Avoid Overdraft Fees Forever With These 3 Banks
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Overdraft fees are the financial equivalent of a parking ticket: annoying, avoidable, and somehow always showing up at the worst time.
In 2024, about 11% of Americans got hit with one. But the good news is you don't have to be part of that 11% ever again.
A growing number of banks have ditched overdraft fees entirely. Some even offer a little cushion if you accidentally overspend. Here are three of the best ones, each paying interest rates that crush the national average.
1. SoFi®
I've researched just about every bank account out there, and SoFi Checking and Savings (Member FDIC) is still the one I use myself.
Here's why: SoFi® offers up to $50 in no-fee overdraft coverage with direct deposit. If you overspend, SoFi® simply covers you and deducts the balance from your next paycheck. You'll need at least $1,000 in monthly direct deposits to qualify, but that unlocks a ton of perks.
Highlights:
- Annual percentage yield (APY) of up to 4.00% on savings and 0.50% on checking with direct deposit
- Early paycheck access (up to two days sooner)
- No account fees or minimums
SoFi® also offers stress-free overdraft protection that automatically pulls money from savings if your checking runs short.
Read our full SoFi Checking and Savings (Member FDIC) review and see how much more you could earn.
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Earn up to 4.00% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.30% APY as of 12/23/25) for up to 6 months. Open a new SoFi Checking and Savings account and pay the $10 SoFi Plus subscription every 30 days OR receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 1/31/26. Rates variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC.
- Competitive APY on both Savings and Checking
- No monthly account fee
- Welcome bonus up to $300 (direct deposit required)
- ATM access
- Unlimited number of external transfers (up to daily transaction limits)
- FDIC insured (up to $3M with opt-in to SoFi Insured Deposit Program)
- Early access to direct deposits
- Tools to help you track savings goals
- Combo account only; no stand-alone savings or checking
- Maximum Savings APY requires direct deposit
- No branch access; online only
- Overdraft protection requires monthly direct deposit minimum
For those who plan to set up direct deposit with their new account, we think SoFi Checking and Savings (Member FDIC) is hard to beat. Not only does this savings account offer a strong APY, but the linked checking account earns an above-average rate, too -- which is a rare perk. Plus, new customers earn a bonus of up to $300 with eligible direct deposit. Frankly, it's the kind of combo that could make it worthwhile to switch banking relationships.
2. Capital One
Capital One stands out as one of the few major banks that's eliminated overdraft fees completely.
If a transaction would push you negative, Capital One simply declines it or, if you qualify, covers it at no cost. To be eligible, you'll need at least $250 in deposits in two of the past three months.
You can also link a Capital One 360 Performance Savings account to automatically transfer funds if your checking runs short.
Perks include:
- 3.30% APY on savings
- No fees or minimum deposits
- 24/7 customer service and branch access
For anyone who wants the best of both worlds -- digital tools and in-person banking -- Capital One is a safe bet.
Explore Capital One's lineup of account options in our full review and start earning more today.
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- Competitive APY
- No monthly account fee
- Comfort of a well-known brand and reputation
- Branch access (if you live near one)
- 24/7 customer support
- FDIC insured
- No ATM access
Capital One 360 Performance Savings checks all the boxes we look for in a high-yield savings account. It even offers branch locations and Capital One Cafes where customers can seek in-person support (if you live near one). This makes it a great fit when you want to reap the rewards of online banking but aren't quite ready to cut ties with brick-and-mortar banks.
3. Ally
Ally Bank is another standout for overdraft protection done right.
Every account includes up to $100 in overdraft coverage, and that limit can rise to $250 with recurring direct deposits of $250 or more for two straight months. Just keep one deposit coming in at least every 45 days.
Why else Ally stands out:
- 3.40% APY on Ally Bank Savings balances
- No monthly fees or balance requirements
- 24/7 U.S.-based customer support
If you're comfortable with online-only banking, Ally offers one of the cleanest, most customer-friendly experiences around.
If you want to see even more high-earning, fee-free accounts, check out our best savings accounts page for today's top offers.
Our Research Expert
Ryan Wilcox is a full-time Personal Finance Writer at Motley Fool Money, covering credit cards, bank accounts, investing, auto insurance, and other personal finance topics. Ryan has been writing about credit cards and savings since 2022. Before joining Motley Fool Money, he was a full-time writer at The Points Guy, where he focused on maximizing credit card rewards and travel strategies. He holds a bachelor’s degree in English and American History from the University of North Carolina at Chapel Hill, where he also spent four years reporting for The Daily Tar Heel. With a background in both journalism and consumer finance, he brings a clear and thoughtful voice to money topics. Outside of work, Ryan is likely reading, writing, or updating his Letterboxd account.