8 Best Banks for Overdrafts of 2025
These financial institutions charge low or no overdraft fees and offer overdraft coverage options.
+ 1 more
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Overdraft fees are the fees that financial institutions charge consumers who make a transaction that costs more than the available funds in their account. Some banks and credit unions still charge an overdraft fee such as $30 or more per occurrence, possibly multiple times per day. If a customer isn’t vigilant about watching their account balance, they could face more than $100 in fees without realizing they’ve overdrafted.
The Consumer Financial Protection Bureau was pushing for a rule that would cap overdraft fees at $5 — and would have saved consumers an estimated $5 billion annually — but the Senate and House both voted to overturn that rule in spring 2025.
So while overdrafts still have the potential to be very expensive at some places, all the institutions on this list have reduced or eliminated overdraft fees and offer free or low-cost overdraft protection. The financial institutions on this list all received a 5-star rating on their overdraft services based on NerdWallet’s star-rating process. Learn more about star ratings on our methodology page. See our picks below.
» How does your bank stack up? Compare what banks charge for overdrafts
Why trust NerdWallet
Strict editorial guidelines to ensure fairness and accuracy in our coverage to help you choose the financial accounts that work best for you. See our criteria for evaluating banks and credit unions.
More than 100 financial institutions surveyed by our team of experts.
More than 50 data points considered for each bank, credit union and banking technology firm (or neobank) to be eligible for our roundups. For this roundup, more than a dozen data points were considered per institution.
Best Banks for Overdrafts
| Bank/institution | NerdWallet rating | APY | Bonus | Monthly fee | Overdraft star rating | Learn more |
|---|---|---|---|---|---|---|
5.0/5 | 0.50% With $0 min. balance for APY | Up to $300 Earn up to $300 with direct deposit. Terms apply. | $0 | 5.0/5 | Learn moreon partner's site at SoFi Bank, N.A., Member FDIC | |
5.0/5 | N/A | $360 Up to $360 per year. See website for details. | $0 | 5.0/5 | Learn moreon partner's site at Discover® Bank, Member FDIC | |
 Alliant Credit Union High-Rate Checking Learn moreon partner's site at Alliant Credit Union, Federally insured by NCUA | 4.8/5 | 0.25% With $0 min. balance for APY | N/A | $0 | 5.0/5 | Learn moreon partner's site at Alliant Credit Union, Federally insured by NCUA |
4.6/5 | N/A | $75 Requirements to qualify | $0 | 5.0/5 | Learn moreon partner's site at Chime® | |
4.3/5 | 0.10% With $0 min. balance for APY | N/A | $5.00 Waived with direct deposit or $2,500 minimum balance | 5.0/5 | ||
4.8/5 | 0.10% With $0 min. balance for APY | N/A | $0 | 5.0/5 | ||
4.7/5 | 0.01% With $0 min. balance for APY | N/A | $0 | 5.0/5 | ||
4.3/5 | N/A | N/A | $0 | 5.0/5 |
Our pick for
people who want a combo account
APY
0.50%
With $0 min. balance for APY
Bonus
Up to $300
Earn up to $300 with direct deposit. Terms apply.
Monthly fee
$0
Overdraft star rating
5.0/5
Our Take
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 automatically transfers money from a customer's 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.
More from SoFi: "We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at sofi.com/legal/banking-fees/."
"Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with Eligible Direct Deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage."
Our pick for
people who have one-day shortfalls
APY
N/A
Bonus
$360
Up to $360 per year. See website for details.
Monthly fee
$0
Overdraft star rating
5.0/5
Our Take
Discover doesn’t charge overdraft fees and lets you cover overdrawn transactions in two ways. Its free overdraft protection service involves linked savings accounts that auto-transfer funds to checking accounts, when needed, to help cover checks, online transfers, and online bills.
Discover’s Balance+ program, launched July 2024, is no-fee coverage only for debit card transactions only that overdraw checking account balances up to $200. Eligibility for the Balance+ program requires direct deposits of at least $200 per deposit monthly, and Discover also considers your account balance from the previous few days before an overdraft.
Outside of these two services, Discover generally doesn’t let you overdraw and rejects transactions with insufficient funds for no fee.
Our pick for
people who want overdraft coverage just in case
APY
0.25%
With $0 min. balance for APY
Bonus
N/A
Monthly fee
$0
Overdraft star rating
5.0/5
Our Take
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 the amount that your overdraft protection would cover. 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.
Our pick for
people who overdraft often
APY
N/A
Bonus
$75
Requirements to qualify
Monthly fee
$0
Overdraft star rating
5.0/5
Our Take
Chime charges no overdraft fees, and customers have access to Chime’s SpotMe® program for no-fee overdraft. Customers can qualify by making a monthly direct deposit of $200 or more and activating their Chime Visa® Debit Card or Chime Secured Credit Builder Visa® Credit Card, and they are initially given a $20 overdraft limit that can eventually be increased to $200. Chime suggests tipping for the service — a feature more common among cash advance apps — and it’s optional.
If you have friends who are Chime customers, you can also send a SpotMe Boost, which will temporarily raise your friend’s overdraft limit by $5. You can send and receive up to four Boosts per month, and you can only send one Boost per friend per month.
Note that Chime is not a bank; it is financial technology company, also called a neobank, that partners with banks to offer this account. This distinction is important as it affects how your money is protected.
» Learn more about how your money is insured at a neobank
Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.
Chime says: "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. Tipping or not tipping has no impact on your eligibility for SpotMe. SpotMe ® Boost is an optional, no fee service feature of SpotMe. Boosts are available to eligible Chime members enrolled in SpotMe and are subject to limits. See Terms and Conditions.
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."
Our pick for
people who want a credit union
APY
0.10%
With $0 min. balance for APY
Bonus
N/A
Monthly fee
$5.00
Waived with direct deposit or $2,500 minimum balance
Overdraft star rating
5.0/5
Our Take
Self-Help Credit Union charges no overdraft fees and offers two ways to cover an overdraft: a free overdraft protection transfer service from a linked account and an overdraft line of credit.
There is a $5 monthly fee for the credit union’s checking account, which is waived if you are under 24 years old, over 65 years old, make $500 or more in direct deposits per month, or maintain a daily combined balance of $2,500 or more in your Self-Help Credit Union accounts. To become a member at this credit union, you can pay a one-time $5 fee or be a resident in Georgia, Florida, North Carolina, South Carolina, or Virginia.
Our pick for
people who overdraft high amounts
APY
0.10%
With $0 min. balance for APY
Bonus
N/A
Monthly fee
$0
Overdraft star rating
5.0/5
Our Take
Ally has no overdraft fees for any of its accounts, and 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 30 days after making a $100 deposit into their checking account, which means they receive basic overdraft coverage up to $100. If a customer has direct deposits of at least $250 for two months in a row, they qualify for up to $250 in coverage. Direct deposits at least every 45 days are required to keep coverage.
If a customer overspends, their next deposit will apply to their negative balance, and they have 14 days to bring their account back to a positive balance.
Ally disclosure: Ally says: "Keep in mind, CoverDraft isn’t a line of credit or a guarantee. If your purchase isn’t covered for any reason (let’s say the transaction exceeds your CoverDraft limit, for example), it will be declined - but we’ll never charge you an overdraft fee."
Our pick for
people who rarely overdraft
APY
0.01%
With $0 min. balance for APY
Bonus
N/A
Monthly fee
$0
Overdraft star rating
5.0/5
Our Take
Navy Federal Credit Union is the only bank on this list that still has an overdraft fee, but it is relatively low at $20 per occurrence and has 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 and no fee would be charged— or customers can use two different overdraft coverage options. Apart from overdraft coverage, members have access to a free overdraft protection transfer from their savings account, as well as a checking line of credit, which charges an interest rate from 13.9% to 17.9% APR. There is no fee on transactions of $5 or less or if the total overdrawn balance for your account is less than $15.
Our pick for
people with occasional overdrafts
APY
N/A
Bonus
N/A
Monthly fee
$0
Overdraft star rating
5.0/5
Our Take
One doesn’t charge any overdraft fees. If a customer is a One Cash+ customer, meaning they deposit at least $500 into their One account each month, they have access to up to $200 in overdraft coverage linked to their Debit balance, which is One’s version of a checking account. Although called “Overdraft Protection,” this service functions as overdraft coverage instead of overdraft protection transfers. The negative balance is automatically repaid with the next deposit or transfer a customer makes into their Debit balance, which should happen as soon as possible.
Note that One, backed by Walmart, is not a bank; it is financial technology company, also called a neobank, that partners with a bank to offer this account. This distinction is important as it affects how your money is protected.
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Last updated on November 21, 2024
Methodology
We took a close look at over 100 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, All America Bank, Alliant Credit Union, Ally Bank, Amalgamated Bank, America First Credit Union, American Express National Bank, Andrews Federal Credit Union, Associated Bank, Axos Bank, Bank of America, Bank5 Connect, Barclays, Bask Bank, Bethpage Federal Credit Union, BMO, BMO Alto, Boeing Employees Credit Union, Bread Savings®, BrioDirect, Capital One, Carver Federal Savings Bank, CFG Bank, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens, Citizens Bank, City First Bank, Climate First Bank, Commerce Bank, Community First Credit Union of Florida, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Current, Customers Bank, Delta Community Credit Union, Discover® Bank, E*TRADE, EverBank (formerly TIAA Bank), Fifth Third Bank, First Foundation, First Internet Bank, First National Bank, First Tech Federal Credit Union, Flagstar Bank, FNBO Direct, Flagstar Bank, Forbright BankGlobal Credit Union, GO2bank, Golden 1 Credit Union, Greenwood, Hope Credit Union, Huntington Bank, Industrial Bank, Ivy Bank, Jenius Bank, KeyBank, Lake Michigan Credit Union, Laurel Road Bank, LendingClub Bank, Liberty Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, My Banking Direct, NASA Federal Credit Union, Navy Federal Credit Union, NBKC, Newtek Bank, One, OneUnited Bank, Pentagon Federal Credit Union, PNC, Poppy Bank, Popular Direct, Quontic Bank, Regions Bank, Revolut, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Securityplus Federal Credit Union, Self-Help Credit Union, Service Credit Union, SoFi, State Employees’ Credit Union of North Carolina, Suncoast Credit Union, Synchrony Bank, TAB Bank, TD Bank, Truist Bank, U.S. Bank, UFB Direct, Upgrade, USAA Bank, Varo, Vio Bank, Wells Fargo, Western Alliance Bank and Zynlo Bank.
NerdWallet's Best Banks for Overdrafts of 2025
- SoFi Checking and Savings: Best for people who want a combo account
- Discover® Cashback Debit: Best for people who have one-day shortfalls
- Self-Help Credit Union Personal Checking: Best for people who want a credit union
- Alliant Credit Union High-Rate Checking: Best for people who want overdraft coverage just in case
- Ally Bank Spending Account: Best for people who overdraft high amounts
- Chime® Checking Account: Best for people who overdraft often
- Navy Federal Credit Union Free EveryDay Checking: Best for people who rarely overdraft
- One Debit: Best for people with occasional overdrafts