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.
| Bank | Overdraft Limit | Protection Type | Fees |
|---|---|---|---|
| Ally Bank | Up to $250 | CoverDraft and transfers | None |
| Discover | Linked transfers | ACH, checks, bill pay only | None |
| Axos Bank | N/A | Linked savings protection | None |
| Fidelity | Based on funds | Brokerage-linked cash manager | None |
| Betterment | None | Declines insufficient transactions | None |
| Wealthfront | N/A | Automated sweep | None |
| Alliant Credit Union | Varies | Savings or line of credit | None |
| Capital One | N/A | Customized overdraft endings | None |
| Citi® | Varies | Varies by account | None |
| SoFi | $50 | Fee-free debit overdraft | None |
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.
Overdraft Fee FAQ
Here are more answers to frequently asked questions about banks with no overdraft fees.- Which bank has the best overdraft limit?
- Several banks have solid overdraft limits. Ally Bank has an overdraft limit of $250 with no additional fees. Chime®* also has a generous overdraft limit of $200 for those who qualify.
- Can I get overdraft fees waived?
- If you are charged an overdraft fee, contact your bank to see if they will waive it. If you're a longstanding customer or have multiple accounts, the bank may waive the fee. Be polite when making the request, and if the initial customer service representative cannot help, ask for a supervisor.
- How can I avoid overdraft charges altogether?
- You can avoid overdraft charges by doing the following:
- Receive account alerts for low balances.
- Monitor your accounts regularly.
- Opt out of overdraft protection so that any transactions that exceed your balance are declined.
- You can avoid overdraft charges by doing the following:
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 a feature automatically offered to SoFi Checking and Savings account holders who receive at least $1,000 or more in Eligible Direct Deposits within a rolling 31 calendar day period on a recurring basis. Eligible Direct Deposit is defined on the SoFi Bank Rate Sheet, available at https://www.sofi.com/legal/banking-rate-sheet. Members enrolled in Overdraft Coverage may be covered for up to $50 in negative balances on SoFi Bank debit card purchases only. Overdraft Coverage does not apply to P2P transfers, bill payments, checks, or other non-debit card transactions. Members with a prior history of unpaid negative balances are not eligible for Overdraft Coverage. Eligibility for Overdraft Coverage is determined by SoFi Bank in its sole discretion. Members can check their enrollment status, if eligible, at any time by logging into their account through the SoFi app or on the SoFi website.
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.