Best Banks With No Overdraft Fees for 2025

Kerkez / Getty Images/iStockphoto

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

Overdraft fees are expensive and avoidable. The average overdraft fee in 2025 costs $35. Banks, according to a 2023 report, make $5.8 billion in profit from consumers exceeding their balance limits. Here are 10 banks with no overdraft fees: 

10 Best Banks With No Overdraft Fees

Ally Bank

• Eliminated overdraft fees in 2021
• Overdraft limit of up to $250 is available
• CoverDraft and Overdraft Transfer Service available
• Best for: Users who want flexible overdraft coverage with no fees.

Discover® Bank, Member FDIC

• Auto transfers from linked Discover accounts
• Overdraft protection covers checks, online bill payments and ACH transfers initiated at another bank 
• Receive an alert when a transaction will overdraw your account 
• Best for: Discover customers who want seamless internal transfers.

Axos Bank

• No overdraft fees across select checking accounts
• Linked account transfer protection
• Axos offers an optional overdraft line of credit 
• Best for. Online banking fans who want account variety.

Fidelity

• Cash Manager automatically moves funds from linked brokerage accounts
• Requires a Fidelity brokerage account
• Cash Manager will not use stocks, bonds or mutual funds to cover overdraft
• Best for. Fidelity investors who want ATM and no-fee perks.

 Betterment

• Reverses insufficient-funds transactions, and no fee is applied.
• No interest, but no overdraft allowed
• Never have to worry about your account dipping under $0
• Best for. Users who want to avoid accidental overdrafts completely.

Wealthfront

• APY on Cash Account
• Automated overdraft avoidance via savings sweep
• Can increase or decrease maximum balances 
• Best for. Savers who want high-yield savings and automation.

Alliant Credit Union

• No overdraft fee charged
• No non-sufficient funds fees
• Optional overdraft protection and line of credit
• Best for. Credit union members who want layered overdraft safety.

Capital One

• Multiple overdraft settings: decline, auto-transfer, or allow
• No overdraft fees
• Customers enrolled in the Next Day Grace overdraft program automatically enrolled to No-Fee Overdraft protection 
• Best for. Flexible overdraft handling with no penalties

Citi®

• Removed overdraft and NSF fees in 2022
• Protection varies by account type
• Overdraft protection is available on savings and money market accounts 
• Best for. Big bank users who want transparent overdraft terms.

SoFi®

• $50 fee-free overdraft coverage with direct deposit
• Not covered by overdraft: ATM withdrawals, ACH transfers, peer-to-peer payments, checks and bill payments
• High-yield savings account included
• Best for. Budgeters who want built-in tools and bonuses.

Quick Comparison Table: No Overdraft Fee Accounts

Here’s how the banks compare in terms of overdraft limits, protection types and fees. 

How To Avoid Overdrafts and Still Bank With Confidence

The goal is to avoid overdrafts. Here are six tips so you can still move forward with your transactions, without worrying about fees: 

• Balance alerts: Enable alerts through your bank’s mobile app when the balance is low.
• Direct deposit: Use direct deposit to access your paycheck more quickly. 
• Disable debit card overdraft: Turn off debit card overdraft for everyday purchases.
• Strategic scheduling of bills: Schedule bill payments around your pay cycle.
• Link accounts: Link a savings account, checking account or line of credit as a safety net.
• Fee reversal: Consider banks that reverse or alert you on insufficient funds.

Final Thoughts

Choosing a bank with no overdraft fees is one of the easiest ways to protect your money. But don’t stop at overdrafts — also look at ATM fees, monthly charges and savings rates before you switch. The best bank for you is one that supports your financial habits, not penalizes them.

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of May 13, 2025.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with 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.

SoFi has partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.

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/

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

All information about Discover® Cashback Debit has been collected independently by GoBankingRates. Discover® Cashback Debit is no longer available through GoBankingRates.

Share This Article: