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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.
How we evaluate products
The companies on our list of best banks for overdraft protection may be current or past FinanceBuzz partners. We did not review all available banks or bank accounts in the market. We considered several key factors, including annual percentage yields, ATM access, account requirements, account rewards, ease of use, and monthly fees.
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 |
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Ally Bank Spending |
Overall overdraft coverage |
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SoFi Checking and Savings |
Linked checking and savings |
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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. <br></p> |
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Capital One 360 Checking |
Easy banking |
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Discover® Cashback Debit |
Cashback rewards |
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Connexus Credit Union Xtraordinary Checking |
Overdraft line of credit |
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Ally Bank Spending
- APY:0.10% (as of 09/03/25) on balances under $15,000; 0.25% on balances of at least $15,000
- Overdraft fee: $0
- Monthly service fee: $0
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.
- Provides access to over 75,000 fee-free ATMs nationwide
- No monthly fees or account minimums
- CoverDraft provides up to $250 in overdraft protection with a qualifying direct deposit
- Limit of 10 withdrawals from savings and money market accounts per statement cycle
- No physical branches
- Lower checking APY than with some other banks
Learn more in our Ally Bank review
SoFi Checking and Savings
- APY: 0.50% on checking and up to 3.80% on savings with direct deposit
- Overdraft fee: $0 with qualifying direct deposit6 <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. 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 > Savings > Current APY or (ii) Banking > Checking > Current APY. Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage.</p>
- Monthly service fee: $0
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. 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 > Savings > Current APY or (ii) Banking > Checking > Current APY. 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, "Segoe UI", Roboto, "Helvetica Neue", 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. 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 <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>
- No monthly fees or minimum balances
- Overdraft coverage up to $50
- More than 55,000 ATMs nationwide8 <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>
- Depositing cash may require a $4.95 fee through the Green Dot network
- Must set up a $1,000 monthly direct deposit to avoid overdraft fees
- Requires meeting specific criteria to earn the highest savings APY
Visit SoFi Checking and Savings | Learn more in our SoFi Checking and Savings review
Chime Checking
- APY: 0%
- Overdraft fee: $09 <p>SpotMe® on Credit is an optional, no interest / no fee overdraft line of credit tied to the Secured Deposit Account available to qualifying members with an active Chime Card Account. To qualify for the SpotMe on Chime Card service, you must receive $200 or more in qualifying direct deposits to your Chime® Checking Account each month and have activated your physical secured Chime Visa® Credit Card or Chime Visa® Debit Card.</p><br> <p>Qualifying members will be allowed to overdraw their Secured Deposit Account up to $20, 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 Chime Card Limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime’s or its banking partners’ discretion. Although Chime does not charge any overdraft fees for SpotMe on Chime Card, there may be out-of-network or third-party fees associated with ATM transactions and fees associated with OTC cash withdrawals. SpotMe on Chime Card won’t cover non-card transactions. <a href="https://www.chime.com/policies/" style="background-color: rgb(255, 255, 255);">SpotMe on Chime Card Terms and Conditions</a>.</p>
- Monthly service fee: $0
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. </p> .
- More than 47,000 fee-free ATMs across the country11 <p>Out-of-network ATM withdrawal and over the counter advance fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.</p>
- SpotMe overdraft line of credit allows up to $200 with a qualifying direct deposit
- High savings APY with a qualifying direct deposit
- No physical branches
- Your SpotMe available balance can vary based on several factors
- Depositing cash can be more difficult12 <p>Once the retailer accepts your cash, the funds will be transferred to your Chime account. Cash deposit fees may apply if using a retailer other than Walgreens and Duane Reade. </p>
Visit Chime | Learn more in our Chime review
Capital One 360 Checking
- APY: 0.10% (as of 09/15/25)
- Overdraft fee: $0
- Monthly service fee: $0
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 09/15/25) 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.
- No monthly maintenance fee
- Overdraft protection options and no overdraft fee
- Extensive fee-free ATM network nationwide
- Low 0.10% (as of 09/15/25) APY on checking
- May not have as many overdraft protection options as some banks
- Limited in-person branches
Learn more in our Capital One 360 review
Discover® Cashback Debit
- APY: 0%
- Overdraft fee: $0
- Monthly service fee: $0
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.
- Up to 1.00% cash back on up to $3,000 in debit card purchases each month
- Extensive fee-free network of over 60,000 ATMs
- No monthly maintenance or overdraft fees
- Only one physical location (located in Delaware)
- Doesn't pay interest on your checking balance
- $360 per year cap for cash back
Learn more in our Discover® Cashback Debit review
Connexus Credit Union Xtraordinary Checking
- APY: Up to 5.00% (as of 06/17/25) if you meet specific criteria
- Overdraft fee: $18 for Connexus-paid overdrafts; $4 for unpaid transactions
- Monthly service fee: $0
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.
- Offers three overdraft protection options
- High APY on checking balances under $25,000
- Free in-network ATMs and up to $15 in out-of-network ATM fees reimbursed per month
- Relatively high overdraft fees for the Privilege Pay program
- Limited physical branches
- 18% APR for the overdraft line of credit
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
How long will a bank let you overdraft?
The amount of time a bank allows you to overdraft depends on its specific policies. Some banks give you only 24 hours to correct an overdraft, while others may give you several days. Some banks offer a grace period, allowing you until the next business day to complete a transfer and bring your account balance to a positive number. After the grace period, you may pay a fee.
Which bank offers the most generous overdraft protection?
Many financial institutions offer generous overdraft protection. Ally Bank, for example, offers no fees on overdrafts, and eligible customers can receive up to $250 in temporary overdraft protection. Capital One doesn't charge fees for overdraft protection and allows you to link your checking and savings accounts to cover overdrafts.
Is overdraft protection worth it?
If you occasionally overdraft your account, overdraft protection can be a worthwhile option. However, if you frequently overdraft, review your spending and consider areas where you can reduce your expenses to avoid this issue.
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.
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