13 Bank have no overdraft in 2022

When you spend more money than is available in your account, you will typically be charged an overdraft fee. As a result, you have a negative balance and could incur a high overdraft fee of up to $35. (sometimes per transaction). 

Those who live paycheck to paycheck are most at risk of running out of money if they don't keep an eye on their bank balance. According to the 2021 FinHealth Spend Report, 43% of vulnerable households with checking accounts report over-drafting in the most recent year, with an average of 9.6 overdrafts. Customers spend over $350 a year for $35 per overdraft because they did not have enough money on hand to fund a transaction, payment, or withdrawal.

In 2020, banks collected $12.4 billion in overdraft fees from customers alone, according to the Financial Health Network's annual spend report.

More and more significant US institutions are either restricting or completely abolishing overdraft fees in reaction to this widespread criticism and to compete with internet banks who have reduced these fees years ago.

You can typically locate a less expensive choice with overdraft protection transfers outside of the financial institutions without any overdraft covering fees.

These are voluntary initiatives that connect your checking account to a different account. A transfer from the second account would be made in response to an overdraft to pay for the transaction. Depending on the provider's rules, the linked account may be a savings account, credit card, line of credit, or even another checking account. This transfer costs about $10 or $12, however it occasionally goes for less. On occasion, the service is free.

Banks that have no overdrafts :

1. Capital One

Capital One announced that it would do away with all overdraft and non-sufficient fund (NSF) penalties for customers of its consumer banking division. Overdraft protection is still free from Capital One.

Capital One, the sixth-largest bank by retail customers in the United States, is the only top-10 retail bank to make this change for all of its consumer banking products.

Richard Fairbank, the founder, and CEO of Capital One remarked that a person's bank account is the foundation of their financial life. It's how people manage their money, get paid, and cover their expenses. A crucial safety net for families, overdraft protection is a useful and practical feature. We are delighted to provide this service without charge.

We began focusing on reimagining banking a long time ago, Fairbank continued. No monthly fees and no minimum balance requirements are already included with our multiple-award-winning checking accounts. A further step in our mission to innovate banking with simplicity and humanity is the elimination of overdraft fees.

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Customers have the option of using overdraft protection or not. On the debut date in early 2022, all clients who are currently enrolled in overdraft protection will be automatically converted to No-Fee Overdraft. Customers who are eligible but are not enrolled may do so at any time. Transactions that would overdraw an account for consumers who are not enrolled will be rejected, and no fees will be charged.

Lauren Saunders, Associate Director, National Consumer Law Center, stated that Capital One's complete abolition of overdraft and NSF fees is a historic moment for American families. "The most vulnerable customers will gain greatly from Capital One's action. We must continue to make the banking system more equitable and inclusive for everyone.

Account-holders receive an annual percentage yield of 0.10% and free use of 70,000+ Capital One®, MoneyPass, and Allpoint® ATMs.

2. Bank of America

Bank of America declared in January that it would reduce its overdraft costs from $35 to $10 per overdraft transaction starting in May. In addition to lowering these charges, the bank will also do away with the $12 Balance ConnectTM service cost that is applied when money is transferred from connected accounts to overdrawn accounts.

3. Citi bank 

Citibank said in February that all overdraft, returned-item, and overdraft-protection costs would be eliminated as of this summer.

With assets of almost $1.7 trillion, Citibank is the first of the "big four" banks to completely do away with overdraft fees. JP Morgan Chase, Bank of America, and Wells Fargo are the other three members of the "big four" banks.

Additionally, Citibank has a Safety Check tool that will transfer any linked Citibank savings account's available funds to pay for overdrafts. With a Citigold or Citi Priority account, the service is free. With other accounts, it costs $10.

Customers may have overdraft protection money automatically moved from a credit line to their checking account if they are authorized for a Checking Plus account.

4. Ally

In 2020, Ally stopped charging overdraft fees in response to COVID-19. Ally paid back the accrued costs at that point, but after that, it chose to stop charging overdraft fees altogether.

You won't be charged if you overdraw your account at Ally. You have six working days to make your account balance positive. Ally will work with you to find a solution if you haven't raised your balance by then, and your account withdrawals can be restricted.

Additionally, you can register for an optional, cost-free overdraft transfer service: In $100 increments, Ally will transfer money from a connected savings or money market account. These transactions are restricted to six withdrawals every statement cycle by this provider.

5. Discover

Customers of Discover can apply for overdraft protection and link a savings account to settle the overdraft for checks, electronic transfers started externally, and online bill payments. Instead of having their transaction declined and then being charged a $30 insufficient funds fee, Discover customers who attempt to make a purchase without overdraft protection will now have their transaction rejected without being charged.

In addition, Discover accounts no longer charge:

• penalties for stopping payments on all accounts.
• excessive withdrawal costs for savings and money market accounts.
• Fees for money market accounts with a minimum balance.

Deposit accounts from Discover previously had no monthly maintenance costs.

Additionally, you can earn benefits with this checking account by spending: Earn 1% cash back on up to $3,000 in monthly debit card transactions. There are more than 60,000 Allpoint® and MoneyPass® ATMs in Discover's free ATM network.

6. Chime

SpotMe is the free overdraft defense solution offered by Chime. You must sign up for this service if you haven't previously since it is optional.

Members who deposit $200 or more directly into their checking accounts each month are eligible. Although the program allows for up to $200 in overdrafts per month, at first you can only withdraw $20 on debit card transactions and cash withdrawals. You might later be qualified for the greater $200 cap.

Your "Chime Account history, direct deposit frequency and quantity, spending activity and other risk-based indicators," according to Chime, will determine if you qualify for this greater limit.

7. Axos

Customers of the online bank Axos Bank Rewards Checking won't be charged monthly or overdraft fees. No minimum balance limitations apply, however, a, $50 deposit is required to create an account. There are additional tiered APY rates, where account holders who meet certain criteria can earn up to 1.25% APY: Use the debit card for at least 10 transactions each month and make a minimum direct deposit of $1,500 into the account each month.

With the current Axos welcome bonus, you can get a $100 bonus by using the promotional code "RC100."

8. Betterment

Customers of Betterment Checking can benefit from this online-only account with no overdraft fees or minimum balance limitations. Additionally, Betterment will cover all of your out-of-network ATM fees, including foreign transaction fees, globally. When account customers spend money at well-known retailers including Dunkin' Donuts, Adidas, Walmart, Sam's Club, and Staples, they automatically receive cash back benefits. Additionally, when you pay your cell phone bill with Betterment's debit card, you'll receive free cell phone insurance.

9. Aspiration

Due to Aspiration's "Pay What is Fair" promise, no unexpected costs, including overdraft fees, will be imposed upon you. As a result, Aspiration customers never pay fees for overdrawing their accounts; yet, this is not a free overdraft service.

According to Aspiration CEO Andrei Cherny, "We are typically able to prohibit the execution of cheques, ATM withdrawals, debit card transactions, or online transfers when our users don't have enough funds in their account to cover them." "Customers are allowed a period to make their accounts positive if there is an inadvertent overdraft on an account that pushes it into the negative."

In other words, if an overdraft charge does manage to go through, you will have a grace period to get your account back to positive.

10. Truist

Truist, a new bank created as a result of the union of Suntrust and BB&T, is to provide two new overdraft-free checking accounts this summer as part of Truist One Banking. Customers who insistently make deposits of $100 or more for two consecutive months will be given a $100 negative balance cushion instead of accruing overdraft penalties.

If you already have a Truist account, you can choose to switch to a Truist One checking account, but you won't be moved over immediately.

According to Arijit Roy, Head of Strategy, Deposits, Small Business and Analytics at Truist, even if you choose not to sign up for Truist One Banking, Truist plans to eliminate the majority of overdraft fees for current accounts as well, including for returned items, negative account balances, and overdraft protection transfer fees.

11. Wealthfront

Customers can open a Wealthfront Cash Account with no account or overdraft fees. On all account balances, you can earn 0.10% APY and get free use of 19,000 ATMs. By enabling account members to move their surplus funds (for free) into an associated Wealthfront investing account, Wealthfront also makes it simple to invest money more quickly.

12. Alliant

There are no monthly service fees, minimum balance requirements, or overdraft fees associated with Alliant Credit Union High-Rate Checking. Additionally, account customers have access to more than 80,000 free ATMs countrywide and the checking account offers a higher-than-average 0.25% APY on all balances.

13. Wells Fargo

Wells Fargo, which made its announcement on the same day as Bank of America, will reduce some of the overdraft fees starting in March, but not entirely. When a linked account covers an overdraft, you won't be charged any fees, but you'll only have 24 hours to get your balance back to zero if you overdraw.

While this change is an improvement, as with Bank of America, it does feel mediocre in comparison to other institutions on this list.