Paying bills is hard enough, so the last thing you need is to be hit with an overdraft fee when you’ve spent your last cent.
Many banks and other financial institutions charge an overdraft fee if you make a payment without having enough cash in your account to cover it.
Fortunately, not all financial institutions levy these charges. If you’re looking for a way to keep more cash in your wallet, consider a checking account from one of these 11 companies that eliminate overdraft fees altogether.
Resolve $10,000 or more of your debt
Credit card debt is suffocating. It constantly weighs on your mind and controls every choice you make. You can end up emotionally and even physically drained from it. And even though you make regular payments, it feels like you can never make any progress because of the interest.
National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.
How to get National Debt Relief to help you resolve your debt: Sign up for a free debt assessment here. (Do not skip this step!) By signing up for a free assessment, National Debt Relief can assist you in settling your debt, but only if you schedule the assessment.
SoFi is an FDIC-insured online bank and lender that offers high-yield checking and savings accounts. A SoFi checking account helps to boost your bank account by waiving overdraft fees.
A few conditions apply. For instance, overdrafts are only fee-free if you overdraw your account by $50 or less. You also need to directly deposit at least $1,000 a month to qualify for the waived fee.
Chime is a fintech (financial technology) company that offers fee-free online checking accounts.
With Chime’s SpotMe tool, you can overdraw your account by up to $200 on debit card purchases and cash withdrawals without penalty as long as you’re signed up for automatic direct deposit.
You must deposit at least $200 a month into your Chime checking account to qualify.
Capital One sets up several safeguards in its 360 Checking account that keep its customers from dealing with overdrawn accounts and overdraft fees.
For one thing, Capital One typically declines purchases that would overdraw your checking account balance. Capital One also lets you set up an automatic fee-free transfer from a money market or savings account to cover you if you accidentally overdraw your checking account.
Finally, if all other safeguards fail, Capital One still won’t charge you an overdraft fee — period. Customers can also choose their overdraft options, such as declining purchases or setting up automatic transfers.
Don't let home repairs drain your bank account
Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more. Not being able to make repairs could leave you in a bad situation — but a home warranty could protect you against surprise expenses.
Whether you’re a brand-new homeowner or you’ve owned your home for years, a plan from Choice Home Warranty could pick up the slack where homeowner’s insurance falls short.
If a covered system in your home breaks down, you can call their hotline 24/7 for assistance to get it repaired. They have a network of over 15,000 technicians that can assist you, making sure any issue can be taken care of swiftly — without breaking the bank.
Not sure if it’s for you? Rest easy: they were named one of the "Best Home Warranty Companies" by US News 360 Reviews and were awarded Best Company's 2020 Consumer's Choice Award. For a limited time, you can get your first month free when you sign up for a Single Payment home warranty plan.
Ally is an online FDIC-insured bank. Its high-yield checking and savings accounts ensure you generate interest on your balance. And if your checking account balance accidentally drops below zero, you won’t be penalized.
On top of eliminating overdraft fees a couple of years ago, Ally now gives customers several options for dealing with overdrawn accounts.
For instance, if you link a money market or savings account to your Ally checking account, Ally will move cash for you automatically — rounded up to the nearest $100 — to cover the transaction.
A Chase Secure checking account comes with a monthly maintenance fee of $4.95, so it isn’t exactly a fee-free financial solution. Still, Chase helps you avoid overdraft fees by declining purchases that exceed your checking account balance.
You can still end up with a negative account balance. For instance, this might happen if tips or service fees push your purchase higher than you intended after you were approved for the original transaction.
Chase still won’t charge an overdraft fee in such a situation.
Truist One Checking doesn’t charge any overdraft fees, and its $100 Negative Balance Buffer can give your account an extra cushion of up to $100 for unexpected charges.
The Truist One Checking account isn’t fee-free, but there are five ways to waive the $12 monthly maintenance fee.
Discover’s fee-free online checking account lets you earn up to 1% back on up to $3,000 worth of debit card purchases each month.
Discover does not impose maintenance fees or any charges for insufficient funds. It also offers an overdraft protection service that allows you to link two of your accounts so money is automatically transferred to your checking account to cover the overdrawn amount.
Citi checking accounts do not have overdraft fees or returned-item fees.
While the basic checking account does have a maintenance fee of $5 a month, you can get it waived by depositing at least $250 a month via automatic direct deposit.
Axos Bank’s Essential Checking account is a fee-free, basic checking account that does not charge overdraft, insufficient funds, or monthly maintenance fees.
The account doesn’t have a monthly balance requirement either, and Axos doesn’t limit its ATM fee reimbursements for ATMs within the U.S.
Alliant Credit Union
Online banks, fintechs, and traditional banks don’t have a monopoly on fee-free checking: Alliant Credit Union also has opted out of charging overdraft fees.
Customers can choose Alliant’s overdraft protection service, which will automatically transfer funds from a linked account to cover negative account balances.
Plus, a Courtesy Pay feature is available to customers that will cover checks, electronic payments and transfers that won’t clear because you don’t have enough funds in your account.
Betterment is an online financial service that offers an app-based checking account and linked Visa debit card access. The company doesn’t charge a fee for overdrawn accounts, and it will reimburse you for foreign transaction fees and ATM fees as well.
However, it’s worth noting that Betterment doesn’t charge overdraft fees because it doesn’t allow overdrawn purchases to go through.
While this means you don’t have the same account cushion you can qualify for at other banks, it also means you aren’t at risk of accidentally making a purchase you can’t afford. And that can help you stop wasting money unnecessarily.
Opening a checking account at a financial institution that doesn’t charge overdraft fees helps you to keep as much of your hard-earned cash as possible.
Finding such a checking account is a great way to lower your financial stress and avoid unnecessary damage to your bank account and long-term financial security.