Best Checking Accounts That Waive or Reimburse Overdraft Fees

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In 2022, overdraft and non-sufficient fees reached a staggering combined $7.72 billion, according to the Consumer Financial Protection Bureau. Along with parking fines and extra shipping costs, bank overdraft fees sit right up there on the list of the most annoying and pricey things you pay for as an adult. If you’ve ever overdrawn your account, then you're among an overwhelming chorus of folks who know how much it stings when you're hit with an overdraft.

The good news? Banks are listening to your sobs and many have jumped on the no-overdraft bandwagon by offering no overdraft accounts. Here are our top picks for financial institutions that feature bank accounts with no overdraft fees.

Best Bank Accounts With No Overdraft Fees

Bank Account	Overdraft Policy	Learn More
SoFi Checking and Savings Open Account	Overdraft coverage up to $50 (Must set up direct deposit of at least $1,000)	Open Account
Axos Rewards Checking Account Open Account	No overdraft or non-sufficient funds fee	Open Account
Chime® Checking Account	No overdraft fees (Overdraft up to $200 on debit card purchases with SpotMe®)	This product is currently not available via Slickdeals. All information about this product was collected by Slickdeals and has not been reviewed by the issuer.
Quontic Bank High Interest Checking Open Account	No overdraft fees (Excludes overdrafts created by check, in-person or ATM withdrawal, or other electronic means)	Open Account

SoFi Checking and Savings

Open Account

at SoFi

• Our Rating 5/5 How our ratings work
• APY0.50% - 4.50% More Info

  Customers earn 4.50% APY on savings balances when they set up recurring monthly direct deposit of their paycheck or benefits provider via ACH deposit. Alternatively, deposit at least $5,000 each month to earn 4.50% APY on your savings balance. Checking balances earn 0.50% APY. See full terms and disclosures at sofi.com/banking. Direct Deposit Promotion begins on 12/7/2023 and will be available through 12/31/24. SoFi members with Direct Deposit can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.60% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.

• Minimum
  Deposit RequiredN/A
• Intro Bonus $50-$250Expires December 31, 2024 More Info

  New customers can earn a $250 bonus for opening a new SoFi Checking and Savings account and receiving a total of $5,000+ in qualifying direct deposits within the specified evaluation period; receive $1,000 - $4,999 in qualifying direct deposits to earn a $50 bonus.

SoFi Checking and Savings boasts an impressive 4.50% APY on savings balances for customers who set up direct deposit, or who deposit at least $5,000 each month. This account also offers 0.50% APY on checking balances. There are no monthly maintenance fees, and new customers can even earn a generous signup bonus worth up to $250. If you don’t care about physical bank locations, this is a great option.

• Overview
• Pros & Cons

Overview

SoFi Checking and Savings features remarkably strong interest rates for customers who receive recurring monthly direct deposit, or who deposit $5,000+ every 30 days. This account also doesn’t have any maintenance fees, overdraft fees or non-sufficient funds fees. To top it off, new customers can earn a signup bonus worth up to $250.

Pros

• Accounts with monthly direct deposit earn interest
• No minimum opening balance or minimum monthly balance
• No maintenance fees, non-sufficient fund fees or overdraft fees
• Access to Allpoint’s worldwide ATM network
• Get paid up to two days early

Cons

• No physical branch locations

Originally launched as a financial technology platform offering student loan refinancing to working professionals, SoFi has since expanded to offer checking and savings accounts with competitive APYs. If you set up direct deposit of at least $1,000, SoFi will cover up to $50 in overdraft charges.

• Overdraft fees: Covers up to $50 in overdraft fees  
• Perks: No monthly fees, competitive APYs, early direct deposit, welcome bonus offer
• Why we like it: Besides having no fees and no account balance minimums, Sofi offers regular sign-up bonuses.

Axos Rewards Checking Account

Open Account

at Axos

• Our Rating 5/5 How our ratings work
• APYUp to 3.30% More Info

  Earn up to 3.30% APY for completing qualifying activities.

• Minimum
  Deposit Required$50
• Intro Bonus Up to $300Expires December 31, 2023 More Info

  Use promo code SUNNYBONUS and apply by December 31st, to earn up to a $300 bonus!

Axos Bank Rewards Checking gives customers the chance to earn up to a 3.30% APY on their deposits with no monthly fees. These are all terrific features for a checking account, but Axos is digital-only, so if you deal with cash regularly it’s probably not the best fit for you.

• Overview
• Pros & Cons

Overview

While it takes a bit of work to unlock the maximum interest rate, Axos Rewards Checking customers can potentially earn an impressive 3.30% APY. This account also does not include any monthly fees.

Pros

• Strong APY compared to similar accounts
• No monthly maintenance fee or monthly minimum balance
• No overdraft or non-sufficient fund fees
• Unlimited domestic ATM fee reimbursements

Cons

• Minimum deposit required for account opening
• Several qualifying activities required to earn maximum interest
• No physical branch locations

Axos Bank is an online-only bank with a robust overdraft protection program. Currently, the Rewards Checking account offers no monthly account fees, higher-than-average interest rates and unlimited ATM fee reimbursements. Plus, customers can enjoy zero monthly balance minimums.

• Overdraft fees: None 
• Perks: Competitive APY, welcome bonus offer, no monthly fees, unlimited domestic ATM fee reimbursements
• Why we like it: No fees all-around, competitive interest rates, and it’s only $50 to open an account. If you choose Axos’ Essential Checking account, you can get paid up to two days early and benefit from overdraft protection.

Ally Spending Account

Ally Bank is a full-service digital bank that eliminated overdraft fees from all its accounts in 2021. Its interest-bearing checking account is especially beneficial because it boasts no overdraft or monthly maintenance fees, offers early direct deposit, and includes access to over 43,000 ATMs. They’ll even reimburse you $10 per statement for fees incurred at other ATMs nationwide.

• Overdraft fees: None 
• Perks: No monthly fees, early direct deposit, earn interests, $10 ATM fee reimbursement per statement cycle
• Why we like it: On top of fee-free overdraft protection, Ally's checking account also offers additional protections in the form of their Overdraft Transfer Service and CoverDraft, which provides up to a $250 cash advance for common transactions.

Betterment Checking

A pioneer in the robo-advisory space, Betterment also stands out for offering zero overdraft fees and no account minimums for its mobile-first checking account. Rather than approving a transaction that risks over-drafting, Betterment will alert you of insufficient funds and reverse the transaction. The company also offers cash-back rewards when you spend at its partner retailers.

• Overdraft fees: None
• Perks: No monthly fees, reimbursed ATM and foreign transaction fees, cash-back rewards
• Why we like it: Besides no overdraft fees, you’ll get reimbursed for your ATM and foreign transaction fees worldwide. You can also open a joint checking account and purchase paper checks.

Capital One 360 Checking® Account

While you may find one of its brick-and-mortar locations or cafes, Capital One is primarily considered a digital financial platform. The Capital One 360 Checking® Account features no overdraft fee, non-sufficient fund fees or maintenance fees. It also includes access to over 70,000 ATMs, the option to add cash to your account in popular retail stores and the ability to get paid up to two days early.

• Overdraft fees: None
• Perks: Early direct deposit, no monthly fees, big ATM network
• Why we like it: Choose from three fee-free options: auto-decline, free transfer and fee-free overdraft.

Chime Checking

Considered a "challenger financial platform," Chime is a financial technology company that provides online-only checking accounts with no monthly minimums, no monthly fees and great-to-have overdraft features like "SpotMe®," which offers up to a $200 fee-free advance. 

• Overdraft fees: None
• Perks: No monthly fees, early direct deposit
• Why we like it: Up to a $200 fee-free advance serves as overdraft protection for those who qualify for SpotMe®. You can also receive “boosts” from fellow Chime members to help bump your limit.

Discover Cashback Debit Account

In many ways, Discover's Checking account has been the best-kept secret in the world of fee-free banking. While Discover is more widely known for its credit cards, its online-only checking account features no monthly account fees, access to over 60,000 ATMs, fraud protection tools and the option to get paid up to two days early. If you overdraw your account, Discover will send you an alert, no fee included.

• Overdraft fees: None
• Perks: No monthly fees, earns cash back, early direct deposit
• Why we like it: Besides its overdraft protections and the low or no fees, the Discover Cashback Debit card features 1% cash back on up to $3,000 of purchases a month.

Quontic Bank High Interest Checking

Open Account

at Quontic

• Our Rating 5/5 How our ratings work
• APYUp to 1.10% More Info

  10 debit card point of sale transactions of $10 or more per statement cycle required to earn the maximum APY per account balance tier. If the qualifying activity requirement is NOT fulfilled, the interest rate paid on the entire balance will be 0.01% APY.

• Minimum
  Deposit Required$100
• Intro Bonus N/A

Quontic Bank's High Interest Checking Account offers one of the highest interest rates we’ve seen on a high-yield checking account. Plus, there are no monthly fees, no overdraft fees, and a robust national ATM network. So long as you can fulfill the qualifying debit card point of sale transaction requirement each statement cycle to earn the maximum APY, this account is an excellent option.

• Overview
• Pros & Cons

Overview

Offering a competitive APY, Quontic Bank’s High Interest Checking Account is an excellent option for those who want to earn interest on checking balances. Just be sure you can easily meet the requirements to earn maximum APY, or else your interest rate will drop significantly.

Pros

• High APY
• No monthly maintenance fees
• No overdraft fees
• Access to robust surcharge-free ATM network

Cons

• No physical bank locations
• Minimum opening deposit required
• Qualifying transactions required to earn maximum APY

Since its launch in 2009, Quontic is an online-only bank based out of Astoria, New York. Quontic offers checking, savings, and home loans in all 50 states. You only need $100 to open a Quontic checking account and you can earn a higher APY if you make at least 10 transactions of $10 or more.

• Overdraft fees: None
• Perks: No monthly fees, earns APY with qualifying transactions
• Why we like it: Easy-to-open checking accounts, no monthly fees, and access to over 90,000 ATMs across the U.S.

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Why Banks Charge Overdraft Fees

Banks charge overdraft fees when there's not enough money in your bank account to cover a purchase. When there's a shortfall, overdraft protection kicks in. Most banks will cover the shortfall, but they’ll also charge you an overdraft fee—usually around $35 per transaction, though the actual fee amount will depend on the bank. 

There is no federal limit to how many times you can overdraw your account, though most banks limit you to four to six per day.

Sadly, overdraft fees often penalize those who can least afford them, and they can add up quickly. Account holders that incur at least 10 overdraft fees a year pay for three-quarters of all fees. Further, they pay an average of $380 annually.

How to Get Your Overdraft Fee Waived or Refunded

Before you panic or resort to eating cheap ramen for the rest of the month, it’s possible to get your overdraft fee waived or refunded. Here's how:

• Contact customer service: Talk to a human from your bank. Explain the reason for the overdraft—maybe you were waiting on a delayed payment from a client, or your electricity bill was higher than usual. They may be able to refund all or some of the fee. 
• Ask to speak to a manager: Be persistent in your request. If the customer service rep can’t help you, politely ask to speak to their higher-up.
• Switch banks: If your bank isn't open to dropping your overdraft fees, consider switching to a bank that doesn't charge these fees in the first place. When choosing a bank, research the interest rates, fees, mobile app capabilities and how you’ll access your money (some banks are online-only).

Is Switching to a Bank With No Overdraft Fees Worth It?

There's much to consider when switching banks, but hopping over to a no-overdraft-fee bank can help you avoid costly account fees and keep more money in your account. You can use the extra cash to pay off debt, toss toward your savings goal, or stay on top of your bills.

But before you make the switch, make sure the bank is a good fit for your banking needs. Most importantly, you’ll want to choose a bank that offers continual access to your accounts. But you should also shop around for banks with high-yield savings rates, early direct deposit, and other perks and bonuses.

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Frequently Asked Questions

• How much are overdraft fees?

  Overdraft fees vary by bank, but they average $35 per transaction. Banks also limit how many overdraft fees you can get hit with on a given day.

• Are overdraft fees illegal now?

  It's not illegal to charge overdraft fees, but banks are required by law to disclose all of their fees and only charge "reasonable" fees with limits on how many times they can be charged. While charging overdraft fees is legal, more banks are dropping them.

• What happens if you can't pay your overdraft?

  It depends on the bank, but it might charge you additional fees or freeze your account if you can't pay your overdraft. In turn, you won't be able to access your money.

• Does overdrafting affect credit score?

  No, overdraft fees with your bank account don't negatively impact your credit score. However, try to tend to the matter promptly and pay those fees. If your overdraft fees go unpaid and enter collections, it can show up on your credit report and hurt your score.