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7 current accounts with no overdraft fees in 2024

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7 current accounts with no overdraft fees in 2024

In early 2022, Capital One became the first major bank to eliminate all overdraft fees and insufficient funds fees, in a move that may shield itself from any close scrutiny from the U.S. Financial Protection Bureau. Consumer (CFPB).

Following that announcement, JPMorgan Chase said it will offer account holders more ways to avoid paying overdraft service fees: Customers now have a full day after overdrafting their account to replenish their balance, and customers can access their direct deposit payroll funds two days earlier.

While these are the two banks in the news recently, they both join the trend of some smaller banks lowering their overdraft charges to attract more consumers. Online-only Ally Bank previously ended overdraft fees on all accounts in an effort to prevent people from falling behind financially as the pandemic continued.

An overdraft fee is a regular bank fee charged when you spend more than the amount available in your account. This results in a negative balance and you may be hit with a hefty overdraft fee of up to $35 (sometimes per transaction).

Running low on funds can easily happen if you’re not keeping an eye on your bank balance, and those living paycheck to paycheck are the most vulnerable. In fact, 43% of vulnerable households with checking accounts report being overdrafted in the past year, with an average of 9.6 overdrafts, according to the FinHealth Spending Report 2021. At a fee of $35 per overdraft, they are almost $350 a year that consumers pay because they didn’t have enough cash available to cover a purchase, payment or withdrawal.

Below, CNBC Select outlines seven checking accounts with zero overdraft fees so you can be sure you won’t be charged the next time you make this common mistake.

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7 checking accounts with zero overdraft fees

1. Capital One 360 ​​Checking® account

Capital One 360 ​​Checking does not charge overdraft fees or insufficient funds fees. It currently has no monthly maintenance fees, minimum deposit or balance requirements. Account holders earn 0.10% APY and have access to their free ATM network of over 70,000 Capital One®, MoneyPass and Allpoint® ATMs.

2. Ally Bank Expense Account

The Ally Bank Spending Account (Ally Checking Product) has zero overdraft fees, monthly maintenance fees, minimum deposit or balance requirements. Account holders earn 0.10% APY on balances under $15,000 and 0.25% APY on balances over $15,000. Its free ATM network includes more than 43,000 Allpoint® ATMs.

3. Discover® Cashback Debit Account

Discover® Cashback Debit Checking doesn’t charge for your eligible overdraft protection—money is taken from your Discover Savings Account to cover an overdraft. There are no monthly maintenance fees and account holders do not need to make a minimum deposit or maintain a minimum balance. With this checking account, you can also earn rewards for your spending: Earn 1% cash back on up to $3,000 in debit card purchases each month. Discover’s ATM network includes more than 60,000 Allpoint® and MoneyPass® ATMs.

4. Check for rewards from Axos Bank

With Axos Bank Rewards Checking, an online bank, customers won’t pay monthly fees or overdraft fees. There are no minimum balance requirements and no initial deposit requirements. There are also tiered APY rates where account holders can earn up to 3.30% APY, if they meet specific requirements: receive monthly direct deposits totaling $1,500 or more, maintain an average daily balance of $2,500 per month in an Axos Invest managed portfolio account, maintain an average daily balance of $2,500 per month in an Axos Invest self-directed trading account, use your Rewards checking account to make the full monthly consumer loan payment d ‘Axos Bank and use the debit card for at least 10 monthly transactions.

5. Improvement check

Betterment Checking customers can take advantage of this online-only account that has no overdraft fees or minimum account requirements. Betterment will also refund all out-of-network ATM fees worldwide, including foreign transaction fees. Account holders can earn automatic cash back rewards when they spend at popular brands including Dunkin’, adidas, Walmart, Sam’s Club and Staples. Plus, you get free cell phone insurance when you pay your cell phone bill with your Betterment Debit Card.

6. Wealthfront Cash Account

The Wealthfront Cash account offers clients no account fees or overdraft fees. You can earn 4.50% APY on all account balances, as well as access 19,000 free ATMs. Wealthfront also makes investing faster by allowing account holders to transfer (for free) their extra cash to a linked Wealthfront investment account.

7. Alliant Credit Union High Rate Check

Alliant Credit Union High-Rate Checking has no monthly service fee, minimum balance requirement, or overdraft fees. The checking account also offers a higher-than-average 0.25% APY on all balances, and account holders can access more than 80,000 free ATMs nationwide.

Find the best savings account for you: Help your money grow by finding the savings account that offers the best rates and features.

bottom line

Overdraft fees may not seem like a problem at first when you’re only charged about $30, but overdrafting your account more than once can definitely add up.

If overdrafting is something you’ve experienced in the past, consider signing up for one of the above current accounts to avoid paying additional fees.

Why trust CNBC Select?

At CNBC Select, our mission is to provide our readers with high-quality journalistic service and comprehensive consumer advice so they can make informed decisions with their money. Each banking article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of banking products. Although CNBC Select earns a commission from affiliate partners on many offers and links, we create all of our content without input from our commercial team or outside third parties, and we pride ourselves on our journalistic standards and ethics.

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Information about Capital One 360 ​​Checking Account, Ally Bank Spending Account, Discover Cashback Debit Account, i Alliant Credit Union High-Rate Checking Account has been independently collected by Select and has not been reviewed or provided by issuers prior to publication.

Ally Bank, Capital One Bank and Discover® Bank, are members of the FDIC. Alliant Credit Union is a member of the NCUA.

Editorial note: The opinions, analyses, reviews or recommendations expressed in this article are those of Select only and have not been reviewed, approved or endorsed by any third party.

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