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6 Banks With Highest Overdraft Limit

Review Updated
Dana George
By: Dana George
Dana George
Dana George
Writer

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.

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Our Banking Expert

Ashley Maready
Check IconFact Checked Ashley Maready
Ashley Maready
Ashley Maready
Writer and Editor

Ashley 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.

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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.

What is an overdraft limit?

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.

Banks with the highest overdraft limits

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.

Ratings Methodology
Rates as of Aug 24, 2024

Citizens Access® Savings

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Member FDIC.
Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. 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.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. 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.
 = Best
= Excellent
= Good
= Fair
= Poor
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APY
4.50%
Min. To Earn APY
$0.01
  • Competitive APY
  • No account fees
  • Unlimited transfers and withdrawals
  • FDIC insured
  • No wire transfers (inbound or outbound)
  • No checking account offered at same bank
  • No ATM access
  • No branch access; online only

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.

1. Citizens Bank: Overdraft limit up to $500

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.

Ratings Methodology
Rates as of Aug 24, 2024

Alliant High Rate Checking

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Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. 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.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. 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.
 = Best
= Excellent
= Good
= Fair
= Poor
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APY
0.25%
Min. To Earn APY
$1
  • No monthly fees or overdraft fees
  • No monthly minimum balance requirements
  • Network of 80,000 ATMs
  • Reimburses up to $20 ATM fees
  • No monthly fees, overdraft fees, and no monthly minimum balance requirements
  • No physical branches
  • Higher APY available at other financial institutions
  • Need to meet certain requirements to receive the dividend

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.

2. Alliant Credit Union: Overdraft limit up to $600

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.

3. Synovus Bank: Overdraft limit up to $1,000

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.

4. Cornerstone Financial Credit Union: Overdraft limit up to $1,000

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.

5. Patriot Federal Credit Union: Overdraft limit up to $1,000

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.

6. Crews Bank & Trust: Overdraft limit up to $500

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.

Other banks for your consideration

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.

Ratings Methodology
Rates as of Aug 24, 2024

SoFi Checking and Savings

Open Account for SoFi Checking and Savings

On SoFi's Secure Website.

Member FDIC.
Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. 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.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. 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.
 = Best
= Excellent
= Good
= Fair
= Poor
Open Account for SoFi Checking and Savings

On SoFi's Secure Website.

offer alert
Cash bonus up to $300 with direct deposit set up (see details when you click 'Open Account')
APY
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 APY
$0
  • Competitive APY
  • FDIC insured (up to $2M with opt-in to SoFi Insured Deposit Program)⁴
  • Welcome bonus up to $300¹
  • No monthly service or overdraft fees³
  • Early access to direct deposits⁶
  • Savings and investing tools
  • Wide range of financial products
  • Cash back on debit card purchases at select retailers
  • Combo account only; no stand-alone savings or checking
  • Overdraft protection⁷ tied to monthly deposit minimum
  • No local branches or in-person support

With 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.



SoFi disclosure:

¹ 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 4.60% 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 4.60% 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 10/24/2023. 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 4.60% 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. Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. 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.

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SoFi Checking and Savings (member FDIC)

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

Ratings Methodology
Rates as of Aug 24, 2024

Chime Checking Account

Open Account for Chime Checking Account

On Chime's Secure Website.

Member FDIC.
Rating image, 3.50 out of 5 stars.
3.50/5 Circle with letter I in it. 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.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 3.50 out of 5 stars.
3.50/5 Circle with letter I in it. 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.
 = Best
= Excellent
= Good
= Fair
= Poor
Open Account for Chime Checking Account

On Chime's Secure Website.

APY
0%
Min. To Earn APY
$0
  • Get direct-deposited funds up to two days early
  • Get instant paychecks with MyPay
  • No monthly maintenance or overdraft fees
  • No minimum balance requirement
  • No foreign transaction fees
  • No ChexSystems check to open an account
  • Free peer-to-peer (P2P) payments
  • Overdraft up to $200 without fees with SpotMe
  • Must open a checking and savings account together
  • No physical branch locations
  • Mediocre customer service

Chime Checking is a fee-free account that makes it easy to get paid early. It's a great option for folks worried about getting hit with surprise fees -- Chime has none of those. It's a great checking account for beginners wanting simplicity.

Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank or Stride Bank, N.A.; Members FDIC.

*Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.

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Chime Checking Account

If you can make monthly deposits of $200 or more and activate your Chime Visa debit card, you qualify for the bank's SpotMe® program. Once you're enrolled, the program offers an automatic overdraft limit of $20 that may eventually be increased to $200.

Ratings Methodology
Rates as of Aug 24, 2024

Ally Spending Account

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Member FDIC.
Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. 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.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. 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.
 = Best
= Excellent
= Good
= Fair
= Poor
Read Review
APY
up to 0.25%
Min. To Earn APY
$1
  • Strong online and mobile tools
  • No monthly maintenance or overdraft fees
  • Monthly ATM fee reimbursements
  • Competitive APY
  • Early direct deposit
  • Higher APY available at other financial institutions
  • No physical locations
  • No cash deposits

The Ally Spending Account is an appealing option for those who are comfortable managing their money online. Its monthly ATM fee reimbursements give you the freedom to access your cash wherever you need to. That, plus its APY, means you should only make money with this account.

Ally Spending Account

Ally Bank charges no overdraft fees, but does offer two overdraft protection options. The first allows you to transfer funds from a linked Ally savings or money market account into your checking account. The second is called "CoverDraft" and provides up to $250 in overdraft coverage if you set up and receive a qualifying direct deposit of at least $250 for two months in a row.

Pros and cons of high overdraft limits

Few products or services are perfect, so here we offer both the pros and cons of high overdraft limits.

Pros

  • Higher chance your payments will go through. A high overdraft limit may mean the difference between a payment being denied and a payment being covered.
  • Less embarrassment over denied payments. A high limit may also prevent you from being embarrassed, especially if the overdraft is due to a payment made to a local merchant or company you regularly do business with.

Cons

  • Risk of overspending. Knowing you have a high overdraft limit could lead to overspending unless you're careful.
  • Fees! Fees can quickly add up. Overdrafts are a major source of income for some banks, and costly fees can set you back for months.
  • ChexSystems reports. Unpaid negative balances may be reported to ChexSystems, making it difficult to open an account at another bank or credit union.

Fees associated with overdrafts

As mentioned, overdraft fees can cost hundreds of dollars a day, depending on how many overdrafts occur. To make yourself right with your financial institution, you must repay the amount it covered, plus all associated fees.

Your best bet is to always keep an eye on your checking account, even if that means conducting a two-minute review each day. Life gets busy, and it's easy to lose track of how much money you have available at any given time. However, overdrafts are less likely to happen when you faithfully check your balance against outstanding payments.

Overdrafts are frustrating, but they don't have to spoil your finances. In addition to working with a safe bank, the goal is to find one that provides great coverage and low fees.