Dana George has a BA in Management and Organization Development from Spring Arbor University. For more than 25 years, she has written and reported on business and finance, and she's still passionate about her work. Dana and her husband recently moved to Champaign, Illinois, home of the Fighting Illini. And though she finds the color orange unflattering on most people, she thinks they'll enjoy Champaign tremendously.
Our Banking Expert
Fact Checked Ashley Maready Writer and EditorAshley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.
Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page. APY = Annual Percentage Yield. APYs are subject to change at any time without notice.
U.S. banks collected $5.8 billion in overdraft fees in 2023, according to the Consumer Financial Protection Bureau (CFPB). With fees as high as $37 for each overdraft incurred, a consumer can easily face hundreds of dollars a day in penalties.
Here, we look at which banks tend to be most forgiving and may ultimately cost you less.
An overdraft limit is the maximum amount of money a bank will pay to cover a shortage on your behalf.
Let's say you have $1,000 in your checking account, but a property tax bill for $1,200 comes through. Since there's not enough money in the account to cover the entire bill, the bank has two choices: It can decline the payment entirely or cover the $200 shortfall.
As long as the bank has an overdraft limit of $200 or more, it will choose the second option. Depending on the bank, you may be charged interest on the $200, but at least your property tax bill is paid.
Overdraft rules vary by bank. For example, some banks require you to sign up for overdraft protection, while others provide it automatically. Some charge an overdraft fee, while others don't. As you shop around for a bank that fits your needs, here are some of the U.S. banks with the highest overdraft limits.
Rates as of Sep 08, 2024Citizens Access® Savings
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Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Citizens Access® Savings offers a highly competitive APY and most of the features you'd expect from a reputable online savings account. Beware that wire transfers are not permitted — which may be inconvenient if you plan to pay a mortgage down-payment or closing costs from this account. Otherwise, funds should be easy to access through online transfers.
Checking accounts that have been open for at least 60 days and remain in good standing are eligible for up to $500 in overdraft protection. An overdraft fee of $29 per item is assessed, with up to five fees charged per day.
Rates as of Sep 08, 2024Alliant High Rate Checking
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Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Alliant is an online-only credit union based out of Chicago; however, anyone can qualify for membership. There is no monthly maintenance fee, no overdraft fees, and no monthly minimum balance requirement. To qualify for the high-yield account, you only need to meet two monthly requirements. It's not a bank, so it's not a member of the FDIC, but Alliant accounts are federally insured through the National Credit Union Administration.
As long as you have been a member of the credit union for at least six months and have made qualifying deposits totaling at least $600 into your checking account in the previous 30 days, Alliant will use its Courtesy Pay program to cover up to $600 for checks and electronic payments. Debit card transactions are not eligible.
New checking accounts receive standard overdraft coverage after they've been open for 31 days and as long as they remain in good standing. Overdraft limits of up to $1,000 are available based on account type. Customers are assessed a fee of $36 for each overdraft over $50, with a daily limit of three.
Available only for consumer checking accounts, Cornerstone Financial provides customers with up to $1,000 overdraft protection and gives them up to 30 days to bring their account balance into the positive. The credit union charges a $35 fee per transaction, with a limit of five fees per day.
Patriot Federal's Courtesy Pay protection plan covers accidental overdrafts up to $1,000, with a $35 fee per overdraft and a limit of seven fees per day.
Eligible consumer checking account holders are granted overdraft protection with a limit of $500. Customers pay $33 per overdraft, with a daily limit of five overdraft fees.
All but one of the banks listed above charge an overdraft fee. One way to minimize overdraft fees is to link your checking account to another account type at the same bank, like a savings or money market account.
It's not uncommon for banks to charge as little as $5 to $10 to transfer funds from one of your accounts into checking, giving you enough money to cover the payment.
However, you may want to consider working with one of the banks that let you overdraft right away. Naturally, the goal is to always have enough money in your account to cover your expenses, but life happens, and so does the occasional overdraft.
Here's a sample of financial institutions that may be able to save you money.
Rates as of Sep 08, 2024SoFi Checking and Savings
On SoFi's Secure Website .
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Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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On SoFi's Secure Website .
offer alert Cash bonus up to $300 with direct deposit set up (see details when you click 'Open Account') 0.50% Rate info Circle with letter I in it.You can earn the maximum savings APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. To Earn APYWith no fees or minimums and tools designed to maximize your savings, the combo account is a good fit for individuals who want to do most of their banking in one place online. The account offers flexibility to access or move funds, especially if your employer's payroll system allows you to access the bank's early direct deposit benefit.
Disclosure¹ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus when they set up Direct Deposit of at least $1,000 during the Direct Deposit Bonus Period. Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 12/31/24. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.
SoFi members with Direct Deposit can earn 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.50% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 8/27/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
² SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 8/27/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
³ Our account fee policy is subject to change at any time.
⁴ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional
FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at SoFi.com/banking/fdic/terms
See list of participating banks at SoFi.com/banking/fdic/receivingbanks
⁵ We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.
⁶ Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
⁷ Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with direct deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the“30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage.
SoFi® is another bank that won't charge an overdraft fee if you accidentally spend more than is in your account. Once you set up a direct deposit of at least $1,000, the bank will pay up to $50 if there's not enough money in the account to cover a check. Plus, SoFi® offers a new account bonus worth up to $300.¹
