NEW Earn $100 in rewards when you open a NerdWallet+ eligible bank account and make a direct deposit within 45 days.
BEST OF

6 Best Banks for Overdrafts 2024

These financial institutions charge low or no overdraft fees and offer overdraft coverage options.

Chanelle Bessette
By Chanelle Bessette 
Edited by Sara Clarke

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.

Overdraft fees are the fees that financial institutions charge consumers who make a transaction that costs more than the available funds in their account. The fees can be $30 or more per occurrence, and some institutions charge that fee multiple times per day if a customer continues to make transactions that overdraft their account. If a customer isn’t vigilant about watching their account balance, they could face more than $100 in fees without realizing they’ve overdrafted.

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.

Some institutions have worked to create better overdraft services for customers by reducing or eliminating overdraft fees or by offering free or low-cost overdraft protection. The institutions on this list have created consumer-friendly overdraft policies and have strong overall star ratings for their other 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 5-star rating on their overdraft services based on NerdWallet’s star-rating process. Learn more about star ratings on our methodology page.

Overdraft fees are the fees that financial institutions charge consumers who make a transaction that costs more than the available funds in their account. The fees can be $30 or more per occurrence, and some institutions charge that fee multiple times per day if a customer continues to make transactions that overdraft their account. If a customer isn’t vigilant about watching their account balance, they could face more than $100 in fees without realizing they’ve overdrafted.

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.

Some institutions have worked to create better overdraft services for customers by reducing or eliminating overdraft fees or by offering free or low-cost overdraft protection. The institutions on this list have created consumer-friendly overdraft policies and have strong overall star ratings for their other 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 5-star rating on their overdraft services based on NerdWallet’s star-rating process. Learn more about star ratings on our methodology page.

Best Banks for Overdrafts 2024

ELIGIBLE FOR REWARD

Our pick for

Overdrafts

ELIGIBLE FOR $100 IN REWARDS
NerdWallet rating 

5.0

/5
SoFi Checking and Savings
Learn more

at SoFi Bank, N.A., Member FDIC

APY

0.50%

With $0 min. balance for APY

Bonus

$300

Earn up to $300 with direct deposit. Terms apply.

Monthly fee

$0

Overdraft star rating

5.0/5

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 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.

NerdWallet rating 

4.5

/5
Ally Bank Spending Account
Learn more

at Ally Bank, Member FDIC

APY

0.10%

With $0 min. balance for APY

Bonus

N/A

Monthly fee

$0

Overdraft star rating

5.0/5

Why We Like It

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 deposits at least $250 for two months in a row, they qualify for up to $250 in 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.

NerdWallet rating 

4.5

/5
Chime Checking Account
Learn more

at Chime®, Deposits are FDIC Insured

APY

N/A

Bonus

N/A

Monthly fee

$0

Overdraft star rating

5.0/5

Why We Like It

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, and they are initially given a $20 overdraft limit that can eventually be increased to $200.

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."

NerdWallet rating 

4.0

/5
Self-Help Credit Union Personal Checking
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

Why We Like It

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 are a few things to consider with Self-Help Credit Union. To become a member, you can join for free if you live, work, worship or attend school in the credit union’s eligible counties based in Florida, North Carolina, South Carolina and Virginia. If you aren’t eligible that way, then you can pay a one-time $5 fee to join.

Note that there is also a $5 monthly service fee for Self-Help 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.

NerdWallet rating 

4.5

/5
Alliant Credit Union High-Rate Checking
Learn more

at Alliant Credit Union, Federally insured by NCUA

APY

0.25%

With $0 min. balance for APY

Bonus

N/A

Monthly fee

$0

Overdraft star rating

5.0/5

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 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.

NerdWallet rating 

4.5

/5
Navy Federal Credit Union Free EveryDay Checking
APY

0.01%

With $0 min. balance for APY

Bonus

N/A

Monthly fee

$0

Overdraft star rating

5.0/5

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.

Last updated on December 21, 2023

Methodology

We took a close look at over 90 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, Bank7, Barclays, Bask Bank, Bethpage Federal Credit Union, BMO, BMO Alto, Boeing Employees Credit Union, Bread Savings, BrioDirect, Capital One, Carver Federal Savings 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, Delta Community Credit Union, Discover Bank, E*TRADE, EverBank (formerly TIAA Bank), Fifth Third Bank, First Foundation, First National Bank, First Tech Federal Credit Union, Flagstar Bank, FNBO Direct, Global Credit Union, GO2bank, Golden 1 Credit Union, Greenwood, Hope Credit Union, Huntington Bank, Industrial Bank, Ivy Bank, KeyBank, Lake Michigan Credit Union, LendingClub Bank, Liberty Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Navy Federal Credit Union, NBKC, One, OneUnited Bank, Pentagon Federal Credit Union, PNC, 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 and Zynlo Bank.

To recap our selections...

NerdWallet's Best Banks for Overdrafts 2024