Banks and Credit Unions in California with No Overdraft Fees

January 14, 2012 No Comments »

We will be conducting research on a number of checking account products from hundreds of banks and credit unions throughout the country and publishing our results of the institutions imposing no overdraft fees associated with their checking accounts on a state by state basis. Although we are starting with California this week, stay tuned as your state will pop up in the near future. If you happen to be one of those individuals that occasionally withdrawals slightly more than you have, rest assured that you wont be hit with overdraft fees from the following accounts.

Top 5 Checking Accounts with No Overdraft Fees in California

1) Perkstreet Checking Account – This account with it’s current features will always hold the number one spot simply because it’s the most rewarding checking account on the market and it’s widely available. You can view our full review here. Just as a quick synopsis of this account, it essentially pioneered the way for “cash back checking accounts.” It comes with zero fees (including no overdraft fees). Plus it gives customers between 1% and 2% cash back on purchases – which can quickly add up to substantial savings. It was also featured in our top checking account promotions of 2012 publication.

2) ING Direct’s Checking Account with $50 Bonus – People regularly forget about this account because ING is cutting back on their physical branch locations but it has one of the simplest fees structures around – and that is that there is none. And we mean ZERO. Just like with Perkstreet mentioned above, there are no overdraft fees or monthly maintenance fees associated with this checking account. This account is available to California residents as well as consumers in all 50 states as well. Plus for a limited time, you’ll nab a $50 bonus just for opening the account!

3) Star One Credit Union – This checking account comes from a California based credit union and is geographically exclusive to that area. The way in which their overdraft fee protection works is that your checking account (debit card) is linked to your credit card so that if you withdrawal more funds than you possess in your checking account it will simply withdrawal it from your credit account without imposing any cash advance fees from the credit card as is typical with most cash withdrawals from credit cards. Star One Credit Union was established in 1956 and is based out of Sunnyvale, California and controls roughly $5.5 billion in assets from 86,000 members.

4) Patelco Credit Union – Patelco Credit Union based out of San Francisco, California has 42 locations throughout California and bordering states. Their “Free Checking Account” is a fairly straight forward checking account with no monthly maintenance fees and free overdraft protection. They will impose zero overdraft fees but they will take the overdrawn funds from another account you have with them (similar to Star One Credit Unions approach above).

5) California Credit Union – CCU based out of Glendale, CA has just 14 locations throughout the state and has been around since 1933. Their “Free Checking Account” also comes with overdraft protection that must be secured by a line of credit either through a credit card or an additional line of credit set up with the institution. Keep in mind though that interest will be paid on the advanced amount.

Since the constant threat of new checking account fees especially associated with the countries largest banks, we figured we’d give a state by state run down of alternative options that still believe in straight forward and easy-going checking. Let us know if you know of a noteworthy checking account in this respect.

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