6 Banks With Highest Overdraft Limit
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U.S. banks collected $5.8 billion in overdraft fees in 2023, according to the Consumer Financial Protection Bureau (CFPB). With fees as high as $37 for each overdraft incurred, a consumer can easily face hundreds of dollars a day in penalties.
Here, we look at which banks tend to be most forgiving and may ultimately cost you less.
An overdraft limit is the maximum amount of money a bank will pay to cover a shortage on your behalf.
Let's say you have $1,000 in your checking account, but a property tax bill for $1,200 comes through. Since there's not enough money in the account to cover the entire bill, the bank has two choices: It can decline the payment entirely or cover the $200 shortfall.
As long as the bank has an overdraft limit of $200 or more, it will choose the second option. Depending on the bank, you may be charged interest on the $200, but at least your property tax bill is paid.
Overdraft rules vary by bank. For example, some banks require you to sign up for overdraft protection, while others provide it automatically. Some charge an overdraft fee, while others don't. As you shop around for a bank that fits your needs, here are some of the U.S. banks with the highest overdraft limits.
Citizens Access® Savings
Citizens Access® Savings offers a highly competitive APY and most of the features you'd expect from a reputable online savings account. Beware that wire transfers are not permitted — which may be inconvenient if you plan to pay a mortgage down-payment or closing costs from this account. Otherwise, funds should be easy to access through online transfers.
Checking accounts that have been open for at least 60 days and remain in good standing are eligible for up to $500 in overdraft protection. An overdraft fee of $29 per item is assessed, with up to five fees charged per day.
Alliant High-Rate Checking
Alliant is an online-only credit union based out of Chicago; however, anyone can qualify for membership. There is no monthly maintenance fee, no overdraft fees, and no monthly minimum balance requirement. To qualify for the high-yield account, you only need to meet two monthly requirements. It's not a bank, so it's not a member of the FDIC, but Alliant accounts are federally insured through the National Credit Union Administration.
As long as you have been a member of the credit union for at least six months and have made qualifying deposits totaling at least $600 into your checking account in the previous 30 days, Alliant will use its Courtesy Pay program to cover up to $600 for checks and electronic payments. Debit card transactions are not eligible.
New checking accounts receive standard overdraft coverage after they've been open for 31 days and as long as they remain in good standing. Overdraft limits of up to $1,000 are available based on account type. Customers are assessed a fee of $36 for each overdraft over $50, with a daily limit of three.
Available only for consumer checking accounts, Cornerstone Financial provides customers with up to $1,000 overdraft protection and gives them up to 30 days to bring their account balance into the positive. The credit union charges a $35 fee per transaction, with a limit of five fees per day.
Patriot Federal's Courtesy Pay protection plan covers accidental overdrafts up to $1,000, with a $35 fee per overdraft and a limit of seven fees per day.
Eligible consumer checking account holders are granted overdraft protection with a limit of $500. Customers pay $33 per overdraft, with a daily limit of five overdraft fees.
All but one of the banks listed above charge an overdraft fee. One way to minimize overdraft fees is to link your checking account to another account type at the same bank, like a savings or money market account.
It's not uncommon for banks to charge as little as $5 to $10 to transfer funds from one of your accounts into checking, giving you enough money to cover the payment.
However, you may want to consider working with one of the banks that let you overdraft right away. Naturally, the goal is to always have enough money in your account to cover your expenses, but life happens, and so does the occasional overdraft.
Here's a sample of financial institutions that may be able to save you money.
SoFi Checking and Savings
On SoFi's Secure Website.
On SoFi's Secure Website.
With no fees or minimums and tools designed to maximize your savings, the combo account is a good fit for individuals who want to do most of their banking in one place online. The account offers flexibility to access or move funds, especially if your employer's payroll system allows you to access the bank's early direct deposit benefit.
SoFi® is another bank that won't charge an overdraft fee if you accidentally spend more than is in your account. Once you set up a direct deposit of at least $1,000, the bank will pay up to $50 if there's not enough money in the account to cover a check. Plus, SoFi® offers a new account bonus worth up to $300.¹
Chime® Checking Account
Chime Checking makes it easy to get paid early. It's a great option for folks worried about getting hit with surprise fees -- Chime has none of those. It's a great checking account for beginners wanting simplicity.
Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank or Stride Bank, N.A.; Members FDIC.
*Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We 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.
¹ Eligibility requirements apply. Not all users will qualify. MyPay credit limits range from $20-$500. $2 fee applies to get funds instantly. MyPay™ line of credit provided by The Bancorp Bank, N.A. or Stride Bank, N.A. MyPay services provided by Chime Capital, LLC (NMLS ID 2316451).
² SpotMe® on Debit is an optional, no fee overdraft service attached to your Chime Checking Account. To qualify for the SpotMe on Debit service, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account each month and have activated your physical Chime Visa® Debit Card or secured Chime Credit Builder Visa® Credit Card. Qualifying members will be allowed to overdraw their Chime Checking Account for up to $20 on debit card purchases and cash withdrawals initially but may later be eligible for a higher limit of up to $200 or more based on Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Debit limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime's sole discretion. Although Chime does not charge any overdraft fees for SpotMe on Debit, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe on Debit will not cover any non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. SpotMe on Debit Terms and Conditions.
If you can make monthly deposits of $200 or more and activate your Chime® Visa debit card, you qualify for the bank's SpotMe® program. Once you're enrolled, the program offers an automatic overdraft limit of $20 that may eventually be increased to $200.
Ally Spending Account
The Ally Spending Account is an appealing option for those who are comfortable managing their money online. Its monthly ATM fee reimbursements give you the freedom to access your cash wherever you need to. That, plus its APY, means you should only make money with this account.
Ally Bank charges no overdraft fees, but does offer two overdraft protection options. The first allows you to transfer funds from a linked Ally savings or money market account into your checking account. The second is called "CoverDraft" and provides up to $250 in overdraft coverage if you set up and receive a qualifying direct deposit of at least $250 for two months in a row.
Few products or services are perfect, so here we offer both the pros and cons of high overdraft limits.
As mentioned, overdraft fees can cost hundreds of dollars a day, depending on how many overdrafts occur. To make yourself right with your financial institution, you must repay the amount it covered, plus all associated fees.
Your best bet is to always keep an eye on your checking account, even if that means conducting a two-minute review each day. Life gets busy, and it's easy to lose track of how much money you have available at any given time. However, overdrafts are less likely to happen when you faithfully check your balance against outstanding payments.
Overdrafts are frustrating, but they don't have to spoil your finances. In addition to working with a safe bank, the goal is to find one that provides great coverage and low fees.
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