BEST OF

7 Best Banks for Overdrafts

Jun 27, 2022

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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.

» Learn more about overdrafts with our guide to overdraft programs and fees

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.

» How does your bank stack up? Compare what banks charge for overdrafts

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

Our pick for

Overdrafts

NerdWallet rating 

5.0

/5
SoFi Checking and Savings
Learn more

at SoFi, Member FDIC

Monthly fee

$0

APY

2.50%

With $0 min. balance for APY

Bonus

$250

Earn up to $250 with direct deposit. Terms apply.

NerdWallet rating 

4.5

/5
Alliant Credit Union High-Rate Checking

Monthly fee

$0

APY

0.25%

With $0 min. balance for APY

Bonus

N/A

NerdWallet rating 

5.0

/5
Axos Bank® Rewards Checking
Learn more

at Axos Bank®, Member FDIC

Monthly fee

$0

APY

1.25%

With $0 min. balance for APY

Bonus

$100

Earn $100 with direct deposit. Terms apply.

NerdWallet rating 

4.5

/5
Ally Bank Interest Checking Account

Monthly fee

$0

APY

0.10%

With $0 min. balance for APY

Bonus

N/A

NerdWallet rating 

3.5

/5
One Spend

Monthly fee

$0

APY

N/A

Bonus

N/A

NerdWallet rating 

4.5

/5
Navy Federal Credit Union Free EveryDay Checking

Monthly fee

$0

APY

0.01%

With $0 min. balance for APY

Bonus

N/A

NerdWallet rating 

5.0

/5
Capital One 360 Checking

Monthly fee

$0

APY

0.10%

With $0 min. balance for APY

Bonus

N/A

Last updated on June 27, 2022

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SoFi Checking and Savings

5.0

NerdWallet rating 
SoFi Checking and Savings

APY

3.75%

With $0 min. balance for APY

Bonus

$250

Earn up to $250 with direct deposit. Terms apply.

at SoFi, Member FDIC

Discover Bank Online Savings

5.0

NerdWallet rating 
Discover Bank Online Savings

APY

3.30%

With $0 min. balance for APY

Bonus

$200

Requirements to qualify

at Discover Bank, Member FDIC

Capital One 360 Performance Savings™

5.0

NerdWallet rating 
Capital One 360 Performance Savings™

APY

3.30%

With $0 min. balance for APY

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.

To recap our selections...

NerdWallet's Best Banks for Overdrafts