No Overdraft Fee Checking Account: Top Picks and Alternatives

If you're tired of paying hefty overdraft fees, you're in luck. Many banks now offer no overdraft fee checking accounts that can save you money.

Some top picks include Ally Bank's Interest Checking account, which doesn't charge overdraft fees. It also offers a 0.1% APY and requires a minimum opening deposit of $1,000.

Other options include Discover Bank's Cashback Debit account and Capital One 360 Checking account. Both accounts have no overdraft fees and offer rewards programs.

If you're looking for alternative options, consider online banks like Axos Bank and Chime Bank. They also offer no overdraft fee checking accounts, but may have different requirements or features.

Axos Bank Rewards Checking is a great option for those who want to avoid monthly fees and overdraft fees. There are no minimum balance requirements or initial deposit requirements.

With Axos Bank Rewards Checking, you can earn up to 3.30% APY if you meet specific requirements, such as receiving monthly direct deposits totaling $1,500 or more.

Betterment Checking is another online-only account that has no overdraft fees or account minimum requirements. You can also earn automatic cash back rewards when you spend on popular brands.

Betterment will reimburse all your out-of-network ATM fees worldwide, including foreign transaction fees. This can be a huge perk for frequent travelers or those who like to shop online.

The Alliant Credit Union High-Rate Checking has no monthly service fee, minimum balance requirement, or overdraft fees. You can also access over 80,000 free ATMs nationwide.

This account offers a higher-than-average 0.25% APY on all balances, making it a great option for those who want to earn interest on their checking account.

Betterment Checking eliminates overdraft fees and account minimum requirements, making it a great option for those who want to avoid these fees.

If you're looking for a checking account with no minimum balance requirements, Betterment Checking is a good choice.

The Alliant Credit Union High-Rate Checking account also has no overdraft fees, making it a great alternative to traditional checking accounts.

You can access over 80,000 free ATMs nationwide with the Alliant Credit Union High-Rate Checking account.

Ally Bank eliminated overdraft fees in 2020 and made the change permanent, so you don't have to worry about these fees.

If you do accidentally overdraft your account, Ally Bank's CoverDraft service provides a safety net of up to $250 for qualified customers.

Wealthfront Cash Account also offers no overdraft fees, giving you peace of mind when managing your finances.

With Wealthfront Cash Account, you can earn 4.50% APY on all account balances and get access to 19,000 free ATMs.

BECU (Boeing Employees Credit Union) reduced its overdraft fees to $10 from $25 in October 2022, and it also did away with NSF fees for items returned or rejected due to an insufficient available balance.

Regions Bank eliminated NSF fees and capped its $36 overdraft fee at three instances per day. The bank also no longer charges an overdraft protection fee when funds are transferred automatically between linked accounts to cover overdrafts.

Santander Bank increased its no-fee overdraft threshold to $100 in 2021, so that accounts overdrawn by less than that amount won’t incur fees. The bank made additional changes to its overdraft fee structure, including reducing the number of $35 fees that could be charged each day for covered overdrafts and returned items.

Truist Bank now offers two personal checking accounts that don’t charge overdraft fees, including the Truist One account, which provides qualifying customers with a $100 negative balance buffer.

The Overdraft Protection Act of 2021 was introduced to limit overdraft fees, but it stalled in Congress after its sponsor, former Rep. Carolyn Maloney, was defeated in her bid for reelection.

In July 2022, the House Finance Committee passed the act, which aimed to limit the dollar amount banks can charge per overdraft fee and the frequency with which the fees could be charged.

President Joe Biden has spoken out against overdraft fees, calling for a ban on "junk fees" in his State of the Union address in February 2022.

Critics of such legislation argue that consumers who overdraw their accounts are hurt more by having transactions declined than by overdrafting and paying the resulting fee.

Todd Zywicki, a law professor at George Mason University, questioned whether regulatory intervention might ultimately harm consumers, especially those who are more vulnerable.

If a law were in place to eliminate or curb overdraft fees, those who overdraw their accounts might end up having to rely more on payday lenders and other alternative financial providers.

If you're charged an overdraft fee, you may be able to get it waived by contacting your financial institution's customer service department and asking if they'll waive it, especially if you don't have a history of negative transactions.

Some institutions have once-a-year fee forgiveness programs for customers in good standing, so it's worth asking about these policies.

If you have an electronic deposit scheduled for your account that would have covered the overdrawn transaction, some providers will consider waiving the fee if the deposit arrives soon enough, usually by the next morning.

You can also consider shopping around for a bank with no overdraft fee, as this can help you avoid these steep fees altogether.

Here are some methods for safeguarding your account against overdrafting:

Overdraft policies vary among banks, but some institutions offer grace periods before charging a fee.