8 Best Banks That Don't Charge Overdraft Fees

1. Ally Bank

Ally Bank is an online-only bank that plans to abolish overdraft fees on all accounts by 2021. It provides spending account holders with two options for dealing with overdrafts.

2. Discover Bank

If a transaction reduces the amount to less than $0.01, Discover Bank's overdraft protection service immediately transfers funds from a linked Discover checking, savings, or money market account.

3. Axos

Axos is an online bank that offers a variety of checking accounts, some of which have no overdraft fees, including Essential Checking, Rewards Checking, and First Checking.

4. Fidelity

Cash Management is Fidelity's brokerage account that functions like a checking account. Use the Cash Manager to self-fund overdraft protection on any Fidelity funding account for free.

5. Betterment

Betterment handles overdrafts differently. Betterment tells the merchant that the account has insufficient money to pay the purchase and reverses the transaction, unlike many banks. 

6. Wealthfront

Wealthfront does not charge overdraft fees on its Cash Account, which is a hybrid checking and savings account. 

7. Alliant Credit Union

Alliant is a credit union that does not charge overdraft or non-sufficient funds fees on its checking accounts. 

8. Capital One

Overdraft fees have been eliminated on all Capital One customer accounts, including 360 Checking.