I'm Sick and Tired of Overdraft Fees. Here Are the 3 Best Banks Without Them
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I don't know about you, but I hate the fact that banks are still charging overdraft fees in 2025.
According to Motley Fool Money research, 11% of Americans paid an overdraft fee last year. That's billions of dollars going to banks for "covering" people who overcharge their accounts.
The good news, though, is that overdraft fees are entirely avoidable -- because there are a handful of banks that don't charge them at all. Here are three of my favorites.
1. SoFi®
There are a handful of great bank accounts I regularly write about. But there's only one I actually use myself: SoFi Checking and Savings (Member FDIC).
With SoFi®, you'll get up to $50 in no-fee overdraft coverage with direct deposit. That means they'll let you "borrow" up to $50 if you overcharge your account, then deduct it from your next deposit. You'll just have to make at least $1,000 a month in direct deposits to qualify.
You'll also get overdraft protection, which automatically pulls money from your savings account if you spend more than what's in your checking account.
That's not all that SoFi® offers, though. You'll also enjoy:
- Annual percentage yield (APY) of up to 4.50% on savings with direct deposit
- Access to paychecks up to two days early with direct deposit
- No account fees or minimum deposit requirements
For no overdraft fees and a lot more, SoFi® is a great pick.
Want to earn up to 4.50% APY for a limited time? Read our full review of SoFi Checking and Savings (Member FDIC) and open an account today.
On SoFi's Secure Website.
Member FDIC.
SoFi Checking and Savings
On SoFi's Secure Website.
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- 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
Looking for a big bank with no overdraft fees? Capital One is a great starting point. It charges no overdraft fees, and its checking account offers a few ways to help you avoid overdrafts in the first place.
First, Capital One can automatically decline transactions that would overdraft your account. No overdrafting = no overdraft fees.
Capital One also lets you set up automatic transfers from a linked savings account, like a Capital One 360 Performance Savings account. That means your savings can cover you automatically if you overdraft from your checking account.
Lastly, if you do overcharge your account, Capital One may cover you at no charge -- otherwise, your payment will just be declined. Whether you get approved depends on the size of the transaction, your account standing, your overdraft history, and more. You'll also have to have deposited at least $250 in two of the past three months to qualify.
In all, that's one of the best overdraft policies you'll find from a big bank. Plus, you'll get:
- 3.40% APY on savings
- No account fees or minimum deposits
- Access to physical Capital One branches
Ready for a big bank with no overdraft fees of any kind? Read our Capital One review today to get started.
On SoFi's Secure Website.
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Capital One 360 Performance Savings
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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 Bank
Finally, Ally Bank also offers automatic savings transfers and no overdraft fees of any kind.
With Ally, all users get overdraft coverage of up to $100. Users can also set up and receive qualifying direct deposits of $250 or more for two straight months to increase their coverage to $250. Just make sure you have at least one direct deposit in your account every 45 days.
I'd also recommend Ally because it has:
- A savings account with 3.40% APY
- No account fees or minimum balance requirements
For no overdraft fees and a sleek online-only banking experience, Ally is a great pick.
Looking for other options? See our full list of the best banks without overdraft fees and find the one that's right for you today.
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.