Banks That Let You Overdraft With No Fees in 2026

While some banks offer specific account types with no fees, many other banks and financial institutions have done away with overdraft fees entirely. Some offer fee-free overdraft coverage up to a certain limit, while others decline transactions that would put your account in the negative.

It’s not just about fees — the best options are armed with multiple features to protect you from overdrafting entirely, like overdraft transfer or early direct deposit.

1. Chime^®

Overview

• No account fees.¹
• SpotMe® feature that covers transactions from $20 to $200 depending on your account history.²
• Early direct deposit.

Chime offers a checking account with no overdraft fees, no monthly maintenance fees, and no minimum balance requirements. Eligible members can access SpotMe^®, which covers overdrafts up to $200 on debit card purchases and cash withdrawals — all without charging a fee.

SpotMe limits start at $20 and can grow based on the length of your account history, and your direct deposit history and amount. You’ll also get paid up to two days early³ with direct deposit, plus access to over 60,000 fee-free ATMs nationwide.⁴

2. Ally Bank⁵

Overview

• No account fees.
• Overdraft transfer from savings account.
• Coverage on transactions up to $250.

Ally Bank’s Spending Account doesn’t charge overdraft fees. Instead, the bank provides two layers of protection:

• Overdraft Transfer Service: Automatically moves money from your linked savings account when your checking balance runs low.
• CoverDraft: May cover overdrafts up to $250 for eligible accounts without charging a fee.

Ally also has no monthly maintenance fees and provides access to over 43,000 fee-free ATMs through the Allpoint network.

3. Capital One⁶

Overview

• No account fees.
• Overdraft transfer from savings account.

Capital One 360 Checking has no overdraft fees, no monthly fees, and no minimum balance requirements. You can set up free overdraft protection by linking a Capital One savings account. When your checking balance drops too low, funds transfer automatically from savings to cover the difference.

The account also provides access to over 70,000 fee-free ATMs at Capital One locations and partner networks.

4. Varo Bank⁷

Overview

• No account fees.
• Overdraft coverage up to $250.
• Early direct deposit.

Varo Bank doesn’t charge overdraft fees on its checking account. Eligible customers can access Varo Advance, which provides small cash advances up to $250 with no interest. Repayment happens automatically when your next direct deposit arrives.

The account has no monthly fees and offers early direct deposit up to two days ahead of your scheduled payday.

5. SoFi⁸

Overview

• No account fees.
• Overdraft transfer from savings account.
• Early direct deposit.

SoFi Checking and Savings doesn’t charge overdraft fees. The account also has no monthly fees and offers a competitive APY – the annual percentage yield you earn on your balance. You can get paid up to two days early with direct deposit.

SoFi provides access to over 55,000 fee-free ATMs through the Allpoint network. The bank also reimburses ATM fees if you use an out-of-network machine.

6. Discover Bank⁹

Overview

• No account fees.
• Overdraft transactions declined.
• Cash back on debit purchases.

Discover’s Cashback Debit Account has no overdraft fees, no monthly fees, and no minimum balance requirements. The account earns 1% cash back on up to $3,000 in debit card purchases each month.

Discover doesn’t offer overdraft coverage, so transactions that exceed your balance are typically declined. This approach prevents overdrafts from happening in the first place rather than covering them after the fact.

7. Axos Bank¹⁰

Overview

• No overdraft fees.
• Overdraft coverage up to $50.
• Rewards for debit purchases.

Axos Bank Rewards Checking doesn’t charge overdraft fees. The account offers up to $50 in overdraft forgiveness, meaning small overdrafts are covered without penalty. You’ll also earn rewards on debit card purchases.

Axos reimburses ATM fees nationwide and has no monthly maintenance fees with qualifying direct deposits.

8. Alliant Credit Union¹¹

Overview

• No account fees.
• Overdraft transfer protection.

Alliant Credit Union’s High-Rate Checking account has no overdraft fees and no monthly fees. The account earns a competitive APY on your balance and provides access to over 80,000 fee-free ATMs.

Alliant offers overdraft protection by linking to a savings account. When your checking balance runs low, funds transfer automatically to cover the shortfall.

Different banks handle overdrafts in different ways. Some cover small overdrafts for free, while others simply decline transactions that would put your account in the negative. Here’s a quick comparison of how each option works.

Tip: If you occasionally need a small buffer for unexpected expenses, look for accounts that offer fee-free overdraft coverage. Accounts that simply decline transactions work well if you prefer to avoid overdrafts altogether. If you find that you’re frequently overdrafting your account, it may be time to reassess your budget.

Finding an account with no overdraft fees is a great first step. However, a few other factors can make a big difference in your day-to-day banking experience.

Look for banks with fee-free overdraft limits

Some accounts let you overdraft a small amount without penalty, while others decline any transaction that would put your balance in the negative. Think about which approach fits your situation better.

If you occasionally need a small cushion between paychecks, an account with fee-free overdraft coverage can provide peace of mind. Chime’s SpotMe, for example, covers eligible members for up to $200 on debit card purchases and ATM withdrawals. On the other hand, if you rely on inconsistent income or simply prefer to avoid overdrafts entirely, an account that declines transactions might work better for you.

Check for monthly maintenance fees

An account with no overdraft fees might still charge monthly maintenance fees, which can make your balance more likely to tip into the negative. Account maintenance fees can range from $5 to $15 per month, though many banks waive them if you meet certain requirements — like maintaining a minimum balance or setting up direct deposit.

The best accounts have no monthly fees at all, regardless of your balance or activity. All eight options listed above fall into this category.

Review the ATM network size

ATM fees can add up quickly if you frequently withdraw cash. A single out-of-network ATM withdrawal can cost $3 to $5, and some ATM operators charge their own fees on top of that.

Look for accounts with large fee-free ATM networks. Chime provides access to over 60,000 fee-free ATMs, while Alliant Credit Union offers access to more than 80,000. Some banks, like SoFi and Axos, reimburse out-of-network ATM fees instead.

Find a bank with early direct deposit

Many online banks and financial institutions offer early direct deposit, which lets you access your paycheck up to two days before your scheduled payday. This feature can help you avoid overdrafts by giving you access to your money earlier.

Early direct deposit is especially helpful if you’re living paycheck to paycheck and your bills don’t align with your regular paydays. Chime, Varo, and SoFi all offer this feature at no extra cost.

Consider using a credit card for purchases

If you’re careful, using a credit card between paychecks can give you a little more control over when money comes out of your checking account, as long as you don’t spend more than you have coming within the next month. You’ll also need to make sure you’re paying off your balance each cycle to avoid paying interest and falling into a bad debt cycle.