6 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 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.

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

Note that Chime is not a bank; it is financial technology company, also called a neobank, that partners with a regular bank 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

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.

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. 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.