8 Best Banks for Overdrafts 2024

SoFi: Best for people who want a combo account

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.

Ally: Best for people who overdraft high amounts

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.

Chime: Best for people who overdraft often

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 or 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

• More info from Chime

  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.

  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."

Self-Help Credit Union: Best for people who want a credit union

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.

Alliant Credit Union: Best for people who want overdraft coverage just in case

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.

Navy Federal Credit Union: Best for people who rarely overdraft

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.

Discover® Bank: Best for people who have one-day shortfalls

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.

One: Best for people with occasional overdrafts

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.