10 Best Banks with No Overdraft Fees for August 2022
When it comes to checking accounts, there are several fees that come with them, from maintenance and overdraft fees to ATM fees. However, you shouldn’t settle for just any current account when you can avoid some, if not all, of these fees by choosing from banks with no overdraft fees.
Free checking accounts do not charge the monthly maintenance fees charged by many banks. When you withdraw more than what is available in your checking account, most banks will cover the cost of a specific transaction and charge you an overdraft fee. Some banks, however, offer truly free checking accounts with no overdraft fees — and you’re about to learn about the top 10 options.
10 Best Free Chequing Accounts with No Overdraft Fees
The following 10 banks with no overdraft fees have been chosen because of their wide availability and low cost services.
1. Ally Bank Interest Chequing Account
Ally Bank is an online-only bank that offers an interest-bearing checking account with no overdraft fees. The current account has no minimum balance or monthly maintenance fees. It also pays an annual percentage yield interest on balances below $15,000 and an even higher APY on accounts with a daily balance of $15,000 or more.
You can use your Ally debit card at over 43,000 free Allpoint ATMs in the United States. Plus, Ally Bank reimburses you $10 per statement cycle for fees charged at non-Allpoint ATMs nationwide.
This interest-bearing chequing account lets you deposit checks remotely, easily transfer and receive money, and automatically save when you spend if you have both a chequing and savings account with Ally Bank.
2. Check out the Bank Cashback debit account
This chequing account allows you to earn 1% cash back on debit card purchases totaling up to $3,000 per month. You also don’t have to worry about verification fees, as this account does not charge fees for monthly maintenance, insufficient funds, online bill payment, standard checks or any of its other features. practice.
Overdraft protection is also free of charge. When you sign up, you can link your Discover savings account or money market account to your checking account, which you can use to cover your regular overdrafts. Plus, you can access over 60,000 free ATMs in the US
3. Verification of Axos rewards
Axos is an online bank that offers a powerful rewards checking account with no monthly fees, no minimum balance requirements or overdraft fees. Axos Rewards Checking also offers competitive cashback. The rewards checking account offers five levels of interest, earning a decent APY of up to %.
To earn %APY, you must meet specific requirements like receiving a minimum of $1,500 per month in direct deposits and using your debit card for at least 10 monthly transactions. Axos Reward Checking requires an initial deposit of $50 and there is no limit to the number of refunds at domestic ATMs.
4. Fidelity Cash Management Account
Fidelity does not charge account fees with its cash management account, offering free overdraft protection. If you choose this service, you can link your current account to a savings account or a brokerage account. When you go over your current account, Fidelity transfers funds from your linked accounts to cover the overdraft.
A Fidelity cash management account has no monthly maintenance fees, no minimum balances and no ATM redemptions. Plus, your account has FDIC coverage of up to $1.25 million.
5. Verification of improvement
The Betterment online-only checking account has no account fees, account minimums or overdraft fees. It will also reimburse you for all out-of-network ATM fees and foreign transaction fees.
You will not only save money on fees, but you will also earn. Checking for upgrades offers cash rewards every time you spend. Plus, you don’t have to worry about losing your money since your money is FDIC insured up to $250,000 through NBKC.
6. Wealth Front Species
Wealthfront Cash is a high-yield checking account that not only provides overdraft protection, but also lets you start investing. There are no account fees or transfer fees with this account. Plus, you can access over 19,000 fee-free ATMs nationwide and direct deposits, with the option to get paid two days early on recurring deposits. Your funds will also be safe and secure since you will get up to $1 million in FDIC insurance through Wealthfront’s partners.
7. Alliant High Interest Verification
If you’re looking for a credit union experience, Alliant’s High Interest Chequing Account is worth considering. There are no monthly service fees, minimum balance requirements or overdraft fees. If you have overdraft protection, Alliant will automatically transfer money from your savings account to prevent accidental overdrafts.
Plus, this checking account has %APY on all balances, and you’ll get ATM fee reimbursement of up to $20 per month for using out-of-network ATMs. You can also access over 80,000 ATMs nationwide for free.
8. KeyBank Hassle-Free Account
KeyBank has a hassle-free account with no monthly service fees and no account minimums. It also has overdraft protection, so when you overdraw your account, the transaction will be declined. Even if you manage to get overdrawn, KeyBank will not charge you overdraft fees or insufficient funds. There is a minimum opening deposit of $10 for this account.
9. A Capital
Capital One recently announced plans to end overdraft fees — a policy change that is expected to begin in early 2022. Customers who have already paid overdraft fees will automatically be enrolled in an overdraft protection program. Additionally, those who choose to opt out will have all short trades declined, with a $0 fee.
Citi is one of the first major banks to announce that it will no longer charge overdraft, returned item or overdraft protection fees. The changes came into effect in June 2022, saving account holders a lot of money in unnecessary fees. Debit card purchases will be declined if your account is at risk of being overdrawn. Plus, overdraft protection will still be available free of charge.
Although some free checking accounts do not charge overdraft fees or monthly maintenance fees, they are not completely free.
It is important to note that some of the current accounts above do not have a physical presence, which means that they operate exclusively online. Other major banks like Wells Fargo, Bank of America and others offer free checking accounts with no overdraft fees, but have monthly service fees. However, some of these banks will allow you to waive these fees if you meet specific requirements.
Overdraft Fee FAQs
Which bank has the best overdraft limit?
There are several banks that no longer charge fees for overdrafts, so you don’t have to worry about going over your account limit. They include Citibank, Ally Bank, Capital One Bank and more.
Can I benefit from a waiver of overdraft fees?
How can I avoid being charged for an overdraft?
To avoid overdrafts, it is important to monitor your account balance. Be sure to note all outgoing checks and their impact on your balance. You can also sign up for notifications through the mobile banking app to notify you when your balance drops below a certain threshold.
Melanie Grafil and Cynthia Bowman contributed to the reporting of this article.
Rates are subject to change; unless otherwise specified, prices are updated periodically. All other account information is accurate as of August 15, 2022.
Editorial note: This content is not provided by any entity covered by this article. Any opinions, analyses, criticisms, evaluations, or recommendations expressed in this article are those of the author alone and have not been reviewed, endorsed, or otherwise endorsed by any entity named in this article.
This article originally appeared on GOBankingRates.com: 10 Best Banks with No Overdraft Fees for August 2022