Never Pay an Overdraft Fee Again With These 3 Banks
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Were you part of the 11% of Americans who paid an overdraft fee in 2024? Even if your answer is "no," it's worth switching to a bank without them.
Big banks make billions of dollars on pesky fees, including overdraft fees, every year. The good news, though, is that they're entirely avoidable.
That's because there are many banks that don't charge overdraft fees at all. Here are three of the best ones, with APYs at least eight times the national average.
1. SoFi®
I've written about tons of bank accounts, but there's only one I use myself: SoFi Checking and Savings (Member FDIC).
SoFi® offers up to $50 in no-fee overdraft coverage with direct deposit. That means they'll let you "borrow" up to $50 if you spend more than what's in your account, then they'll deduct it from your next deposit. Users have to make at least $1,000 in monthly direct deposits to qualify.
SoFi® also offers overdraft protection, which automatically pulls money from your savings account if you spend more than what's in your checking account.
I also love how SoFi® offers:
- An annual percentage yield (APY) of up to 4.50% on savings and 0.50% APY on checking with direct deposit
- Access to paychecks up to two days early with direct deposit
- No account fees or minimum deposit requirements
If you want to enjoy no overdraft fees, a top APY, early paychecks, and more, SoFi® is the way to go.
Want to earn up to 4.50% APY? 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
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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
Capital One has no overdraft fees, and its checking account also offers some ways to avoid overdrafts in the first place.
First, Capital One will automatically decline transactions that would overdraft your account.
Another option is to set up automatic transfers from a linked savings account, like a Capital One 360 Performance Savings account. That way, you'll be automatically covered if you spend more than what's in your checking account.
If you do overdraft, Capital One might decide to cover you for no fee (otherwise, your payment will just be declined). Approval depends on things like transaction size, account standing, and overdraft history. You'll also have to have deposited at least $250 in two of the past three months to qualify.
Altogether, that's one of the most generous overdraft policies you'll find from a big bank. You'll also get:
- 3.50% APY on savings
- No account fees or minimum deposits
- Access to physical Capital One branches
- 24/7 customer service
Ready for no overdraft fees of any kind? Read our Capital One review today to get started.
On SoFi's Secure Website.
Member FDIC.
2025 Award Winner
Capital One 360 Performance Savings
On Capital One's Secure Website.
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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 also offers automatic savings transfers and no overdraft fees, ever.
With Ally, all users get overdraft coverage of up to $100. But if you set up and receive qualifying direct deposits of $250 or more for two straight months, your overdraft coverage can increase to $250. Just make sure your account receives at least one direct deposit every 45 days.
Ally's also great because it has:
- A savings account with 3.50% APY
- No account fees or minimum balance requirements
- 24/7 customer service
If you're comfortable with an online-only banking experience, Ally is another strong choice.
Want more options? Check out our full list of banks with no overdraft fees to find the one that's right for you.
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.