Best Banks for Overdraft Protection [2025]: The Top Picks To Help You Avoid Fees

When you're trying to stretch every dollar, an unexpected overdraft fee can make your stomach sink, especially if it's for a forgotten bill or subscription charge. Many banks offer some kind of overdraft protection to help you prevent your account from being overdrawn. However, specific overdraft protection features vary by bank, so it's essential to review each program.

As we researched the best banks for overdraft protection, we scrutinized their overdraft protection features, of course, but also paid attention to annual percentage yields (APYs), other types of fees, minimum balance or deposit requirements, and ease of use.

We found that many banks offer no overdraft fees on accounts. However, some banks, such as Capital One 360 and Discover, either automatically link your checking and savings accounts or allow you to manually connect them to avoid overdrafts.

Others, like Connexus, Chime®, SoFi®, and Ally, take it a step further and provide temporary overdraft coverage, often in the form of a line of credit. However, you usually have to apply and qualify for these programs.

What to look for in bank overdraft protection

Overdraft protection is a service that some financial institutions offer. It allows transactions to go through, even if you don't have enough money in the account to cover the purchase.

If you don't have overdraft protection, you risk having your transaction denied or overdrawing your account, which could result in fees for insufficient funds or returned checks, among others.

The specifics of overdraft protection vary by bank. Some banks allow you to link your checking account to a savings account. Others offer overdraft lines of credit or just won't charge a fee, depending on the bank's policies and the specific situation.

To help you avoid the extra fees or interest charges that sometimes come with overdraft protection, make sure you read the terms associated with your bank's specific program. Review the account disclosures and fee schedules, and examine each bank's particular rules, limits, and fees before signing up.

Bank account	Best for …	Features
Ally Bank Spending	Overall overdraft coverage	0.10% (as of 09/03/25) on checking balance under $15,000 and 0.25% on checking balance of at least $15,000 CoverDraft offers up to $250 in overdraft protection with a qualifying direct deposit No monthly fees or overdraft fees
SoFi Checking and Savings	Linked checking and savings	Automatically opens a savings account with your checking account 0.50% APY on your checking balance and up to a 3.80% APY1 <p>SoFi members who enroll in SoFi Plus with Eligible Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or SoFi members with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% 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 1/24/25. There is no minimum balance requirement. If you have satisfied Eligible Direct Deposit requirements for our highest APY but do not see 3.80% APY on your APY Details page the day after your Eligible Direct Deposit arrives, please contact us at 855-456-7634. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a>. See the SoFi Plus Terms and Conditions at <a href="https://www.sofi.com/terms-of-use/#plus">https://www.sofi.com/terms-of-use/#plus</a>.</p> on your savings balance with direct deposit No monthly fees or overdraft fees2 <p>We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a></p>
Chime Checking	Non-bank overdraft protection3 <p class="">Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank, N.A. or Stride Bank, N.A.; Members FDIC.&nbsp;<br></p>	No APY on checking balances SpotMe line of credit offers up to $200 in overdraft protection4 <p>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. <a href="https://www.chime.com/policies/">SpotMe on Debit Terms and Conditions</a>.</p> No monthly fees or overdraft fees
Capital One 360 Checking	Easy banking	0.10% (as of 08/27/25) APY on all checking balances No overdraft fees No monthly maintenance fees
Discover® Cashback Debit	Cashback rewards	1.00% cash back on up to $3,000 of eligible debit card purchases per month5 <p>Earn 1% cash back on up to $3,000 in debit card purchases each month. See Deposit Account Agreement for details on transaction eligibility, limitations and terms. Deposit Account Agreement can be found at <a href="https://www.discover.com/content/dam/dfs/online-banking/documents/NationalDepositAccountAgreement.pdf">https://www.discover.com/content/dam/dfs/online-banking/documents/NationalDepositAccountAgreement.pdf</a>.</p> No monthly fees or overdraft fees Extensive network of 60,000+ ATM locations
Connexus Credit Union Xtraordinary Checking	Overdraft line of credit	Up to a 5.00% (as of 06/17/25) APY when you meet all criteria Offers an overdraft line of credit between $300 and $1,000 No monthly fees, but charges overdraft fees

Ally Bank Spending

Ally is an online-only bank offering multiple account options, including its Spending checking account. It has no monthly maintenance or overdraft fees, and there are two overdraft protection options.

The first involves linking your Ally savings or money market account to your Spending account. If you accidentally overdraw your Spending account, Ally will transfer available funds (to the nearest $100) from the linked account. However, if you choose this method, it counts against the 10 allowed withdrawals per statement cycle from your money market or savings account.

The second option is CoverDraft, which gives you up to $250 in fee-free overdraft coverage. You can qualify for $100 in CoverDraft coverage 30 days after depositing at least $100 into your Ally account. If you set up a direct deposit of $250 or more for two consecutive months, you may qualify for up to $250 in coverage. If you use the CoverDraft service, you'll have 14 days to settle your account balance, or Ally may restrict future withdrawals.

Learn more in our Ally Bank review

SoFi Checking and Savings

SoFi consistently ranks among the best checking accounts. I like the SoFi checking account because it earns a 0.50% APY with direct deposit, and when you open your checking account, the bank automatically opens a savings account in your name, which earns up to a 3.80% APY with direct deposit. SoFi also doesn't require a credit check.

SoFi's overdraft coverage offers up to $50 in protection if your account balance goes below $0.⁶ <p>Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with Eligible Direct Deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A.&nbsp; The 30-Day Evaluation Period refers to the "Start Date" and "End Date" set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the "30-Day Evaluation Period"). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking &gt; Savings &gt; Current APY or (ii) Banking &gt; Checking &gt; Current APY.&nbsp; Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage.</p> SoFi will withdraw the overdrawn amount from your next deposit. However, to avoid an overdraft fee, you'll need to receive a monthly direct deposit of at least $1,000. You'll also need to meet specific criteria to receive the highest APY on your savings balance.

SoFi is FDIC insured.⁷ <p><b style="font-family: Rubik, -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, &quot;Helvetica Neue&quot;, Arial, sans-serif;">SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations.&nbsp;Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at&nbsp;<a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>.</b></p>

Visit SoFi Checking and Savings | Learn more in our SoFi Checking and Savings review

Chime Checking

I like Chime because it's a financial technology company, not a bank, but it has many of the features of more traditional online banks and credit unions. Chime offers free mobile banking and doesn't charge monthly maintenance, overdraft, or minimum balance fees.

While its checking account doesn't earn an APY, it comes with no monthly fees, including for overdrafts. Chime's overdraft protection is called SpotMe and is a no-interest line of credit. Users who qualify can start with a $20 line of overdraft credit, which may grow to $200 as long as they have a monthly direct deposit of at least $200. However, your SpotMe balance can change based on several factors, like spending activity and potential risk.

As a checking customer, you can also open a high-yield savings account through Chime. If you have a qualified direct deposit, this account earns an APY that puts it in line with many of the best savings accounts. If you don't have a qualified direct deposit, you earn 1.25%¹⁰ <p class="">The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is accurate as of 5/22/25. No minimum balance required. Must have $0.01 in savings to earn interest.&nbsp;</p> .

Visit Chime | Learn more in our Chime review

Capital One 360 Checking

I like the Capital One 360 Checking account and its partner savings accounts because they're easy bank accounts to open and use. The 360 Checking account pays a 0.10% (as of 08/27/25) APY on all balances, and it doesn't require a minimum deposit or a monthly balance. It also includes access to over 70,000 fee-free ATMs nationwide.

One of my favorite features of the 360 Checking account is that it doesn't charge overdraft fees and offers options to help you cover an overdraft. You can choose to decline any transactions that overdraw your account automatically. Alternatively, you can set up fee-free transfers between your checking account and your Capital One savings or money market account to cover the overdraft.

Regardless, Capital One won't charge a fee. However, you need to correct the overdraft as soon as possible to avoid the risk of future transactions being denied.

Learn more in our Capital One 360 review

Discover^® Cashback Debit

Discover is best known as a credit card company, but it also offers a range of banking products, including no-fee checking. The free checking account comes with the Cashback Debit program, where users earn 1.00% cash back on up to $3,000 in monthly debit purchases, totaling $360 per year.

Discover^® Cashback Debit doesn't earn interest, but it does offer free overdraft protection. If your account balance goes below $0, the bank will transfer funds from your Discover savings or money market account to your checking account to cover the balance.

Discover will only cover checks you write, online bill payments, or ACH payments originating from other banks. Other activities, like debit card transactions or wire transfers, don't qualify.

Learn more in our Discover^® Cashback Debit review

Connexus Credit Union Xtraordinary Checking

The Connexus Xtraordinary Checking account offers an up to 5.00% (as of 06/17/25) APY on balances up to $25,000 with no fees if you meet all the account criteria, such as spending $500 on your debit card each month and opting into eStatements. Any balance over $25,000 will earn 0.25%.

I like Connexus because of its high APY and the fact that it offers three overdraft protection options.

The first option is the Privilege Pay program, which is included with every checking and money market account. With this program, Connexus will cover an overdraft, though it charges a $18 fee. It charges $4 if the transaction is returned unpaid. Fees are limited to a combined total of two per day, per account. Overdrafts under $10 don't incur a fee, and overdrawn balances are due within 30 days.

You can opt out of Privilege Pay and link your savings account directly to your checking account instead. If you overdraft, Connexus will transfer funds from your savings account to your checking account for free.

In addition, Connexus will allow you to open an overdraft line of credit between $300 and $1,000. You'll pay an 18% annual percentage rate (APR) on any balance, and you'll have to apply and be approved.

Best practices for using overdraft protection

Using overdraft protection can be a helpful tool in your financial safety net, but it's essential to use it wisely. To avoid overdraft fees and other problems, consider the following before you sign up for your bank's overdraft program:

• Understand the terms and fine print of protection.
• Monitor your account balance to avoid overdrafts in the first place.
• Keep some extra money in your account.
• Use low-balance or overdraft account alerts to let you know right away when there's a problem.
• Understand if you're using a line of credit to cover overdrafts, and if so, how much interest you'll pay on balances.
• Opt in to your bank's available overdraft protection options.
• Correct overdrafts as quickly as possible.
• Monitor your bank statements to understand your spending habits better and reduce your reliance on overdraft protection.

FAQs

Bottom line

Learning how overdraft fees work and the potential options banks provide can help you make the most of your money. Pay attention to whether a checking account earns an APY and if it charges monthly maintenance or minimum balance fees. It's also essential to note branch or ATM locations and where you can deposit cash and use your account debit card to withdraw funds without incurring fees.

In addition to considering the options discussed here, check out our list of the best banks.

Learn More

5.0

FinanceBuzz writers and editors score products and companies on a number of objective features as well as our expert editorial assessment. Our partners do not influence our ratings.

2025 award winner Best Checking and Savings Combo

High APY of up to 3.80%¹ <p>SoFi members who enroll in SoFi Plus with Eligible Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or SoFi members with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% 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 1/24/25. There is no minimum balance requirement. If you have satisfied Eligible Direct Deposit requirements for our highest APY but do not see 3.80% APY on your APY Details page the day after your Eligible Direct Deposit arrives, please contact us at 855-456-7634. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a>. See the SoFi Plus Terms and Conditions at <a href="https://www.sofi.com/terms-of-use/#plus">https://www.sofi.com/terms-of-use/#plus</a>.</p> with direct deposit

Paycheck access up to 2 days early¹³ <p>Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.</p>

No monthly maintenance or overdraft fees² <p>We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a></p>

Streamlined savings and savings goals with Vaults

Access to a large ATM network⁸ <p>We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.</p>

SoFi is a member FDIC⁷ <p><b style="font-family: Rubik, -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, &quot;Helvetica Neue&quot;, Arial, sans-serif;">SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations.&nbsp;Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at&nbsp;<a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>.</b></p>