BEST OF
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Overdraft fees are the fees that banks charge consumers who make a transaction that costs more than the available funds in their account. Overdraft fees tend to be in the range of $30-$35 per occurrence, and some banks charge that fee multiple times per day if a consumer continues to make transactions that overdraft their account. If a consumer isn’t vigilant about watching their account balance, they could wind up with more than $100 in fees without realizing they’ve overdrafted.
Some banks have worked to create better overdraft services for consumers by reducing or eliminating overdraft fees or by offering free or low-cost overdraft protection. The banks on this list have created consumer-friendly overdraft policies and have strong overall star ratings for their other consumer products and customer service. See our picks below.
A note about methodology: The financial institutions on this list all received a 4.5- or 5-star rating on their overdraft services based on NerdWallet’s star-rating process. The star ratings listed on this roundup, however, reflect the financial institutions’ checking account star ratings, which include such factors as monthly fee, minimum opening deposits and domestic ATMs. Learn more about star ratings on our methodology page.
Overdraft fees are the fees that banks charge consumers who make a transaction that costs more than the available funds in their account. Overdraft fees tend to be in the range of $30-$35 per occurrence, and some banks charge that fee multiple times per day if a consumer continues to make transactions that overdraft their account. If a consumer isn’t vigilant about watching their account balance, they could wind up with more than $100 in fees without realizing they’ve overdrafted.
Some banks have worked to create better overdraft services for consumers by reducing or eliminating overdraft fees or by offering free or low-cost overdraft protection. The banks on this list have created consumer-friendly overdraft policies and have strong overall star ratings for their other consumer products and customer service. See our picks below.
A note about methodology: The financial institutions on this list all received a 4.5- or 5-star rating on their overdraft services based on NerdWallet’s star-rating process. The star ratings listed on this roundup, however, reflect the financial institutions’ checking account star ratings, which include such factors as monthly fee, minimum opening deposits and domestic ATMs. Learn more about star ratings on our methodology page.
Best Banks for Overdrafts
SoFi Checking and Savings
APY
2.50%
With $0 min. balance for APY
Bonus
$250
Earn up to $250 with direct deposit. Terms apply.
Bonus
$250
Earn up to $250 with direct deposit. Terms apply.
Why we like it
SoFi charges no overdraft fees, and customers can also opt into two different options to cover their accounts in case of an overdraft. The first option is free overdraft protection, which allows customers to transfer money from their savings balance to cover the transaction. The second option is no-fee overdraft coverage, where SoFi will cover a debit card transaction that would result in an overdraft of up to $50, as long as a customer qualifies by making $1,000 or more in direct deposits per month.
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Alliant Credit Union High-Rate Checking
APY
0.25%
With $0 min. balance for APY
Why we like it
Alliant Credit Union doesn’t charge overdraft fees, and it offers two free services that customers can enroll in to cover overdrafts. The first service is overdraft protection, where customers can transfer funds from their linked Alliant savings account to cover an overdraft. With the second service, courtesy pay, Alliant will cover checks, electronic payments and transfers that extend beyond your overdraft protection. To qualify for courtesy pay, customers must be Alliant Credit Union members for six months and transfer $600 per month into their checking account. The overdraft amount must also be paid back immediately.
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at Axos Bank®, Member FDIC
Axos Bank® Rewards Checking
APY
1.25%
With $0 min. balance for APY
Bonus
$100
Earn $100 with direct deposit. Terms apply.
at Axos Bank®, Member FDIC
Bonus
$100
Earn $100 with direct deposit. Terms apply.
Why we like it
Axos doesn’t charge any overdraft fees; transactions are declined unless a customer is enrolled in one of Axos’ overdraft protection programs. There are two options: a free overdraft protection transfer from a linked money market or savings account, or an overdraft line of credit. The overdraft line of credit has an 18% APR, so it could be an expensive option. If a customer’s account is overdrawn from an automatic electronic transfer such as bill pay or a check, Axos may charge $25 per item, with a maximum of three charges per day.
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Ally Bank Interest Checking Account
APY
0.10%
With $0 min. balance for APY
Why we like it
In June 2021, Ally removed overdraft fees from all of its accounts. If a customer is worried about accidentally overdrafting their account, there are two options for overdraft protection. The first option is to set up free overdraft protection transfers from a linked Ally savings account or money market account. The transfer will be rounded to the nearest $100 and sent to the customer’s checking account. The second option is Ally’s CoverDraft service, which provides up to $250 in coverage in case a customer overdrafts. A customer can qualify for CoverDraft for 30 days after making a $100 deposit into their checking account, which means they receive basic overdraft coverage up to $100. If a customer deposits at least $250 for two months in a row, they qualify for up to $250 in coverage. The customer’s next deposit will apply to their negative balance, and they have 14 days to bring their account back to a positive balance.
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One Spend
Why we like it
One doesn’t charge any overdraft fees or nonsufficient funds fees. If a customer deposits at least $20 into their One account, then they have access to up to $200 in overdraft coverage linked to their Spend Pocket, which is One’s version of a checking subaccount. The negative balance is automatically repaid with the next deposit a customer makes into their Spend Pocket. If the negative balance carries over to the next month, then the customer will be charged an annual percentage rate (APR) of 12%, which is a 1% interest rate per month. Customers can enable or disable the overdraft coverage feature in their Spend Pocket.
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Navy Federal Credit Union Free EveryDay Checking
APY
0.01%
With $0 min. balance for APY
Why we like it
Navy Federal Credit Union has a relatively low overdraft fee of $20 per occurrence with a maximum charge of one overdraft fee per day. Customers can opt out of overdrafts — meaning a transaction will be declined if it would result in an overdraft — or customers can use two different overdraft coverage options. The first option is a free overdraft protection transfer from their savings account, and the second is a checking line of credit, which charges an interest rate from 13.9% to 17.9% APR.
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Capital One 360 Checking
APY
0.10%
With $0 min. balance for APY
Why we like it
Capital One doesn’t charge any overdraft fees, and customers have a few ways to handle potential overdrafts when they occur. The first option is to auto-decline any transaction that might result in an overdraft, the second option is a free transfer from a linked savings account and the third option is to enroll in No-Fee Overdraft. The latter is a program where customers authorize Capital One to consider paying transactions that would otherwise overdraft their account. To qualify for No-Fee Overdraft, customers must deposit $250 into their checking account for two out of the prior three months.
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Last updated on June 27, 2022
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SoFi Checking and Savings
APY
2.50%
With $0 min. balance for APY
Bonus
$250
Earn up to $250 with direct deposit. Terms apply.
Discover Bank Online Savings
APY
2.35%
With $0 min. balance for APY
Bonus
$200
Requirements to qualify
at Discover Bank, Member FDIC
LendingClub High-Yield Savings
APY
3.12%
With $0 min. balance for APY
at LendingClub Bank, Member FDIC
Methodology
We took a close look at over 80 financial institutions and financial service providers, including the largest U.S. banks based on assets, internet search traffic and other factors; the nation’s largest credit unions, based on assets and membership; and other notable and/or emerging players in the industry. We rated them on criteria including annual percentage yields, minimum balances, fees, digital experience and more.
Financial institutions and providers surveyed are: Affirm, Alaska USA Federal Credit Union, Alliant Credit Union, Ally Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank of America, Bank of the West, Bank5 Connect, Bank7, Barclays, BB&T (now Truist), BMO Harris, Boeing Employees Credit Union, Bread Savings, BrioDirect, Capital One, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens, Citizens Bank, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Current, Discover Bank, E-Trade, Fifth Third Bank, First Foundation, First Tech Federal Credit Union, FNBO Direct, GO2bank, Golden 1 Credit Union, HSBC Bank, Huntington Bank, Industrial Bank, KeyBank, Lake Michigan Credit Union, LendingClub Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Monifi, Nationwide (by Axos), Navy Federal Credit Union, NBKC, One, OneUnited Bank, Pentagon Federal Credit Union, PNC, Popular Direct, PurePoint Financial, Quontic Bank, Redneck Bank, Regions Bank, Revolut, Salem Five Direct, Sallie Mae Bank, Santander Bank, Scarlet, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Service Credit Union, State Employees’ Credit Union of North Carolina, SoFi, Suncoast Credit Union, SunTrust Bank (now Truist), Synchrony Bank, TAB Bank, TD Bank, TIAA Bank, Truist Bank, U.S. Bank, UFB Direct, Union Bank, Upgrade, USAA Bank, Varo, Vio Bank, Wells Fargo and Zynlo Bank.