 9.2 Excellent Capital One 360 Checking	Finder score 9.2 Excellent	$0 per month	$0	0.10% on balances of $0.01+	Earn a $250 bonus with 360 Checking. Open a new account on or after August 22, 2024 using the promo code CHECKING250, then set up and receive at least 2 direct deposits of $500 or more within 75 days of account opening. T&Cs apply.	View details Compare product selection Compare	loading	Why we like it Capital One's 360 Checking account offers three overdraft options and has completely eliminated all overdraft fees on its personal accounts. You can choose to auto-decline transactions that would overdraft, opt for overdraft protection that transfers money from your linked savings or allow overdrafts for no fees — but you must resolve negative balances immediately. The 360 Checking account is also interest-bearing and has no monthly fees or foreign transaction fees. Pros & cons Pros Three overdraft options No overdraft fees across all Cap One accounts $0 monthly fees 0.1% APY on all balances Cons Pricey outgoing domestic wires
Finder score 9.6 Excellent Ally Bank Spending Account	Finder score 9.6 Excellent	$0 per month	$0	0.25% on balances of $15,000+ 0.10% on balances of to $15,000	View details Compare product selection Compare	loading	Why we like it The Ally Bank Spending Account has no overdraft fees or monthly fees. If you attempt to perform a transaction that would put your balance in the negative, Ally declines it. Additionally, you can enable the CoverDraft feature, a safety net that offers up to $250 if you overdraft. To qualify for CoverDraft, you either need direct deposits of $250 per month or at least $100 in your account. The next deposit you make in the account will be applied to the negative balance, and you have 14 days to fully resolve the overdraft. There are also no fees for CoverDraft. Pros & cons Pros No monthly or overdraft fees CoverDraft for up to $250 in protection Envelope budgeting with Buckets Cons Online only Direct deposit or minimum balance required for CoverDraft

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Why do banks charge overdraft fees?

If you were to perform a transaction that would create a negative balance on your checking account, and the bank allows that transaction to go through, they’re essentially helping you pay for that transaction. And for this “service,” they charge you a fee, typically around $30 to $35 per transaction.

Having a bank account without overdraft fees typically means you’re not allowed to overdraft, and if you can’t overdraft, there are no overdraft fees. If you were to attempt a transaction that would put your account in the red, your bank would simply deny that transaction.

Can I overdraft and not be charged a fee?

Typically, no, being allowed to overdraft usually means having to pay a fee.

An exception would be that you’ve set up some sort of overdraft protection that withdraws money from another linked account, commonly a savings account at the same bank. Money from the linked account would be moved to your checking account to cover the transaction. For banks with overdraft protection that works like this, there usually isn’t a fee, since you’re using your own money to cover the overdraft.

Compare top checking accounts

Narrow down top checking accounts by monthly fees, APYs and features. For a better comparison, tick the Compare box on multiple accounts to see them side by side.

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Finder Score	Fee	Minimum deposit to open	Annual Percentage Yield (APY)
Promoted Finder score 8.6 Great Consumers Credit Union Rewards Checking	Finder score 8.6 Great	$0 per month	$5	5.00% on balances of $0 to $10,000 4.00% on balances of $0 to $10,000 3.00% on balances of $0 to $10,000	$150 REWARD Go to site View details Compare product selection Compare	loading
Promoted Finder score 9 Excellent SoFi Checking and Savings	Finder score 9 Excellent	$0 per month	$0	Up to 3.30%	Earn up to 4.00% APY on savings and $50 or $400 with direct deposit. Open a new SoFi Checking and Savings account by 31 December 2026, set up eligible direct deposit within 60 days, and maintain direct deposit for six months. T&Cs apply.	Go to site View details Compare product selection Compare	loading
Promoted Finder score 9.2 Excellent Current	Finder score 9.2 Excellent	$0 per month	$0	4.00% on balances of $0.01 to $2,000	Get a $100 referral bonus by inviting your friends to join Current. Once the person receives the invite link, applies your unique referral code, and makes qualifying Eligible Payroll Deposits of at least $200 within 45 days of opening the account, you and the referred friend each earn $100. T&Cs apply.	Go to site View details Compare product selection Compare	loading
Finder score 8.4 Great Chase Secure Banking℠	Finder score 8.4 Great	$4.95 per month (can be waived)	$0	N/A	New Chase checking customers enjoy a $125 bonus, when you open a new Chase Secure Banking account and complete 10 qualifying transactions within 60 days of coupon enrolment. T&Cs apply.	Go to site View details Compare product selection Compare	loading
Finder score 9.6 Excellent Varo Bank Account	Finder score 9.6 Excellent	$0 per month	$0	N/A	Go to site View details Compare product selection Compare	loading

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How we picked these

What is the Finder Score?

The Finder Score crunches over 300 checking accounts from hundreds of financial institutions. It takes into account the product's monthly fees, overdraft fees, opening deposit, customer support options, ATM network and features — this gives you a simple score out of 10.

To provide a Score, Finder’s banking experts analyze hundreds of checking accounts against what we consider is the best option: no monthly fees, no overdraft fees, a large ATM network of 50,000 or more, additional features outside of typical banking services, and the optional perk of earning interest. Accounts that are nearly free to maintain and use are scored the highest, while accounts with costly fees and few features are scored the lowest.

Read the full breakdown

Bottom line

Overdraft fees are a pain, and they can be expensive, often around $35 per incident. If you’d rather avoid overdrafting altogether, choose a checking account that doesn’t allow overdrafts so you never have to pay a fee. However, if you like the ability to overdraft, consider an account that offers overdraft protection services with no fees.

For more options, compare the best free checking accounts for no-fee and stress-free banking.

Frequently asked questions

Are overdraft fees legal?

Yes, and they are regulated. Overdraft fees must comply with various regulations and rules.

Weren’t overdraft fees going to be capped?

The Consumer Financial Protection Bureau (CFPB) attempted to cap overdraft fees at $5 or give banks other ways to handle overdrafts. The CFPB overdraft rule was finalized in December 2024, but was later overturned by Congress.

Can you get overdraft fees waived?

Yes, sometimes you can get overdraft fees waived. You may be able to ask your bank to waive the overdraft fee if you normally have a good banking history or have never overdrafted before. Other banks have overdraft grace periods, in which they may wait to charge you an overdraft fee if you resolve the negative balance within a certain time frame, or refund the overdraft fee if you resolve the balance quickly.

Is an overdraft considered a loan?

Technically, yes, when a bank allows you to overdraft they are “lending” you money to perform a transaction when your bank account balance is too low.

To make sure you get accurate and helpful information, this guide has been edited by Holly Jennings as part of our fact-checking process.

Written by

Bethany Hickey

Banking editor

Bethany Hickey is the banking editor and personal finance expert at Finder, specializing in banking, lending, insurance, and crypto. Bethany’s expertise in personal finance has garnered recognition from esteemed media outlets, such as Nasdaq, MSN, Yahoo Finance, GOBankingRates, SuperMoney, AOL and Newsweek. Her articles offer practical financial strategies to Americans, empowering them to make decisions that meet their financial goals. Her past work includes articles on generational spending and saving habits, lending, budgeting and managing debt. Before joining Finder, she was a content manager where she wrote hundreds of articles and news pieces on auto financing and credit repair for CarsDirect, Auto Credit Express and The Car Connection, among others. Bethany holds a BA in English from the University of Michigan-Flint, and was poetry editor for the university’s Qua Literary and Fine Arts Magazine. See full bio

Bethany's expertise

Bethany has written 497 Finder guides across topics including:

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