Overdraft fees are some of the most frustrating charges in banking—often hitting when you can least afford them. In 2025, some banks still charge up to $35 every time your balance drops below zero, even for small purchases.
But not all banks play that game. This list highlights 10 checking accounts that don’t charge overdraft fees at all. If you’ve struggled with fees, account closures, or bad marks on your ChexSystems report, these accounts offer a safer way to manage your money.
Best Banks With No Overdraft Fees in 2025
Not all no-fee accounts are created equal. Some come with direct deposit requirements, while others are more flexible. Here are ten banks that truly stand out for offering no overdraft fees, ranked with our affiliate partners near the top where it makes sense.
1. SoFi Checking & Savings
SoFi offers automatic no-fee overdraft coverage when you set up direct deposit. If a purchase or bill causes your balance to go negative, SoFi covers the difference without charging a fee. Your account is brought back to positive with your next deposit.
SoFi also stands out for earning interest on your checking balance and offering cash-back rewards. It’s FDIC-insured, has no account fees, and comes with free access to budgeting tools and financial insights.
2. Current
Current offers up to $200 in fee-free overdraft protection through its Overdrive program. To qualify, you need at least $500 in direct deposits each month. Once active, you can overdraw your account without fees—and Current will automatically apply your next deposit to clear the negative balance.
It’s a solid choice for those looking for a second-chance option. The mobile app is fast, clean, and easy to use, with instant push notifications and budgeting tools built in.
3. Chime
Chime’s SpotMe® feature covers overdrafts up to $200 with no fees, as long as you have qualifying direct deposits. The limit starts lower and increases based on your account history. Instead of charging you for going negative, Chime just covers it and settles up with your next deposit.
This is one of the most popular options for people who’ve had banking issues in the past. Chime doesn’t use ChexSystems, has no monthly fees, and the app gives you real-time alerts so you always know where your balance stands.
4. GO2bank
GO2bank lets you overdraft up to $200 with no fees after setting up qualifying direct deposits. It’s designed to be a mobile-first bank and offers early direct deposit, credit-building features, and overdraft protection once you meet the deposit requirements.
GO2bank is also friendly to people with a bad banking history, making it a great second-chance checking account. Plus, you can manage everything through its intuitive app without visiting a branch.
5. Upgrade Rewards Checking Plus
Upgrade Rewards Checking Plus doesn’t charge overdraft fees at all. Instead, any transaction that would put your account below zero is simply declined. While that may seem strict, it protects you from spending money you don’t have and getting hit with unexpected fees.
You can also earn up to 2% cash back on common everyday purchases. When paired with Upgrade’s personal credit lines or cards, it becomes a strong option for those looking to rebuild their credit report while staying fee-free.
6. Capital One 360 Checking
Capital One gives you the option to prevent overdraft fees by choosing “Auto Decline” at signup. That means any transaction that would overdraft your account is simply blocked—no fees, no hassle.
If you prefer a bit more flexibility, you can link a Capital One savings account or credit card for free overdraft coverage. The mobile app is strong, and you can still visit physical branches in most states if you prefer in-person support.
7. Ally Bank
Ally offers two forms of free overdraft coverage: Overdraft Transfer from savings and CoverDraft, which allows you to go negative up to $250. There are no fees for either option, and once your next deposit hits, your balance is corrected automatically.
Since Ally doesn’t use ChexSystems, it’s a good choice if you’ve had account closures in the past. It’s 100% online, easy to set up, and has strong customer reviews for support and reliability.
8. Varo Bank
Varo gives you access to up to $50 in fee-free overdraft coverage through its No Fee Overdraft program. To qualify, you need at least $1,000 in monthly direct deposits. Once enrolled, Varo will cover purchases that would overdraft your account up to your approved limit.
This account works well for customers with low credit scores or banking issues. Varo doesn’t use ChexSystems and has no monthly fees, making it a safe and simple account for rebuilding.
9. Discover Bank Checking
Discover doesn’t allow your account to overdraft in the first place. If you don’t have enough funds for a transaction, it just gets declined. There are no fees, no penalties, and no surprises.
This is a solid option for anyone who wants complete control over their spending. There’s also no minimum balance requirement, no monthly fee, and Discover has a reputation for top-tier customer service.
10. Alliant Credit Union High-Rate Checking
Alliant’s High-Rate Checking account doesn’t charge overdraft fees. If you overdraw your account, the transaction is simply declined—no penalty, no surprises. You can also link a savings account for free overdraft transfers.
Eligible members can enroll in Courtesy Pay, which covers checks and ACH payments if your account is in good standing and receives at least $600 in monthly deposits. The account also has no monthly fees and reimburses up to $20 in ATM fees each month.
What Does “No Overdraft Fees” Actually Mean?
Not all “no overdraft” policies work the same way. Some banks let transactions go through with a small cushion or limit. Others just decline anything that would put your account in the negative. Understanding how these policies work can help you pick the right account for your habits.
Fee-Free vs. Overdraft Protection vs. Decline-Only Policies
When a bank says it has “no overdraft fees,” it usually means one of three things:
- Fee-Free Overdraft Protection: The bank lets you go negative up to a certain amount, often with direct deposit, and doesn’t charge a fee.
- Linked Account Transfers: Some banks link to savings or credit cards and automatically pull money to cover the shortfall.
- Auto-Decline: The safest option for strict budgeting—transactions that would overdraft are simply declined, so you never go negative.
Each type has pros and cons. Fee-free protection gives you flexibility, but auto-decline ensures you won’t accidentally spend more than you have.
Small Overdraft Cushions or Grace Periods
Some banks offer a cushion of $20 to $200, depending on your direct deposit history. Others give you a short grace period—often 24 hours—to bring your balance back up before charging anything. These small features make a big difference when timing is tight.
Why This Matters for People With Bad Credit or Tight Budgets
Overdraft fees often hit people who can least afford them. If your income fluctuates, or you’ve had trouble with account closures in the past, a no-fee account can help you stay in the banking system and avoid getting flagged by ChexSystems. It’s also a safer option if you’re rebuilding your financial habits or living on a tighter budget.
What to Watch Out for With “No Overdraft” Accounts
No overdraft fees sounds simple, but each bank sets its own rules. Some give you a cushion or protection, while others just block transactions. Knowing what to expect can save you from frustration later.
Are You Required to Set Up Direct Deposit?
In many cases, yes. Banks like Chime, Current, and Varo require direct deposits to unlock overdraft protection features. Without it, your transactions may be declined or not covered—even if the account technically has no overdraft fees.
Is There a Limit to How Much Coverage You Get?
Yes. Most banks cap their fee-free coverage at $50 to $200. That means you can’t go hundreds of dollars into the negative without consequences. Always check the coverage amount and how it’s determined—it often depends on your account activity or direct deposit history.
Will They Decline Transactions That Go Over?
Some accounts simply block any transaction that would overdraw your balance. This is common with banks like Discover and Upgrade. It’s a stricter approach, but one that guarantees you won’t spend money you don’t have—or rack up any fees.
Do They Report to ChexSystems or Credit Bureaus?
If you’ve had banking issues in the past, this matters. Some of the banks listed—like Chime, GO2bank, and Varo—don’t use ChexSystems at all, making them easier to qualify for. Others may report positive or negative activity to the credit bureaus, which can help or hurt your credit score depending on how you manage the account.
Next Steps if You’ve Struggled With Overdrafts in the Past
No-overdraft accounts are just one way to protect your finances. If you’re rebuilding or looking for better tools, here are two more smart moves to consider.
How to Avoid Overdrafts Altogether
Even if your bank doesn’t charge fees, the best move is to never overdraft in the first place. Use low-balance alerts, budget tools, and automatic transfers to keep your account in the clear. Read our full guide on how to avoid overdraft fees.
Looking for Second Chance Checking?
If you’ve been denied a checking account before, a second chance account might be a better fit. These accounts are designed for people with past banking issues. There are also plenty of banks that don’t do ChexSystems checks.
Final Thoughts
You don’t need to put up with overdraft fees in 2025. The banks above offer checking accounts that skip the penalties—and many are open to people who’ve been turned away elsewhere.
Choose the account that fits your needs today, especially if fees or account closures have caused issues in the past. Most of these can be opened online in just a few minutes.
