3 Banks With No Overdraft Fees Listed (+ Free Overdraft Protection Options)

Banks earn revenue from levying fees, and overdraft fees for checking account holders can be particularly steep. However, it is possible to avoid overdraft fees. The bank may have no overdraft fees; it may also decline charges to help you avoid overdrafts or set up automatic transfers from another account to cover them.

Of all of the banks we contacted, only three online banks allow overdraft transactions without charging fees. Below, we list the banks that either don’t charge overdraft fees or provide alternative ways to guard against them.

The List

The following banks allow overdraft transactions and do not charge overdraft fees. We gathered this information by viewing policy documentation on their websites and contacting their customer service departments. Our list starts with the best option based on overdraft availability.

1. Chime Spending Account

  • Overdraft transaction limit: $20 to start; the limit can increase up to $100[1]
  • No-fee overdraft requirements: Must receive monthly direct deposits totaling at least $500[1]
  • Returned item fees: None[2]
  • Monthly maintenance fee: None[2]
  • ATM fees: $0 for MoneyPass and Visa Alliance Plus ATMs; $2.50 for out-of-network ATMs[2]
  • Apply

2. Simple Online Checking

Note: Simple often declines overdraft transactions, but when it allows them, it does not charge a fee.[3]

  • Overdraft transaction limit: None[3]
  • No-fee overdraft requirements: Must bring account current as quickly as possible after overdrafting[3]
  • Returned item fees: None[4]
  • Monthly maintenance fee: None[4]
  • ATM fees: $0 for both in-network and out-of-network ATMs[4]
  • Apply

3. Varo Checking Account

Note: Varo usually declines overdrafts, but doesn’t charge a fee when it allows them.[5]

  • Overdraft transaction limit: $50[5]
  • No-fee overdraft requirements: Must have $1,000 in direct deposits or make five qualifying debit card transactions within a month[5]
  • Returned item fees: None[6]
  • Monthly maintenance fee: None[6]
  • ATM fees: $0 for in-network ATMs; $2.50 for any transaction at an out-of-network ATM[6]
  • Apply

To find out more about overdrafts, see our related article about how many times you can overdraft your account.

Banks With Fee-Free Overdraft Protection

No-Fee Transfers

Some checking accounts charge overdraft fees but allow you to link another account or line of credit and automatically transfer money to cover the overdraft without charging an overdraft fee. The following accounts provide this service:

  • Ally Interest Checking
  • Capital One 360 Checking
  • USAA Cashback Rewards Checking
  • USAA Classic Checking

Automatic Overdraft Declines

Most banks that advertise “no overdraft fees” limit your ability to make charges and transfer money. They do not allow you to order or write paper checks, and their debit cards function more like prepaid cards. If you try to make a purchase or transfer money when you don’t have enough in your account to cover it, you won’t pay a fee — but your transaction will automatically decline. The following accounts offer this type of overdraft protection:

  • Axos Essential Checking
  • Axos Rewards Checking
  • Bank of America Advantage SafeBalance
  • Citi Access
  • Discover Cashback Debit
  • KeyBank Hassle-Free Account
  • U.S. Bank Safe Debit Account
  • Varo Checking Account