Overdraft Fees: Compare What Banks Charge - NerdWallet (2024)

Alliant Credit Union doesn’t charge overdraft fees. Customers can opt in to a free overdraft protection transfer service to cover unexpected overdrafts. Alliant’s Courtesy Pay service — where Alliant pays to cover transactions that extend beyond a customer’s overdraft protection — is available to customers who have been credit union members for at least six months and have transferred at least $600 into their accounts each month.

Ally Bank doesn’t charge overdraft fees, but customers can opt in to two overdraft protection services: free overdraft protection transfers from a linked Ally savings or money market account or up to $250 of coverage with the bank’s CoverDraft program. If a customer uses their CoverDraft, they have 14 days to replenish their account funds.

American Express National Bank rejects any transaction that would result in a negative balance. Though this helps you avoid fees, you may want to look into a more flexible overdraft program if you’re concerned about needing to be able to overdraft.

Axos Bank typically rejects any transaction that would result in an overdraft. If a customer is enrolled in overdraft protection, however, then they can link a money market account or savings account and make a free overdraft protection transfer or they can open a line of credit.

Capital One 360 offers free overdraft protection transfers from a linked Capital One 360 savings account or money market account, and the bank might decide to not charge an overdraft fee for a check payment, electronic payment or recurring debit card transaction that results in an overdraft. If you don’t opt in to these services, your transactions will be declined by the bank.

This investment brokerage’s checking account doesn’t have fees for overdraft protection services. When you overdraft with your debit card, Charles Schwab Bank automatically pulls money from your linked Schwab One brokerage account or your Schwab savings account for free.

Chime, a financial technology company, offers a program called SpotMe®. Eligible customers who meet the requirements can overdraft up to $200 with no fee. Transactions that would overdraw the account by more than $200, or overdraft transactions by ineligible members, are generally declined. There are no overdraft or nonsufficient funds fees.

Chime says: "Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date."

"SpotMe® on Debit is an optional, no fee overdraft service attached to your Chime Checking Account. To qualify for the SpotMe on Debit service, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account each month and have activated your physical Chime Visa® Debit Card or secured Chime Credit Builder Visa® Credit Card.

Qualifying members will be allowed to overdraw their Chime Checking Account for up to $20 on debit card purchases and cash withdrawals initially but may later be eligible for a higher limit of up to $200 or more based on Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Debit limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime's sole discretion. Although Chime does not charge any overdraft fees for SpotMe on Debit, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe on Debit will not cover any non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. SpotMe on Debit Terms and Conditions: https://www.chime.com/policies."

Current doesn’t allow overdrafts unless you qualify for and opt in to Current’s Overdrive program. You become eligible when you direct deposit $500 or more per month, and once you opt in to it, you are given a dollar limit that you can overdraft without a fee. The limit begins at $25 and goes up to $200.

With Discover Bank, you can link a qualifying Discover® savings or money market account for free transfers if you don’t have enough cash in your checking account. Otherwise, the bank will decline the transaction that would cause a negative balance, at no charge to you.

HSBC Bank doesn’t allow transactions that would result in a negative balance. If you want the flexibility of being able to overdraft, you may want to look at other banking options.

One customers who make at least $500 in eligible direct deposits per month can overdraft up to $200 fee-free.

Self-Help Credit Union has no overdraft fees, but customers can also opt in to a free overdraft protection transfer service from a linked account, or they can see whether they qualify for an overdraft line of credit.

SoFi charges no overdraft fees, but customers can also opt in to two overdraft protections options: free overdraft protection transfers from your linked SoFi Savings account or a free buffer, called Overdraft Coverage, where SoFi allows you to overdraft up to $50 as long as you make monthly direct deposits of $1,000 or more.

The online financial institution TIAA Bank has a free overdraft protection transfer service from a linked account. TIAA also doesn’t charge any overdraft or nonsufficient funds fee and typically will decline a transaction that would overdraft an account.

Truist Bank has no overdraft fees or related overdraft fees, including continuous negative balance fees, returned item fees or overdraft protection transfer fees. Truist’s Negative Balance Buffer allows customers to overdraw their account up to $100 as long as they meet these initial qualifications: Their account must be open at least 35 days, it must have a positive balance, and a direct deposit of at least $100 must be made for two consecutive months. To maintain eligibility, a customer must make a recurring direct deposit of at least $100 per month.

For U.S. Bank’s Safe Debit account, the bank doesn’t allow transactions that would result in an overdraft. In the event that a transaction does go through, there isn’t a fee.

The U.S. Bank Smartly Checking account allows customers to overdraft up to $50 with no overdraft protection transfer fee and a waived overdraft fee. If you overdraft more than $50, then you’ll be charged $36 up to four times per day.

Varo Bank doesn’t charge overdraft fees, and it declines transactions that would result in a negative balance. Varo has an overdraft protection service called Varo Advance that offers an overdraft buffer.