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Earning Interest

The Best High Yield Checking Accounts in 2019

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

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Checking accounts are like a pair of khakis slacks: You should have at least one, but shopping for them is a chore. You know you need a checking account—preferably one without fees—but most people think it’s not going to yield more than a token amount in interest.

These high yield checking accounts break this tired paradigm, featuring sky-high interest rates that can put even the best savings accounts to shame. In this article, we’ll help you make an informed decision about whether one of these high yield checking accounts are right for you and your financial goals.

How we picked the best high yield checking accounts

We followed a strict approach when selecting these accounts. We used the online rate finder for FDIC- or NCUA-insured rewards checking accounts on DepositAccounts.com, another LendingTree.com-owned site, to list the top 10 high yield checking accounts with the highest rates, assuming a deposit amount of $100.

Credit unions were only included if they allow membership to anyone (such as by making a donation to their chosen charity). Finally, we filtered out any high yield checking accounts that are not available nationwide, or that carry a health rating of below a B.

The Best High Yield Checking Accounts in 2019

Consumers Credit Union (IL) — Free Rewards Checking

  • Minimum amount to open: $0
  • Requirements to earn the high APY: You must complete the following four things each month:
    1. complete at least 12 signature-based debit purchases,
    2. receive at least one direct deposit, ACH debit, or pay one bill through their free bill payment system,
    3. log into your online banking account, and
    4. be signed up for eStatements.
    5. spend $1,000 or more with a Consumers Credit Union Visa credit card each month.
  • Monthly service fee: No monthly service fee.
  • ATM fees: If you meet the requirements to earn the high APY, you won’t pay any ATM fees. However, if you don’t, you’ll have to pay $1.00 for each ATM or debit card withdrawal after your sixth ATM/debit card withdrawal of the month.
  • ATM refunds: You are eligible for refunds on all ATM fees as long as you meet the requirements to earn the highest APY.

LEARN MORE Secured

on Consumers Credit Union (IL)’s secure website

NCUA Insured

La Capitol Federal Credit Union — Choice Checking

  • Minimum amount to open: $50
  • Requirements to earn the high APY: Make at least 25 debit purchases per month.
  • Monthly service fee: $8; waived if you either have a balance of at least $1,000 or make 20 non-ATM debit card transactions each month.
  • ATM fees: None
  • ATM refunds: Up to $25 in out-of-network surcharges (the money the ATM’s owner charges you) per month if you are signed up for eStatements

LEARN MORE Secured

on La Capitol Federal Credit Union’s secure website

NCUA Insured

TAB Bank — Kasasa Cash Checking

  • Minimum amount to open: $0
  • Requirements to earn the high APY: You must have at least 1 direct deposit, ACH payment, or bill pay transaction posted to the account during each billing cycle and at least 15 debit card purchases.
  • Monthly service fee: None
  • ATM fees: None
  • ATM refunds: Up to $15 every month (if you meet the qualifications to earn the highest APY)

LEARN MORE Secured

on TAB Bank’s secure website

Member FDIC

T-Mobile — T-Mobile Money Checking Account

  • Minimum amount to open: $0
  • Requirements to earn the high APY: You must be enrolled in a qualifying T-Mobile wireless plan, be registered for perks with your T-Mobile ID, and have a minimum of $200 in qualifying deposits.
  • Monthly service fee: None
  • ATM fees: None
  • ATM refunds: Up to $10 every month

LEARN MORE Secured

on T-Mobile Money’s secure website

Member FDIC

Orion Federal Credit Union — Premium Checking

  • Minimum amount to open: $0
  • Requirements to earn the high APY: You must make electronic deposits (which can be either a direct deposit, mobile deposit, or an electronic transfer from another financial institution) of at least $500 each month, in addition to making at least eight signature-based debit card transactions each month.
  • Monthly service fee: $5, which is waived if you meet the requirements to earn the highest APY.
  • ATM fees: None for ATM withdrawals in Orion’s network, $1 for non-Orion ATMs
  • ATM refunds: Up to $10 a month for fees charged by non-Orion financial institutions.

LEARN MORE Secured

on Orion Federal Credit Union’s secure website

NCUA Insured

Partner Colorado Credit Union — High-Interest Checking

  • Minimum amount to open: $0
  • Requirements to earn the high APY: You’ll need to do three things each month:
    1. use your debit card to make at least 20 signature-based purchases of $5 or more,
    2. be signed up for eStatements, and
    3. log into your Online or Mobile Banking account.
  • Monthly service fee: $5; waived if you meet the requirements to earn the high APY.
  • ATM fees: None.
  • ATM refunds: All ATM surcharge fees are refunded.

LEARN MORE Secured

on Partner Colorado Credit Union’s secure website

NCUA Insured

One American Bank — Kasasa Cash

  • Minimum amount to open: $50
  • Requirements to earn the high APY: You’ll need to do the following three things for each qualification cycle (be aware: their qualification cycles are not the same thing as a calendar month):
    1. complete at least 12 debit purchases of $5.00 or more,
    2. be enrolled in eStatements, and
    3. log into your Online Banking account.
  • Monthly service fee: No monthly service charges.
  • ATM fees: None
  • ATM refunds: Up to $25 per qualification cycle if you meet the requirements to earn the high APY.

LEARN MORE Secured

on One American Bank’s secure website

Member FDIC

Heritage Bank — eCentive Account

  • Minimum amount to open: $100
  • Requirements to earn the high APY: Each month you’ll need to make 10 or more debit card payments and/or purchases (excluding ATM transactions), have at least one direct deposit or ACH deposit, and receive monthly electronic bank statements.
  • Monthly service fee: None
  • ATM fees: $1 per transaction for ATMs not in the credit union’s network
  • ATM refunds: Up to $25 per qualification cycle if you meet the requirements above.

LEARN MORE Secured

on Heritage Bank’s secure website

Member FDIC

Evansville Teachers Federal Credit Union — Vertical Checking

  • Minimum amount to open: $0
  • Requirements to earn the high APY: You must complete the following things each month:
    1. have at least one direct deposit into your account,
    2. be enrolled in e-statements,
    3. use your debit card to make at least 15 purchases per month, and
    4. log on mobile or online banking once.
  • Monthly service fee: None.
  • ATM fees: None.
  • ATM refunds: Up to $15 of out-of-network ATM fees per month.

LEARN MORE Secured

on Evansville Teachers Federal Credit Union’s secure website

NCUA Insured

Dover Federal Credit Union — Kasasa Cash Account

  • Minimum amount to open: $100
  • Requirements to earn the high APY:  You must make at least 12 debit card purchases in each monthly qualification cycle. In addition, you must be enrolled and agree to receive eStatements and enrolled in online banking, which you must log into at least one time per month.
  • Monthly service fee: None
  • ATM fees: $0s
  • ATM refunds: Up to $25 in refunds of third-party ATM fees per monthly qualification cycle.

LEARN MORE Secured

on Dover Federal Credit Union’s secure website

NCUA Insured

First Financial Credit Union — First Secure Checking

  • Minimum amount to open: $0
  • Requirements to earn the high APY: Make at least 15 debit card purchases a month
  • Monthly service fee: $5 (waived if you maintain a balance of $2,500)
  • ATM fees: None
  • ATM refunds: Up to $10 a month for third-party ATM fees.

LEARN MORE Secured

on First Financial CU (IL)’s secure website

NCUA Insured

Great Lakes Credit Union — Free Checking

  • Minimum amount to open: $0
  • Requirements to earn the high APY: You must complete the following actions each month:
    1. have at least $500 in direct deposits into the account,
    2. make at least 10 signature-based debit card purchases of $100 or more,
    3. be signed up for eStatements, and
    4. use Bill Pay at least once or log into Mobile Banking at least once.
  • Monthly service fee: None
  • ATM fees: $2.00 for non-Great Lakes Credit Union ATMs
  • ATM refunds: $10 per month if you meet the requirements to earn the high APY.

LEARN MORE Secured

on Great Lakes Credit Union’s secure website

NCUA Insured

How are these banks able to offer such a high APY?

Did you notice that most of the institutions offering high yield checking accounts tend to be smaller names that you’ve probably never heard of? It turns out there’s a good reason for that, and it all has to do with the Dodd-Frank Act, a set of sweeping financial regulations passed by Congress in the wake of the Great Recession.

Back when the Dodd-Frank Act was passed in 2010, a tiny legislative nugget called the Durbin Amendment was included in the text. This amendment limited the swipe fees that big banks can charge merchants for each purchase that one of their customers makes using a debit card.

Suddenly, big banks (defined as institutions with at least $10 billion in assets) could only charge half as much per swipe as they had been doing, and swipe fees became a lot more lucrative for smaller banks and credit unions instead.

That’s why so many smaller institutions have strict rules requiring you to use your debit card each month. According to the Federal Reserve, in 2016 smaller banks earned anywhere from 18 to 65 cents for each debit card swipe, compared to a maximum of just 22 cents plus 0.05% of the purchase price for larger banks.

Say, for example, a smaller bank requires you to make 10 debit transactions per month, and earns 65 cents from each transaction. Your bank would then earn $6.50 from your spending that month.

That is where the high interest rates come from. It’s also why the high interest rates are generally capped to smaller balances, so that you don’t earn too much money and negate all the swipe fees that the bank earns.

Is it worth meeting requirements to go after the high APY?

Some of these high yield checking accounts have a lot of requirements.

If you prefer to use debit cards, chances are you’ll be able to easily meet the minimum debit swiping requirements for most of these accounts. On the other hand, if you’re a cash or credit card junkie, you may find yourself frequently worrying at the end of the month about whether or not you’ve met the minimum debit swiping requirements. In this case, a high yield checking account might not be right for you.

Another thing to consider is that many of these banks require you to make a signature-based debit transaction, rather than a PIN-based debit transaction for it to count. Unfortunately, this is slightly less secure than using the PIN-based payment method.

You’ll also need to avoid making a rush of charges at the end of the month to meet the spending requirements. That’s because banks and credit unions will usually only count a charge that has finished posting to your account towards meeting the monthly swiping requirement. It can take a few days for debit swipes to post to your account, so it’s better to get these charges in early to make sure they post to your account in time to count.

The good news is that checking accounts aren’t designed to hold significant amounts of cash. That’s what a savings account is for, and you can still earn pretty good interest rates with a high yield savings account (although still nowhere close to these high yield checking accounts).

If you’re going to keep a smaller deposit in your checking account anyways, why not earn as much as you can from it—especially if you know you’ll have an easy time meeting the requirements?

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

James Ellis
James Ellis |

James Ellis is a writer at MagnifyMoney. You can email James here

Advertiser Disclosure

College Students and Recent Grads

Top Checking Accounts for College Grads

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Top Checking Accounts for College Grads
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For many college students, their default banking option while in school is a student checking account, which is typically free. Unfortunately, when you graduate you lose those benefits. Many student checking accounts will begin to charge you monthly maintenance fees unless you meet certain requirements.

So, where do you go from there?

Few young adults would turn to their parents for fashion or dating advice and, yet, one of the most common ways we’ve found young people choose their bank account is by going with whichever bank their parents already use. This could be a bigger faux pas than stealing your dad’s old pair of parachute pants.

The bank your parents use may carry fees or have requirements that don’t meet your lifestyle or budget, and make accounts expensive to use.

But where do you even begin to choose the right checking account?

When you’re nearing graduation, start planning your bank transition.

Many banks send a letter in the mail a few months prior to your expected graduation date informing you that your student checking account is going transition to a non-student account. If you’re not careful and you disregard the letter, you may be transitioned into an account that charges a fee if you don’t meet certain requirements.

You can always call the bank and ask to switch to a different account or you can choose a new account that offers more benefits, like interest and ATM fee refunds.

Account Name

Monthly Fee

Minimum Monthly Balance

Amount to Open

ATM Fee Refunds

APY

Aspiration Spend and Save Account$0$0$10Unlimited2.00% APY on the balance of the save portion in your account.
Empower Checking Account$0$0$0One out-of-network ATM withdrawal per month1.90%
nbkc bank Personal Account$0$0$5$51.01% APY on all balances
Atlantic Stewardship Bank Cash Back Checking$0$0$1UnlimitedDoes not earn interest. But it does offer 0.50% cash back if you meet requirements
Radius Bank Radius Hybrid Checking$0$0$100Unlimited1.00% on balances from $2,500 to $99,000
One American Bank Kasasa Cash Account$0$0$0None, member of MoneyPass network3.50% APY if requirements are met

0.01% APY if requirements are not met
Orion Federal Credit Union Premium Checking$0, provided you meet qualifications. Otherwise $5$0$0$10 per month4.00% on balances up to $30,000, 0.05% on portion of balances greater than $30,000
TAB Bank Kasasa Cash Rewards Checking$0$0$0Up to $15 in ATM fees reimbursed if minimum account requirements are met4.00% APY on balances up to $50,000
La Capitol Federal Credit Union Choice Plus Checking$2, waived if you enroll in eStatements$0$50Up to $25 per month4.25% APY on balances up to $3,000

2.00% APY on balances $3,000-$10,000

0.10% APY on balances over $10,000 (or on all balances if you don’t make 15 or more posted non-ATM debit card transactions per month)

The 5 key things you should look for in a checking account

When you’re shopping around for a new checking account, there are several things you should look for to ensure you’re getting the most value from your account:

  1. A $0 monthly fee: Sometimes banks may say they don’t charge a monthly fee but read the fine print — they may require a minimum monthly balance in order to avoid it. There are plenty of free checking accounts available for you to open, so there’s no reason to stay stuck with an account that charges a monthly fee. Take note, as some accounts may require you to meet certain criteria to maintain a free account like using a debit card, enrolling in eStatements or maintaining a minimum daily balance.
  2. No minimum daily balance: Accounts without minimum daily balances mean you can have a $0 balance at any given time. This may allow you to have a free account without meeting balance requirements — although other terms may apply to maintain a free account.
  3. APY: Annual Percentage Yield is the total amount of interest you will earn on balances in your account. Opening an account that earns you interest on your balance is an easy way to be rewarded for money that would typically sit without earning anything. You should definitely aim to earn a decent APY on your savings account.
  4. ATM fee refunds: You may not be able to access an in-network ATM at all times, so accounts providing ATM fee refunds can reimburse you for ATM fees you may incur while using out-of-network ATMs. Those $3 or $5 charges add up!
  5. No or low overdraft fees: Most banks charge you an overdraft fee of around $35 if you spend more money than you have available in your account. Therefore, it’s a good idea to choose an account that has no or low overdraft fees.

Top overall checking accounts for college grads

The best checking accounts will have a number of features that are both simple and low cost. For the top overall checking accounts, we chose accounts that have no monthly service fees, no ATM fees, refunds for ATM fees from other banks, interest earned on your deposited balances and with strong mobile banking apps. While there is no all-inclusive account that contains every benefit, the accounts below are sure to provide value whether you want a high interest rate, unlimited ATM fee refunds or 24/7 live customer support.

1. Aspiration Spend and Save Account

The Aspiration Spend and Save Account offers a wide range of benefits for account holders and has few fees. The $10 amount to open is fairly low, and once you open your account there is no minimum monthly balance to maintain — though the more money you keep in your account, the more interest you’ll earn. Keep in mind that you earn the 2.00% APY on the funds you move to savings side of your account.

Another helpful feature is unlimited ATM fee refunds. That means you can either use in-network ATMs (filter by checking “SUM”) and avoid fees, or use any other ATM and be reimbursed for any fees incurred at the end of the month. If you’re looking for an interest checking account with no ATM fees, the Aspiration Spend and Save Account is a solid choice.

LEARN MORE Secured

on Aspiration’s secure website

2. Empower Checking Account

Empower is the mobile banking division of Evolve Bank & Trust. The Empower Checking Account currently offers a very attractive 1.90% APY on your full checking account balance, with neither a minimum deposit to open nor any need to maintain a minimum balance. Empower gives you access to over 25,000 fee-free ATMs nationwide, however you’ll only get one out-of-network ATM fee reimbursed per month. One other drawback: There are no check-writing capabilities with this account.

LEARN MORE Secured

on Empower’s secure website

Member FDIC

3. nbkc bank Personal Account

nbkc has several locations in the Kansas City region. Anyone can sign up for an account, however. This just means if you don’t reside nearby, you’ll have to rely on their online banking system.

The nbkc Personal Account earns interest on your balances and has no hidden fees. Typical checking accounts charge overdraft fees and stop payment fees, among others, but nbkc doesn’t.

The two fees that may apply are for less common transactions — $5 to send domestic wires and $45 to send or receive international wires.

You can use 32,000+ MoneyPass® ATMs in the U.S. for free, and if you use out-of-network ATMs you’ll be reimbursed up to $12 a month. This account is a good choice if you want a checking account that has minimal fees and earns interest.

LEARN MORE Secured

on nbkc bank’s secure website

Member FDIC

Top free checking accounts for college grads

Free checking accounts are a great way to save on the monthly service fees many banks charge if you don’t meet deposit or balance requirements. The checking accounts listed below are all free, and if there are requirements, they’re minor like enrolling in eStatements or using a debit card. These accounts can be a good choice if you often have a fluctuating or low account balance and don’t want to worry about maintaining the requirements big banks impose to keep their accounts free.

1. Atlantic Stewardship Bank Cash Back Checking

Atlantic Stewardship Bank is headquartered in New Jersey and donates 10% of its profits annually to Christian and nonprofit organizations. Its Cash Back Checking account has a minor opening deposit and basic requirements for you to meet to get the added perks.

*When you make 12 debit card transactions each cycle and enroll in online banking and eStatements, you can receive unlimited ATM fee refunds and the chance to earn rewards at 0.50% cash back on debit card purchases.

LEARN MORE Secured

on Atlantic Stewardship Bank’s secure website

Member FDIC

2. Radius Bank Radius Hybrid Checking

Radius Bank is a community bank headquartered in Boston. The Radius Hybrid Checking account is free as long as you open the account with the required deposit and meet three simple requirements: Enroll in online banking, receive eStatements and choose to receive a debit card. Unlike other checking accounts that require you to make a certain number of debit card transactions a month, Radius Bank does not. In addition to simple requirements, there are unlimited ATM fee refunds at the end of each statement cycle.

LEARN MORE Secured

on Radius Bank’s secure website

Member FDIC

3. One American Bank Kasasa Cash Account

One American Bank may be a tiny community bank based in Sioux Falls, SD, but its Kasasa Cash Account packs a big punch. Available nationwide, this checking account earns an impressive 3.50% APY on balances up to $10,000. Best of all, the account is totally free, and as a member of the MoneyPass ATM network, One American Bank gives you fee-free access to thousands of ATMs nationwide. Kasasa accounts are a special class of bank product that help smaller banks compete against larger rivals by providing high-yielding rates and other features desired by consumers.

To earn your Kasasa reward APY, for each monthly qualification cycle simply do the following: Make at least 12 debit card purchase transactions of at least $5.00 each that post and settle to your account; receive electronic bank statements, account notices and disclosures; and log in to online banking at least one time.

LEARN MORE Secured

on One American Bank’s secure website

Member FDIC

 

Check out our full list of the best free checking accounts.

Top high-yield checking accounts for college grads

Since most checking accounts offer little to no interest, high-yield checking accounts are a great way for you to maximize the money that typically would just sit in your account without earning interest. These accounts often offer interest rates that fluctuate depending on how much money you have in the account. However, in order to earn interest, there are some requirements that you may have to meet such as making a certain number of debit card transactions and enrolling in eStatements.

1. Orion Federal Credit Union Premium Checking

An excellent choice for recent graduates looking for a high-yield checking account is Orion Federal Credit Union’s Premium Checking account, which promises customers 4.00% APY on balances up to $30,000.

You also need to keep in mind that because Orion FCU is a credit union, you have to jump through some additional hoops to access the high APY:

  • Pay $10 to one of five organizations approved by Orion to become eligible for membership in the credit union
  • Deposit $25 in a special savings account with Orion to officially become a member
  • Make an electronic deposit of at least $500 every month into your Premium Checking account
  • Make at least 8 signature based debit card transactions — not PIN-code based debit transactions — each month.

LEARN MORE Secured

on Orion Federal Credit Union’s secure website

NCUA Insured

2. TAB Bank Kasasa Cash Rewards Checking Account

Based in Ogden, UT, TAB Bank’s Kasasa Cash Checking account is a great choice for recent graduates. You can earn a very competitive 4.00% APY by meeting a few simple requirements: Have at least one direct deposit, ACH payment, or bill pay transaction posted to the account during each billing cycle; and make at least 15 debit card purchases. Even better, the bank will reimburse up to $15 in ATM fees per month from making withdrawals outside their ATM network.

LEARN MORE Secured

on TAB Bank’s secure website

Member FDIC

3. La Capitol Federal Credit Union Choice Plus Checking

This checking account has a $2 monthly service fee, which can easily be waived if you enroll in eStatements.

*While the terms state a minimum balance requirement of $1,000 and a low balance fee of $8, the fee can be waived if you make 15 or more posted non-ATM debit card transactions per month.

To earn the top interest rate on your checking balance, you just need to make at least 15 or more posted non-ATM debit card transactions per month. There are numerous surcharge-free La Capitol ATMs for you to use, and after signing up for eStatements you can receive up to $25 per month in ATM fee refunds when you use out-of-network ATMs.

LEARN MORE Secured

on La Capitol Federal Credit Union’s secure website

NCUA Insured

Check out our full list of the best high-yield checking accounts.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

James Ellis
James Ellis |

James Ellis is a writer at MagnifyMoney. You can email James here

Advertiser Disclosure

Best of

Best Checking Accounts With No Overdraft Fees

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If you’ve ever spent more money than you had in your checking account and got slammed with overdraft fees, you know how quickly they can drain your wallet. You might not even realize you’ve overdrawn your account and keep racking up additional charges before it hits you.

Tired of worrying about overdraft fees? We’ve combed our database to find banks that either don’t charge overdraft fees, provide a simple, no-charge method of overdraft protection, or decline transactions so you don’t overdraw in the first place.

The best checking accounts with no overdraft fees in September 2019

*Simple customers can set up a linked savings account in which their money earns 2.02% APY. Because transfers between these two accounts are instantaneous and unlimited in number, some might consider this checking account to earn the 2.02% APY.
**Aspiration’s Spend and Save account is broken into two linked accounts—a spending account which earns no APY and a savings portion which earns 2.00% APY. Transfers between the accounts are instantaneous and unlimited in number.

Axos Bank Rewards Checking

Rewards Checking - 3 QualificationsThis rewards checking account from Axos Bank  has no overdraft or non-sufficient funds fees. Beyond that, the account grants up to 1.25% APY in tiers based on the following requirements:

  • Monthly direct deposits of $1,000 or more earns 0.42%
  • Using your debit card 10 times per month (provided those transactions are at least $3 each) earns an additional 0.42%
  • Using the debit card 15 times per month earns yet another 0.42%

The account’s APY, combined with its lack of maintenance fees and required minimum monthly balance, makes it an attractive option for high-frequency users.

Learn More Secured

on Axos Bank’s secure website

Member FDIC

nbkc bank Personal Account

Personal AccountBased in the Kansas City metro area, this bank offers customers nationwide online access to its Personal checking account. For a mere $5 opening balance, you get a checking account with complimentary online banking, a box of paper checks, bill pay, e-statements and more — and most importantly for this list, there are absolutely zero overdraft fees.

While using any of the approximately 32,000 ATMs in the bank’s network is free, you will have to pay whatever ATMs outside of its network charge per use. But nbkc commits to reimbursing $12 of those fees every month, so that should take some of the sting out.

Learn More Secured

on nbkc bank’s secure website

Member FDIC

Simple’s Safe-to-Spend checking features

Simple Checking w/o Protected Goals AccountLike Axos Bank, Simple’s checking account doesn’t charge for overdraft fees or returned item fees. There are no minimums, no monthly fees, and you get access to 40,000 fee-free ATMs.

Simple’s an online-only bank built with mobile in mind, meaning that while you can access most of its features from your computer, the bank recommends you conduct your business via its smartphone app.

Overall, Simple offers a different kind of banking experience, as it provides tools to help you manage your money. With its “Safe-to-Spend” program, Simple takes into account any upcoming bills or scheduled transfers you have, and does the math and tell you what you can afford to spend. You can also track your financial goals within its mobile app.

LEARN MORE Secured

on Simple’s secure website

Chime spending account

Checking AccountFintech app developer Chime doesn’t charge customers overdraft fees for a very simple reason — it doesn’t allow people to overdraw their accounts in the first place. Like some of the other banks on this list, Chime will decline a transaction that would plunge a customer’s account into a negative balance.

As with other online-only banks, you sacrifice the convenience of being able to stroll strolling into a local branch for the elimination of fees charged by traditional banks. The lone exception is a $2.50 for over-the-counter cash withdrawals or using an ATM not part of its 38,000 machine network.

Learn More Secured

on Chime’s secure website

Member FDIC

Aspiration Spend and Save Account

Aspiration AccountIf you’re willing to take a risk on a non-traditional bank that charges zero fees, then look no further than the Aspiration Spend and Save account. Online-only bank Aspiration markets itself as a financial institution for the globally-conscious client, and as part of their ethos refuses to charge fees for anything — including overdrafts.

You do need to deposit an initial $10 to open the account, but once you’re set up the only fees you pay are the ones you voluntarily give to Aspiration, 10% of which are donated to charity. Even better, the account boasts a 2.00% APY and free access to every ATM in existence.

Learn More Secured

on Aspiration’s secure website

Ally Bank Interest Checking Account

Interest Checking AccountThere is no overdraft fee when you have an Ally Interest Checking account, if you enroll in overdraft protection. You can enroll in overdraft protection by linking an Ally savings or money market account to your checking account, and funds will be moved from the linked account to the checking account in $100 increments.

If you choose not to enroll in overdraft protection, Ally charges a once-a-day overdraft fee of $25. That means if you have more than one overdraft item in a single day, the most you’ll be charged is $25 – you won’t get charged a fee every time an overdraft occurs. Of course, Ally will continue to charge you this $25 fee each day your account balance remains negative, so it’s in your best interest to rectify the overdraft as soon as possible.

On the plus side, there aren’t any maintenance fees, there’s no minimum to open an account, and there are no fees incurred when transferring money to a non-Ally bank account.

Learn More Secured

on Ally Bank’s secure website

Member FDIC

Fidelity Cash Management Account

Cash Management AccountThe Fidelity Cash Management Account promises “all the features you need from a traditional checking account, without the bank fees.” Fidelity holds true to this promise with no overdraft fees, and opts to decline transactions that would put you in overdraft by default.

However if you enroll in the account’s free Cash Manager program, you can link a savings or brokerage account to your cash management account. Funds will automatically be transferred (up to $99,999.99 per day) to cover a pending transaction if you don’t have enough in your account, but there’s no option to open a line of credit (an overdraft option we’ll discuss later).

Learn More Secured

on Fidelity’s secure website

Member FDIC

Chase Secure Checking

Chase Premier Plus CheckingThis no-frills checking account from one of the nation’s biggest banks prevents overdraft fees by simply denying any troublesome transactions that would put your balance in the negative. But even if you should somehow manage to spend your way into the red, for example by paying for a restaurant meal then adding a tip on the slip after the meal transaction was already approved, this account has you covered. Chase will pay the overdraft amount without charging a fee.

Keep in mind, this is a basic option suitable only for someone who doesn’t care about earning interest or writing paper checks—neither of which are available with this account. You also have to pay an unavoidable $4.95 monthly fee. However if you want a checking account with a major bank that doesn’t charge an overdraft fee, this is a great option.

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What happens if you incur multiple overdraft fees in a day?

At many banks, overdraft fees aren’t always a simple one-time charge. If you aren’t paying attention, you could keep charging your debit card for multiple transactions before realizing you’ve been spending money you don’t have. Depending on the bank’s policy, each overdraft instance may incur its own fee, and there are varying limits on how many fees a customer can get hit with in a single day. Wells Fargo, for example, charges an overdraft fee of $35, with a cap of three charges per day, meaning a customer could be on the hook for up to $105 in fees in one day.

Avoid paying triple-figure fees by knowing when your checking account is running low or by taking swift action once you realize you’re in overdraft territory. The best way to do this is to sign up for account alerts with your bank. Many financial institutions will alert you via email or text (or both) if your account’s balance falls below a certain amount.

Remember, you may think you’re safe but have failed to take into account automatic payments set up for expenses such as utility bills, Netflix, etc. Make sure you keep more than you think you need in your checking account, if possible.

Why you might want to opt out of overdraft protection

Plenty of banks provide overdraft protection services to help provide support to customers who find themselves in an overdraft situation. These banks usually offer protection in one of the following ways:

  • Linking another account to your checking account. Some banks, including Axos and Ally on this list, offer an overdraft protection service where you link a savings or money market account to your checking account. If you make a transaction that would cause an overdraft, money from this backup account would transfer to your checking account to cover the cost.
  • Offering an overdraft line of credit. If you make a purchase that exceeds the amount of money in your account, the financial institution will cover the amount you owe and treat that sum as a loan, on which you’ll have to pay interest and (probably) a fee.

Of the two methods, linking your checking account to another account presents less risk. Taking an overdraft line of credit means paying interest, and if you can’t correct the overdraft in a timely matter, you could find yourself owing more than you originally bargained for, thanks to snowballing interest payments.

While overdraft protection allows you to make your purchases and provides a way to cover the difference, it often comes with a price. Banks can charge fees for transferring funds between linked accounts, for example, which you may want to avoid.

By opting out of overdraft protection, most banks will simply decline to process transactions that your account balance can’t cover. That’s great if you’re trying to buy a pair of sneakers and don’t want to get hit with fees, but if you need to make an emergency purchase, you could find yourself in trouble.

The bottom line

Overdraft fees are expensive and annoying. Buying an item that costs $5 and getting hit with a $27 fee is a pointless expense. Incurring bank fees like this means you’re essentially throwing money out of the window. If you’re prone to overdrawing your account, plug that leak by signing up with one of these seven no-overdraft-fee checking accounts.

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James Ellis
James Ellis |

James Ellis is a writer at MagnifyMoney. You can email James here