Overdraft Fees: Compare What Banks Charge

Overdraft fees can be expensive, with some ranging from $30 to $35, but some banks charge low or no overdraft fees.
Chanelle Bessette
Spencer Tierney
By Spencer Tierney and  Chanelle Bessette 
Updated
Edited by Sara Clarke

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An overdraft fee is often one of the most expensive fees from a financial institution, but not all charge the same amount. And some don’t even have an overdraft fee. Some banks also offer small buffer amounts — such as $5 — that customers can overdraft without incurring a fee. Some offer larger buffer amounts and grace periods as well.

Overdraft news: The Consumer Financial Protection Bureau has announced proposed regulations to significantly reduce overdraft fees. If passed, these changes will go into effect in October 2025.

Institutions with low or no overdraft fees

  • No overdraft fees.

  • Free overdraft protection transfers from linked Alliant accounts.

  • Courtesy Pay overdraft coverage for eligible customers.

Alliant Credit Union doesn’t charge overdraft fees. Customers can opt in to a free overdraft protection transfer service to cover unexpected overdrafts. Alliant’s Courtesy Pay service — where Alliant pays to cover transactions that extend beyond a customer’s overdraft protection — is available to customers who have been credit union members for at least six months and have transferred at least $600 into their accounts each month.

  • No overdraft fees.

  • Free transfers from linked Ally accounts.

  • Free overdraft coverage up to $250 with CoverDraft program.

Ally Bank doesn’t charge overdraft fees, but customers can opt in to two overdraft protection services: free overdraft protection transfers from a linked Ally savings or money market account or up to $250 of coverage with the bank’s CoverDraft program. If a customer uses their CoverDraft, they have 14 days to replenish their account funds.

  • No overdraft program or fees.

American Express National Bank rejects any transaction that would result in a negative balance. Though this helps you avoid fees, you may want to look into a more flexible overdraft program if you’re concerned about needing to be able to overdraft.

  • No overdraft fees.

Axos Bank typically rejects any transaction that would result in an overdraft. If a customer is enrolled in overdraft protection, however, then they can link a money market account or savings account and make a free overdraft protection transfer or they can open a line of credit.

  • No overdraft fees.

  • Free transfers from linked savings accounts.

Capital One 360 offers free overdraft protection transfers from a linked Capital One 360 savings account or money market account, and the bank might decide to not charge an overdraft fee for a check payment, electronic payment or recurring debit card transaction that results in an overdraft. If you don’t opt in to these services, your transactions will be declined by the bank.

  • Free automatic transfers from savings and brokerage accounts.

This investment brokerage’s checking account doesn’t have fees for overdraft protection services. When you overdraft with your debit card, Charles Schwab Bank automatically pulls money from your linked Schwab One brokerage account or your Schwab savings account for free.

  • No overdraft program or fees.

  • Overdraft coverage up to $200 with SpotMe®.

Chime, a financial technology company, offers a program called SpotMe®. Eligible customers who meet the requirements can overdraft up to $200 with no fee. Transactions that would overdraw the account by more than $200, or overdraft transactions by ineligible members, are generally declined. There are no overdraft or nonsufficient funds fees.

Chime says: "Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date."

"SpotMe® on Debit is an optional, no fee overdraft service attached to your Chime Checking Account. To qualify for the SpotMe on Debit service, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account each month and have activated your physical Chime Visa® Debit Card or secured Chime Credit Builder Visa® Credit Card.

Qualifying members will be allowed to overdraw their Chime Checking Account for up to $20 on debit card purchases and cash withdrawals initially but may later be eligible for a higher limit of up to $200 or more based on Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Debit limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime's sole discretion. Although Chime does not charge any overdraft fees for SpotMe on Debit, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe on Debit will not cover any non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. SpotMe on Debit Terms and Conditions: https://www.chime.com/policies."

  • No overdraft fees.

  • Overdrive program gives buffer to those who qualify and opt in.

Current doesn’t allow overdrafts unless you qualify for and opt in to Current’s Overdrive program. You become eligible when you direct deposit $500 or more per month, and once you opt in to it, you are given a dollar limit that you can overdraft without a fee. The limit begins at $25 and goes up to $200.

  • No overdraft fees.

  • Offers free overdraft protection via linked account.

With Discover Bank, you can link a qualifying Discover® savings or money market account for free transfers if you don’t have enough cash in your checking account. Otherwise, the bank will decline the transaction that would cause a negative balance, at no charge to you.

  • No overdraft program or fees.

HSBC Bank doesn’t allow transactions that would result in a negative balance. If you want the flexibility of being able to overdraft, you may want to look at other banking options.

  • No overdraft fees.

  • Free overdraft protection buffer for qualifying customers.

One customers who make at least $500 in eligible direct deposits per month can overdraft up to $200 fee-free.

  • No overdraft fees.

  • Free overdraft protection transfers and an overdraft line of credit.

Self-Help Credit Union has no overdraft fees, but customers can also opt in to a free overdraft protection transfer service from a linked account, or they can see whether they qualify for an overdraft line of credit.

  • No overdraft fees.

  • Free overdraft protection transfers and an overdraft buffer for qualifying customers.

SoFi charges no overdraft fees, but customers can also opt in to two overdraft protections options: free overdraft protection transfers from your linked SoFi Savings account or a free buffer, called Overdraft Coverage, where SoFi allows you to overdraft up to $50 as long as you make monthly direct deposits of $1,000 or more.

  • No overdraft or nonsufficient funds fees.

  • Free transfers from linked accounts.

The online financial institution TIAA Bank has a free overdraft protection transfer service from a linked account. TIAA also doesn’t charge any overdraft or nonsufficient funds fee and typically will decline a transaction that would overdraft an account.

  • No overdraft fees.

  • $100 Negative Balance Buffer program for eligible customers.

Truist Bank has no overdraft fees or related overdraft fees, including continuous negative balance fees, returned item fees or overdraft protection transfer fees. Truist’s Negative Balance Buffer allows customers to overdraw their account up to $100 as long as they meet these initial qualifications: Their account must be open at least 35 days, it must have a positive balance, and a direct deposit of at least $100 must be made for two consecutive months. To maintain eligibility, a customer must make a recurring direct deposit of at least $100 per month.

  • No overdraft fees for Safe Debit account.

  • $50 negative balance buffer for overdrafts for U.S. Bank Smartly Checking.

For U.S. Bank’s Safe Debit account, the bank doesn’t allow transactions that would result in an overdraft. In the event that a transaction does go through, there isn’t a fee.

The U.S. Bank Smartly Checking account allows customers to overdraft up to $50 with no overdraft protection transfer fee and a waived overdraft fee. If you overdraft more than $50, then you’ll be charged $36 up to four times per day.

  • No overdraft fees.

  • Varo Advance allows customers who meet certain qualifications to overdraft up to $500 fee-free.

Varo Bank doesn’t charge overdraft fees, and it declines transactions that would result in a negative balance. Varo has an overdraft protection service called Varo Advance that offers an overdraft buffer.

What is an overdraft fee?

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When a transaction drops your checking account balance below zero, a financial institution will choose to reject the transaction or approve it and provide the funds to cover the transaction. You may be charged fees in either case. The charge for a rejected transaction or check is known as a nonsufficient funds fee, while the charge for an approved transaction is called an overdraft fee. Some providers charge multiple nonsufficient funds or overdraft fees per day if you make many transactions with a negative balance, meaning you could owe hundreds of dollars in penalties.

You can read our explainer on how to avoid overdraft fees. As a rule, it’s best to opt out of overdraft coverage for ATM or one-time debit card transactions if you think you will have issues with overdrafts. When you opt out, the negative debit or ATM transaction will be declined and you won’t be charged a fee.

If not paying your overdraft fees has gotten you placed into ChexSystems, you may want to look into opening a second chance checking account. These accounts are designed to help consumers qualify for a new checking account even with marks on their banking record.

Overdraft protection

Outside of the financial institutions without overdraft coverage fees, you can generally find a cheaper option with overdraft protection transfers.

These are opt-in programs that link a second account to your checking account. An overdraft would trigger a transfer from the second account to cover the transaction. The linked account can be a savings account, credit card, line of credit or even another checking account, depending on the provider’s policy. The cost of this transfer is around $10 or $12, although it can be cheaper. Sometimes the service is free.

Overdraft fees by institution

Financial institution

Overdraft coverage fee (per item)

Max fees per day

Total possible cost in a day (excludes extended overdraft fees)

No overdraft fees.

N/A.

N/A.

No overdraft fees; you have 14 business days to bring your balance back to positive to avoid your account being limited.

N/A.

N/A.

No overdraft fees.

N/A.

N/A.

$32 (No overdraft fees if account is overdrawn by $50 or less, or $0 transfer fee from linked account).

2.

$0 (transfers from linked account) to $64.

No overdraft fees.

N/A.

N/A.

$10 for each overdraft over $1.

2.

$20.

$15 (No overdraft fees if account is overdrawn by $50 or less, or $0 transfer fee per day from linked account).

3.

$0 (transfers from linked account) to $45.

$10 (or $0 transfer fee from linked account).

5.

$0 (transfers from linked account) to $50.

No overdraft fees.

N/A.

N/A.

No overdraft fees.

N/A.

N/A.

$34 (No overdraft fees if account is overdrawn by $50 or less at end of day, or $0 transfer fee from linked account).

3.

$0 (transfers from linked account) to $102.

No overdraft fees.

N/A.

N/A.

$35 (or $0 transfer fee per day from linked account).

5.

$0 (transfers from linked account) to $175.

Comerica

Up to $34 (or $0 transfer fee per day from linked account).

2.

$0 (transfers from linked account) to $68.

$4 (or $0 transfer fee from linked account).

2.

$0 (transfers from linked account) to $8.

No overdraft fees.

N/A.

N/A.

No overdraft fees.

N/A.

N/A.

$37 (or $0 transfer fee from linked account).

3.

$0 (transfers from linked account) to $111.

No overdraft fees.

N/A.

N/A.

$15 (or $0 transfer fee from linked account, plus options for personal lines of credit and ability to overdraft up to $50 without a fee).

3.

$0 (transfers from linked account) to $45.

$20 (or $0 transfer fee from linked account). Also, if your account is overdrawn for five consecutive business days, an additional $20 fee will be assessed.

3.

$0 (transfers from linked account) to $60.

$15 (or $0 for a transfer from a linked savings account or $8 per day from linked credit card or overdraft line of credit).

1.

$0 to $8 (transfers from linked account, credit card or line of credit) to $15.

$20 (or $0 transfer fee from linked account).

1.

$0 (transfers from linked account) to $20.

No overdraft fees.

N/A.

N/A.

$36 (or $0 transfer fee from linked account).

1.

$0 (transfers from linked account) to $36.

$36 (or $0 transfer fee from linked account).

5.

$0 (transfers from linked account) to $180.

$15 (or $0 transfer fee from linked account).

3.

$0 (transfers from linked account) to $45.

No overdraft fees.

N/A.

N/A.

No overdraft fees.

N/A.

N/A.

$35 (or $0 transfer fee per day from linked account, ability to overdraft up to $50 without a fee and a one-day grace period to bring account to $0 or above).

3.

$0 (transfers from linked account) to $105.

No overdraft fees (optional $0 transfer fee — otherwise transaction will be declined if the customer doesn’t have enough funds).

N/A.

N/A.

No overdraft fees (or $0 transfer fee from linked account as well as the ability to overdraft up to $100 with no fees when qualifications are met).

N/A.

N/A.

No overdraft fees for Safe Debit account. $36 for U.S. Bank Smartly Checking account (or $0 transfer fee from linked account and the ability to overdraft up to $50 without a fee).

4 for U.S. Bank Smartly Checking.

$0 (transfers from linked account) to $144.

No overdraft fees.

N/A.

N/A.

$35 (or $0 transfer fee from linked account).

3.

$0 (transfers from linked account) to $105.

Glossary of overdraft terms

  • ChexSystems. ChexSystems tracks and provides reports on consumer deposit accounts. Someone might be reported to ChexSystems if they’ve failed to repay an overdraft fee, which means that other banks might not let that person open an account until that negative mark falls off their record after five years.

  • Continuous negative balance fee. If a customer doesn’t bring their bank account back to a positive balance after overdrafting, their bank might charge a continuous negative balance fee until the customer funds their account.

  • Nonsufficient funds (NSF) fee. A bank will charge a nonsufficient funds fee if a transaction is attempted that can’t be covered by the funds in an account. NSF fees are also known as bounced check fees.

  • Overdraft. An overdraft occurs when a bank customer makes a transaction for a higher amount of money than the available balance in their account.

  • Overdraft coverage. Overdraft coverage can take different forms, including overdraft protection transfers and overdraft lines of credit. Customers are allowed by law to opt out of overdraft coverage by contacting their bank and making the request, and then their bank will simply decline any transaction that would result in an overdraft.

  • Overdraft fee. When bank customers overdraft, their bank might charge a fee — with some ranging from $30 to $35 — to discourage overdraft activity. Sometimes a bank might charge this fee multiple times per day if a customer keeps making transactions that overdraft their account.

  • Overdraft line of credit. An overdraft line of credit is similar to a credit card in that it’s a set amount of money that a customer can borrow from if they overdraft their account. Like a credit card, there's typically a high-interest charge for using an overdraft line of credit, and that interest rate is usually dependent on your credit score.

  • Overdraft protection transfer. Some banks allow customers to link another account to their checking account. That way, if they make a transaction that would result in an overdraft, the difference would be taken from their linked account instead.

  • Overdraft protection transfer fee. Some banks charge a fee for allowing customers to transfer funds from a linked account to cover a transaction that would overdraft their primary account.

  • Prepaid debit card. Prepaid debit cards allow people to load a debit card with a set amount of money, which can help prevent overdrafts because any transaction beyond the available card funds will be declined.

  • Second chance checking account. Second chance checking accounts are designed to help people who have been blocked from opening a traditional bank account because of flawed banking history, such as having unpaid overdraft fees and being put in ChexSystems. These accounts allow people to rebuild their banking history until the negative marks fall off their records.

How to get overdraft fees waived

If you’re charged an overdraft fee, here are some ways you may be able to get it waived:

  1. If you don’t have a history of negative transactions, contact your financial institution's customer service department and ask whether they will waive it.

  2. Ask about forgiveness policies. Some institutions have once-a-year fee forgiveness programs for customers in good standing.

  3. Ask about "rewind" programs. If you have an electronic deposit scheduled for your account that would have covered the overdrawn transaction, some providers will consider waiving the fee if the deposit arrives soon enough, usually by the next morning.

Overdraft fees, especially from overdraft coverage, are some of the steepest fees that financial institutions charge. Knowing these fees might help you decide whether to opt out of the programs or find cheaper overdraft alternatives from your provider.

Chime says: “Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank or Stride Bank, N.A.; Members FDIC.”

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