11 Best Checking Accounts With No Overdraft Fees

Banking

It can be frustrating to overdraw from your bank account when funds are low. You’re already short on cash and now you have to pay an extra fine.

Of course, it makes sense for banks to have some sort of measure in place. If they didn’t, what would stop people from impulse buying? Or using their debit card as if it were a credit card?

But it’s not always impulse-buying when over half of all Americans are living paycheck to paycheck. And 57% of Americans can’t write a check for $500 to cover a surprise expense.

The standard of living may improve one day so that people won’t have to read fine print when choosing a bank. But, until that day comes, let’s talk about options.

If you’re worried about overdrafting, we’ve uncovered the best banks with $0 overdraft fees.

Top 11 Checking Accounts with No Overdraft Fees

1. Chime®

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  • No credit check
  • No minimum opening deposit or monthly service fees
  • Over 60,000+ fee-free ATMs1
  • Get paid up to 2 days early with direct deposit2

Chime® has a new fee-free overdraft feature called SpotMe®. They spot members up to $200 on debit card purchases when their balance is low, with no overdraft fees5.

Chime is a mobile-only banking option that allows you to get your paycheck up to two days early with direct deposit2.

In addition, you get daily balance notifications and instant transaction alerts whenever you use your Chime Visa Debit Card.

To avoid paying ATM fees, you’ll need to find a specified ATM via your mobile app whenever you need cash. There are over 60,000 fee-free1 ATMs to choose from.

This checking account has no minimum balance requirements, no monthly maintenance fees, no deposit required, and no foreign transaction fees.

2. Chase

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  • No credit check or ChexSystems
  • $100 bonus after 10 purchases in 60 days
  • Over 16,000+ fee-free ATMs
  • $4.95 monthly service fee

Chase is one of the most popular banks in the U.S. And now, they offer an account called Chase Secure Banking with no credit check, no ChexSystems, and no overdraft fees.

Account holders also get access to over 16,000 fee-free ATMs, free online bill pay, and free money orders and cashier’s checks.

With 4,700 locations across the country, this is an excellent option for anyone who prefers having access to physical branches.

Opening a Chase Secure Banking account comes with a $100 cash bonus when you use the card for 10 purchases within 60 days.

Account approval is immediate and you’ll receive your debit card within days. There is a small monthly service fee of $4.95; however, there is no minimum opening deposit to get started.

3. Quontic Bank

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  • Earn 1.10% APY
  • No monthly service fees
  • Over 90,000 fee-free ATMs
  • No overdraft fees

Quontic High Interest Checking is an easy and convenient way to manage your finances. The process of applying online only takes 3 minutes and has no impact on your credit score.

To open an account, you’ll need to provide basic contact information, your Social Security number, and date of birth. You’ll also need a minimum deposit of $100.

Once the account is open, you can earn 1.10% APY on all balance tiers when you make at least 10 qualifying debit card point of sale transactions of $10 or more per statement cycle. However, if you fail to make qualifying transactions, the interest and APY will be 0.01%.

There are no monthly fees or overdraft fees. Additionally, all eligible accounts are FDIC insured and include advanced security monitoring. With 90,000+ ATMs across the nation, customers can access their funds easily.

Quontic High Interest Checking also offers fully mobile and online banking options such as remote check deposit, bill pay, account transfers, and receipt tracking to make managing your finances easy.

4. Current

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  • No credit check
  • No minimum opening deposit or maintenance fees
  • Get paid up to 2 days faster
  • Overdraft up to $200 without any overdraft fees

Current is one of the fastest-growing mobile banking solutions in the U.S., with over one million members. However, Current is a financial technology company, not a bank. Most importantly, Current does not use ChexSystems or pull your credit report.

The Current mobile banking account offers fee-free overdraft protection of up to $100, 40,000 fee-free Allpoint ATMs, and no minimum balance.

You can also get paid up to two days early with direct deposit and earn up to 15x points, and get cashback.

5. Axos Bank

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  • No monthly service fees
  • 100% reimbursement of ATM fees
  • No overdraft fees
  • $100 sign-up bonus

The Rewards Checking account from Axos Bank is a great option for those looking for a bank account with no hidden fees.

The account comes with no monthly maintenance fees, unlimited domestic ATM fee reimbursements, cash back rewards, and even a $100 Welcome Bonus.

It also earns up to 1.25% APY, which is higher than the average interest rate for checking accounts.

Additionally, you can make unlimited free mobile deposits, and your funds are FDIC insured up to $250,000.

With no overdraft or non-sufficient fund fees, this account is great for those who may have had trouble with those fees in the past.

The account also has no minimum balance requirements and only requires a $50 deposit to open.

Axos Bank doesn’t use ChexSystems or credit reports when opening a Rewards Checking account.

overdraft fees

Tips to Avoid Overdrafting Your Account

The banks listed above offer the best solution. However, if you still decide to bank with a financial institution that charges overdraft fees, there are a few things you can do to lessen the likelihood of overdrawing your account.

First off, there are three things that suck up most people’s paychecks every two weeks.

  • Student Debt
  • Housing
  • Car Payments

Is this the situation you’re in?

Experts say you should never spend more than 28% of your income on housing, and no more than 10% to 20% on transportation.

Simply put, don’t live beyond your means. Do the math before you commit. If the monthly payments mean you won’t be able to afford a fast-food run once in a while, then you can’t afford them.

There are things you can do to lessen your student debt before you’re enrolled. However, it’s unlikely you’re in a position to take advantage of those things now. So, apart from consolidating your loans and getting into an income-based repayment plan, let’s look at some practical ways you can manage your bank account.

1. Watch your account balances

Check your accounts regularly to make sure your balances aren’t too low. If your bank has a mobile app, you can see your balance any time.

2. Set up alerts for low balances

If your bank or credit union offers to email you or send you a text alert when your balance is low, take advantage of it.

3. Use cash for all purchases

It’s certainly not convenient to go to the bank and withdraw cash every time you need to spend money.

To get around doing this, take out as much money as you can and leave just enough to pay your mortgage, car payment, and monthly bills. Take just enough cash with you when you go out, and leave your debit card and credit card at home.

This way, your budget is a very real one. If you go over, you can’t pay for what you’re trying to purchase. It’s not stressful; it’s practical. Use your phone as a calculator, know your state’s sales tax, and you’ll be just fine.

4. Use a prepaid debit card

This is basically the same as using cash, but you have the added security that comes with a debit card. If you use a prepaid debit card, monitor how much you have on the card by using a transaction register.

5. Keep track of all purchases and payments

This sounds simple, but it’s actually a powerful method to stay on top of your finances.

If you would rather not use your bank’s mobile app, you can write down every transaction in your register. If you always know how much money you have, you are less likely to waste it on small purchases.

You can also use a mobile app for budgeting to do this automatically. However, if you’re just starting out, you may want to track your everyday expenses manually before using your phone.

Frequently Asked Questions

What are overdraft fees?

Most banks charge you an overdraft fee when you withdraw or spend more money from your checking account than you have. Overdraft fees vary by bank, but having a negative balance will usually cost you around $35 per transaction.

Banks and credit unions make billions of dollars in overdraft and nonsufficient funds fees every year. Fortunately, paying overdraft and nonsufficient funds fees is now optional. You can choose to completely avoid them by choosing the right checking account.

Which banks have no overdraft fees?

There are numerous checking accounts that don’t charge overdraft fees. Luckily, the list seems likely to grow even more in the years ahead. Why? A recent FICO survey found that Millennials are two to three times more likely to close all accounts and switch banks completely.

Their reason?

It should really come as no surprise — expensive fees.

In the years to come, the number of banks on this list will most likely grow as Millennials make up half the workforce. But, until then, the banks listed above offer consumer-friendly overdraft services.

Are overdraft fees charged immediately?

If you have a checking account from a bank that charges overdraft fees, you usually have 5 to 7 days to fix your negative balance before you’re charged. However, thereafter, some banks charge overdraft fees every day your account is negative.

Some banks allow you to connect your checking account to your savings account or money market account. If you overdraft your checking, they will pull from your savings account to cover the overdraft.

How many overdraft fees can you get charged in a day?

There are no laws that specify a maximum number of fees that banks can charge for overdrafts. Each bank and credit union has its own limit on the number of overdraft fees it will charge in one day.

Most banks charge a maximum of 4 to 6 overdraft fees per day per account. However, some allow as many as 12 in one day.

Can I get overdraft fees waived?

Some banks will waive one overdraft fee per year as a courtesy. If overdrafting is something that you rarely do, contact your bank’s customer service to ask if they will waive it. However, if you do it frequently, it may be time to get a checking account with no overdraft fees or set up overdraft protection.

How can I avoid overdraft fees?

The best way to avoid overdraft fees is by getting a checking account that doesn’t have overdraft fees like the ones we listed above. We also offer some tips below to avoid overdrafting your account.

What is overdraft protection?

Overdraft protection is a service offered by banks that ensures your transactions are covered if you have insufficient funds in your checking account. The bank will automatically move funds you have available in a linked savings account, to the overdrawn account.

You may still incur a fee for the transfer from your linked account, but it’s usually less than the overdraft fee.

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. Credit Builder card issued by Stride Bank, N.A.

1. Out-of-network ATM withdrawal fees may apply with Chime except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.

2. Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. Chime 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.

5. Chime SpotMe is an optional, no fee service that requires a single deposit of $200 or more in qualifying direct deposits to the Chime Checking Account each month. All qualifying members will be allowed to overdraw their account up to $20 on debit card purchases and cash withdrawals initially, but may be later eligible for a higher limit of up to $200 or more based on member’s Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your limit. Your limit may change at any time, at Chime’s discretion. Although there are no overdraft fees, there may be out-of-network or third party fees associated with ATM transactions. SpotMe won’t cover non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. See Terms and Conditions.

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