Banks Without Overdraft Fees

Overdraft fees have long been a frustration for many banking customers, often leading to unexpected expenses. In response, several U.S. banks have eliminated these fees, while others continue to impose them, sometimes at significant rates. Understanding which banks offer fee-free overdraft services and which charge the highest fees can help consumers make informed decisions about where to manage their finances. Additionally, many banks now provide sign-up bonuses for new customers, adding extra value to their offerings.

Ally Bank: In June 2021, Ally Bank eliminated overdraft fees across all accounts. This ensures customers won’t incur additional charges if they accidentally overdraw their accounts. Ally Bank does not charge a monthly maintenance fee, making it an excellent choice for budget-conscious customers. While Ally does not currently offer a sign-up bonus, its fee-free structure remains highly attractive.
Capital One 360 Checking: Capital One’s 360 Checking account has no overdraft fees or monthly service fees. Customers also have access to robust overdraft options, including free savings transfers and overdraft coverage. Capital One often provides sign-up bonuses for new checking accounts, typically ranging from $100 to $400, depending on the promotion.
Chime: Chime, in partnership with Stride Bank and The Bancorp Bank, provides fee-free mobile banking. Its SpotMe feature allows eligible customers to overdraw their accounts up to a specified limit without incurring fees. Chime does not charge monthly maintenance fees but does not currently offer a sign-up bonus.
SoFi: SoFi checking accounts come with no overdraft fees or monthly maintenance fees, making it a straightforward banking option. SoFi frequently offers sign-up bonuses for new accounts, often rewarding customers with $50 to $250 for setting up direct deposits and meeting certain requirements.
U.S. Bank Safe Debit Account: This checkless account is designed to prevent overdrafts entirely by declining transactions that exceed the account balance. However, it does charge a $4.95 monthly maintenance fee. U.S. Bank sometimes offers bonuses for opening regular checking accounts but typically does not extend promotions to the Safe Debit Account.

Banks with Notable Overdraft Fees

Wells Fargo: Wells Fargo charges $35 per overdraft item, with a maximum of three fees per day, totaling up to $105 daily. Overdraft fees are not applicable to Clear Access Banking accounts. Wells Fargo frequently offers sign-up bonuses, ranging from $200 to $300, for new checking accounts when direct deposit requirements are met.
U.S. Bank (excluding Safe Debit Account): For accounts other than the Safe Debit Account, U.S. Bank charges $36 per overdraft item. However, the bank offers an Overdraft Fee Forgiven feature, giving customers extra time to cover their balances. U.S. Bank occasionally provides sign-up bonuses of $300 or more for new checking accounts.
Citizens Bank: At Citizens Bank, overdraft fees are $35 per item, applicable to various transaction types. While the bank doesn’t waive these fees entirely, it does occasionally run promotions for new customers, offering bonuses of $200 to $400 when opening a new checking account.
Bank of America: Bank of America charges a $10 overdraft fee per item over $1, with a maximum of two fees per day ($20). It also offers Balance Connect®, an overdraft protection service. New customers can often take advantage of sign-up bonuses, typically $100 to $300, for opening a checking account and meeting specific requirements.

Monthly Maintenance Fees on Regular Checking Accounts

Monthly maintenance fees vary across banks and account types. Some banks, like Ally and Chime, do not charge any fees, while others offer ways to waive fees by meeting specific criteria, such as maintaining a minimum balance or setting up direct deposits. For instance, Bank of America’s Advantage Plus Banking® has a $12 monthly maintenance fee, which can be waived by meeting certain conditions.

Conclusion

Many banks have taken steps to eliminate or reduce overdraft fees, while others continue to charge significant amounts. When choosing a bank, it’s essential to consider both overdraft and monthly maintenance fees as well as any available sign-up bonuses. These bonuses, which can range from $50 to $400, provide an excellent incentive for customers to switch to a more cost-effective and rewarding banking option. By carefully evaluating these factors, customers can find a bank that aligns with their financial habits and goals.

Also check out these banks that offer bonuses when you sign up for a new checking account.