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What You Need to Know About Credit Card Travel Insurance

What does credit card travel insurance cover how does it work and what are some credit cards that offer trip protection start to unravel the complexities in this beginner’s guide..

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Whether your flight was delayed or your trip was derailed by COVID, you could recoup some of your costs with insurance provided by travel credit cards.

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Travel can be fun and exciting, but many things can go wrong on a trip. There are flight cancellations and delays, lost luggage, and even the dreadful reality of contracting COVID away from home . Investing in travel insurance can alleviate the fear of such situations. But sometimes protections offered by travel insurance companies are ones that you already get for free from your credit card .

You read correctly. Just by charging travel to your credit card, you may be entitled to coverage that you never knew you had. As with third-party travel insurance—and basically any insurance for that matter—so many terms and conditions apply, there are rules after rules, and COVID reimbursements are a tricky topic.

The subject of credit card travel insurance is very complicated—way too complicated for a single article—yet the basics are worth knowing before booking your next trip.

What is travel protection on a credit card?

Most—but not all—credit cards provide several implicit travel insurances as benefits for being a cardholder. These insurances usually kick in when charging travel to the credit card or using points for travel through a credit card’s loyalty program. Said travel insurances are collectively referred to as travel protections in credit card literature. Typically, when searching for the travel coverages your credit card provides, you will find them lumped under a banner or heading labeled “Travel Protections.”

What does your credit card travel insurance cover?

Some of the best travel credit cards provide travel insurance as part of their regular benefits. Some do not. Depending on the credit card, you may be entitled to some compensation under the following insurances:

• Emergency Evacuation & Transportation: If you become ill on your trip and require medical evacuation and treatment
• Trip Interruption and Cancellation: If you need to cancel or cut short your trip due to specific unforeseen circumstances
• Emergency Medical and Dental Benefit: If you require emergency medical or dental services during a covered trip
• Trip Accident Insurance: If you are severely injured, maimed, or–eek–die on your trip
• Trip Delay: If your common carrier is delayed more than a specified number of hours
• Delayed Baggage: If your bags arrive late, beyond a specified number of hours
• Lost Baggage: If your bags are deemed lost for good
• Rental Car Insurance: If you rent a car more than a specified number of miles away from your domicile and experience theft or damage to the rental car that you did not cause

Again, it’s important to note that not all cards with travel insurance include all these coverages. Each is different. Moreover, if you buy third-party travel insurance , it may or may not include specific protections (and covered reasons) that you don’t already get with your credit card.

What credit cards come with travel insurance?

Remember those pamphlets that arrived in the mail when you received your credit card, the ones you threw in the recycling bin? Likely within that paperwork was a handy “Guide to Benefits” that detailed the travel insurances of your credit card. Thankfully, most of this information can still be retrieved online when logging into your credit card account or even doing a simple Google search.

In the most general sense, every credit card is unique in its benefits—and that includes travel insurances. Some cards like the Citi Premier® Card , which ranks best in class for extended warranty protection on shopping purchases and is great for earning points on travel, comes with zero travel protections. At the opposite end of the spectrum, Chase Sapphire Reserve® has the most comprehensive suite of travel protections, ranging from Medevac insurance to rental car insurance as primary coverage.

Below is a chart of six popular travel credit cards and the insurances they do and do not provide.

Within each box of this chart lies more layers of complexity. Often, you are entitled to itemized coverages only under specific circumstances known as “covered reasons.” Moreover, several cards may offer the same protection, say “Trip Delay Protection,” but each may define a delay differently (i.e., 6 hours vs. 12 hours) and then may cap reimbursements at different amounts. Similarly, while some rental car insurance policies like the Chase Sapphire Reserve offer primary coverage, others offer only secondary coverage (meaning, you’d need to go through your own regular car insurance first). On top of that, travel to specific countries may be excluded under some policies.

All this to say, read the fine print!

Where does COVID related coverage fit into credit card travel insurance?

To start, your credit card travel insurance is not an umbrella policy for COVID-related expenses. But you can find some COVID coverage within the Trip Cancellation & Interruption policies of select cards.

In the most general sense, if you decide to cancel your trip because of COVID (or civil unrest—another big topic nowadays), you will not be covered. Even the most generous of travel insurance-promoting credit cards, Chase Sapphire Reserve, states in its Guide to Benefits that “your disinclination to travel due to an epidemic or pandemic” is not covered by its Trip Cancellation & Interruption policies.

However, should you get sick while traveling, some coverage may kick in. Again, this will require reading through the fine print of your specific credit card’s Guide to Benefits. Within the Trip Cancellation & Interruption policies of Chase Sapphire Reserve, it states, “quarantine of you or your travel companion imposed by a physician or by a competent governmental authority having jurisdiction, due to health reasons,” is a covered event while the guide for The Platinum Card® from American Express (see rates and fees ) states, “quarantine imposed by a physician for health reasons” is also a covered event. What may be covered (if and when documented properly) is any prepaid trip expense charged to the credit card that you are unable to fulfill due to your illness. That means things like changing your flight home or a refund for the part of your trip/hotel stay missed after testing positive and having to quarantine. That said, neither card will pay for your expenses to stay in a hotel to recover from COVID.

Credit card travel insurance is complicated, and policies differ by card. However, it’s worth deciphering your card’s coverages to know exactly what you’re entitled to as a cardholder before booking your next trip–and to avoid redundant third-party travel insurance.

While the offers mentioned above are accurate at the time of publication, they are subject to change at any time, and may have changed or may no longer be available.

The 9 best credit cards with travel insurance

Update : Some offers mentioned below are no longer available. View the current offers here .

Travel insurance can save you a lot of money if something goes wrong on a trip. Luckily, some of the top travel rewards cards offer travel insurance when you pay for travel with your card. For example, some cards will reimburse select expenses if your baggage is damaged , you're stranded overnight due to a flight delay or cancellation or you have to return home to handle a family medical emergency .

I almost always rely on travel protections provided by premium credit cards instead of purchasing travel insurance. But when traveling during the coronavirus pandemic, you should consider when to buy travel insurance versus when to rely on credit card protections .

We have a separate guide about the best travel insurance if you want to buy a policy. So, today I'll discuss some of the best rewards cards that provide travel insurance. In particular, I'll focus on cards that offer both travel insurance and bonus rewards when you use the card to purchase flights, trains, buses and other scheduled transportation.

Get the latest points, miles and travel news by signing up for TPG's free daily newsletter .

Best credit cards with travel insurance

• Chase Sapphire Reserve : Best overall card
• Chase Sapphire Preferred Card : Best sub-$100 annual fee card
• Ink Business Preferred Credit Card : Best business card
• United Club Infinite Card : Best for United loyalists
• The Platinum Card® from American Express : Best for flights booked directly with airlines or with Amex Travel
• The Business Platinum Card® from American Express : Best for business travel booked with Amex Travel
• Delta SkyMiles® Reserve American Express Card : Best for Delta loyalists
• Bank of America® Premium Rewards® credit card : Best for Bank of America Preferred Rewards members
• U.S. Bank Altitude Reserve Visa Infinite® Card : Best for U.S. Bank customers

The information for the U.S. Bank Altitude Reserve card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Types of travel insurance you can get from a credit card

Many of the best travel rewards cards offer travel insurance when you use your card to purchase travel. Although some cards will provide coverage even if you only pay taxes and fees on an award ticket, some cards require you to pay for your entire trip with the card. See the links below for more information on the types of travel insurance offered by select cards and the best cards for each kind of insurance:

• Baggage delay protection
• Lost/damaged baggage protection
• Trip delay reimbursement
• Trip cancellation and interruption protection
• Medical evacuation benefit and travel accident insurance
• Emergency medical and dental benefit (offered by the Chase Sapphire Reserve)
• Rental car coverage

As you'll notice in this guide, the types and levels of protection vary significantly across credit cards. And most protections have exclusions or limitations . So be sure to read the guide to benefits on your card before assuming something or someone will be covered .

Related: TPG's comprehensive guide to independent travel insurance — including coronavirus coverage

Comparing credit cards with travel insurance

Now let's take a closer look at each card to determine how you can use these perks when things go wrong on a trip.

Chase Sapphire Reserve

Sign-up bonus : Earn 60,000 Chase Ultimate Rewards points after you spend $4,000 on purchases in the first three months from account opening. Based on TPG's valuations , this bonus is worth $1,200.

Rewards : 10x points on Lyft rides through March 2022 ; 3x points on dining and travel ; 1x points on everything else

Travel insurance :

• Baggage delay : Up to $100 reimbursed per day for up to five days if a passenger carrier delays your baggage more than six hours
• Lost/damaged baggage : Up to $3,000 per passenger per trip, but only up to $500 per passenger for jewelry and watches and up to $500 per passenger for cameras and other electronic equipment
• Trip delay reimbursement : Up to $500 per ticket if you're delayed more than six hours or require an overnight stay
• Trip cancellation and interruption protection : Up to $10,000 per person and $20,000 per trip for pre-paid, non-refundable travel expenses
• Medical evacuation benefit : Up to $100,000 for necessary emergency evacuation and transportation when on a trip of five to 60 days and traveling more than 100 miles from home (100-mile requirement waived for New York residents)
• Travel accident insurance : Accidental death or dismemberment coverage of up to $100,000 (up to $1,000,000 for common carrier travel)
• Emergency medical and dental benefit : Up to $2,500 for medical expenses (subject to a $50 deductible) when on a trip arranged by a travel agency and traveling more than 100 miles from home (100-mile requirement waived for New York residents)
• Rental car coverage : Primary coverage for damages caused by theft or collision up to $75,000 on rentals of 31 days or less

Annual fee : $550 ($75 for each authorized user )

The Chase Sapphire Reserve offers 3x Chase Ultimate Rewards points on all travel purchases. Due to its 6% return and excellent travel protections, the Chase Sapphire Reserve is my go-to card for travel expenses. Plus, the Chase Sapphire Reserve provides protections on award tickets even when I only charge the award's taxes and fees to the card .

To learn more, check out the full Chase Sapphire Reserve credit card review and guide to benefits . If you decide to apply, here's the official application link: Chase Sapphire Reserve.

Related: The power of the Chase Trifecta: Sapphire Reserve, Ink Preferred and Freedom Unlimited

Chase Sapphire Preferred Card

Sign-up bonus : Earn 80,000 Chase Ultimate Rewards points after you spend $4,000 on purchases in the first three months from account opening. Plus, earn a $50 statement credit on grocery purchases in the first year of account opening. Based on TPG's valuations , this bonus is worth $1,650.

Rewards : 5x points on Lyft rides through March 2022 ; 2x points on dining and travel ; 1x points on everything else

• Baggage delay : Up to $100 reimbursed per day for up to five days if a common carrier delays your baggage more than six hours
• Trip delay reimbursement : Up to $500 per ticket if you're delayed more than 12 hours or require an overnight stay
• Travel accident insurance : Accidental death or dismemberment coverage of up to $100,000 (up to $500,000 for common carrier travel)
• Rental car coverage : Primary coverage for damages caused by theft or collision up to the actual cash value of most rented cars on rentals of 31 days or less

Annual fee : $95

The Chase Sapphire Preferred is one of the best travel rewards credit cards for the average traveler . Although a 4% return on travel purchases isn't fantastic, it's still respectable considering the card's modest $95 annual fee and travel protections. As with the Chase Sapphire Reserve , you'll get coverage on award tickets even when you only use your Chase Sapphire Preferred to pay the taxes and fees.

To learn more, check out our Chase Sapphire Preferred review and the complete guide to benefits . And here's the official application link: Chase Sapphire Preferred Card.

Related: 5 reasons why the Chase Sapphire Preferred should be your first card

Ink Business Preferred Credit Card

Sign-up bonus : Earn 100,000 Chase Ultimate Rewards points after you spend $15,000 on purchases in the first three months from account opening. Based on TPG's valuations , this bonus is worth $2,000.

Rewards : 3x points on the first $150,000 spent each account year in combined purchases on travel, shipping purchases, internet, cable and phone services and advertising purchases with social media sites and search engines; 1x points on everything else

• Trip cancellation and interruption protection : Up to $5,000 per person and $10,000 per trip for pre-paid, non-refundable travel expenses
• Rental car coverage : Primary coverage (except when renting for personal reasons in your country of residence, in which case coverage is secondary) for damages caused by theft or collision up to the actual cash value of most rented cars on rentals of 31 days or less

The Ink Business Preferred is one of the best business travel rewards cards on the market. It earns a 6% return on the first $150,000 spent in select categories , which is excellent considering the card's $95 annual fee and travel protections. As with other Chase cards , you'll be protected on award tickets as long as you use your Ink Business Preferred to pay the taxes and fees.

To learn more, check out the full Ink Business Preferred Credit Card review . And here's the official application link: Ink Business Preferred Credit Card.

Related: 5 reasons to get the Chase Ink Business Preferred credit card

United Club Infinite Card

Sign-up bonus : Earn 75,000 bonus miles after you spend $3,000 on purchases in the first three months from account opening. Based on TPG's valuations , this bonus is worth $975.

Rewards : 4x miles on purchases with United; 2x miles at restaurants and on other travel; 1x miles on everything else

• Baggage delay : Up to $100 reimbursed per day for up to three days if a common carrier delays your baggage more than six hours

Annual fee : $525

The United Club Infinite Card provides decent travel protections, a 5.2% return on purchases with United and a United Club membership . But, its 2.6% return on other travel purchases and 1.3% return on all other purchases means you'll earn rewards slowly. As with other Chase-issued cards, you'll be protected on award tickets even when you only use your United Club Infinite Card to pay the taxes and fees.

To learn more, check out the full United Club Infinite Card review . And here's the official application link: United Club Infinite Card.

Related: Best ways to use the United Club Infinite Card

The Platinum Card from American Express

Welcome offer : Earn 75,000 Membership Rewards points after you spend $5,000 on purchases in your first six months of card membership. Plus, earn 10x points on eligible purchases on your new card at U.S. gas stations and U.S. supermarkets (on up to $15,000 in combined purchases) during your first six months of card membership. Based on TPG's valuations , the 75,000-point bonus is worth $1,500. However, you may be able to snag a targeted 100,000-point offer through the CardMatch tool (offer subject to change at any time).

Rewards : 5x points on flights booked directly with airlines or with American Express Travel (on up to $500,000 per calendar year); 5x points on prepaid hotels booked with American Express Travel ; 1x points on other purchases

• Lost/damaged baggage : Up to $3,000 per traveler for carry-on baggage and up to $2,000 per traveler for checked baggage, but only $1,000 per traveler for high-risk items. Note that you must pay the entire fare with your card (including Pay with Points ).
• Trip delay reimbursement : Up to $500 per covered trip and up to two claims per 12-month period per card if a common carrier delays you by more than six hours. Coverage only provided on round-trip travel purchased entirely with an eligible card (paying taxes and fees on award tickets or Pay with Points tickets is covered).
• Trip cancellation and interruption protection : Up to $10,000 per covered trip and $20,000 per eligible card per 12-month period for prepaid, non-refundable travel expenses. Coverage only provided on round-trip travel purchased entirely with an eligible card (paying taxes and fees on award tickets or Pay with Points tickets is covered).
• Rental car coverage : Get secondary coverage of up to $75,000 for damages caused by theft or collision on rentals of 30 days or less when you pay for the entire rental with an eligible card (including Pay with Points). You can pay per rental to upgrade to primary coverage through the American Express Premium Car Rental Protection program .
• Emergency medical transportation : At no cost if the Premium Global Assist Hotline medical department determines it is medically necessary and advisable due to inadequate local facilities. You must be traveling more than 100 miles from home on a trip of 90 days or less.

Annual fee : $550 ($175 for up to three additional Platinum cards , then $175 for each additional Platinum card after the first three; see rates and fees)

The Amex Platinum provides an impressive 5x points on flights booked directly with airlines or through Amex Travel (up to $500,000 per calendar year). it also offers 5x points for prepaid hotels booked through Amex Travel. So, using TPG's latest valuations , you'll get a 10% return on these purchases. But even with a 10% return on select airfare purchases, I still don't use the Amex Platinum to book flights . Instead, I use the Amex Platinum primarily as a membership card since the Chase Sapphire Reserve's travel protections provide better coverage for my travel style.

To learn more, check out our Platinum Card from American Express card review and take a look at the terms and conditions of each benefit. Here's the official application link: The Platinum Card from American Express. But, you may also want to check the CardMatch Tool to see if Amex has targeted you for a different offer. However, CardMatch offers are subject to change at any time.

Related: Comparing built-in travel insurance with the Chase Sapphire Reserve and Amex Platinum

The Business Platinum Card from American Express

Welcome offer : Earn 125,000 Membership Rewards points after you spend $15,000 on eligible purchases with your card within the first three months of card membership. Based on TPG's valuations , the 125,000-point bonus is worth $2,500.

Rewards : 5x points on flights and prepaid hotels booked through Amex Travel ; 1.5x points on each eligible purchase of $5,000 or more (up to one million additional points per year); 1x points on other purchases

• Trip delay reimbursement : Up to $500 per covered trip and up to two claims per 12-month period per card if a common carrier delays you more than six hours. Coverage only provided on round-trip travel purchased entirely with an eligible card (paying taxes and fees on award tickets or Pay with Points tickets is covered).

Annual fee : $595 (see rates and fees)

The Amex Business Platinum provides an impressive 5x points on flights and prepaid hotels booked through Amex Travel . Based on TPG's latest valuations , this means you'll get a 10% return on these purchases. But, if you don't want to book through Amex Travel and would prefer to earn bonus points on a wide variety of business expenses, you may be better off with the Ink Business Preferred Credit Card.

To learn more, check out our Business Platinum Card from American Express card review and take a look at the terms and conditions of each benefit. And here's the official application link: The Business Platinum Card from American Express.

Related: Why you should consider having both the personal and business Amex Platinum cards

Delta SkyMiles Reserve American Express Card

Welcome offer : Earn 50,000 bonus miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases in the first three months. Plus, earn up to $100 back in statement credits for eligible purchases at U.S. restaurants with your card within the first three months of card membership. Based on TPG's valuations , the 50,000-mile bonus (plus the statement credit) is worth $650.

Rewards : 3x miles on purchases made directly with Delta; 1x miles on all other eligible purchases.

Annual fee : $550 (see rates and fees)

The Delta Reserve Amex provides a 3.3% return on purchases made directly with Delta as well as travel protections that can protect you on eligible round-trips. I'd personally use the Chase Sapphire Reserve, Chase Sapphire Preferred or Ink Business Preferred Credit Card instead of the Delta Reserve when buying flights. But the Delta Reserve offers decent travel protections if you don't have any of these Chase-issued cards or want to earn Delta miles .

To learn more, check out the full Delta SkyMiles Reserve American Express Card review and take a look at the terms and conditions of each benefit. And here's the official application link: Delta SkyMiles Reserve American Express Card.

Related: Choosing the best credit cards for Delta flyers

Bank of America Premium Rewards credit card

Sign-up bonus : Earn 50,000 points after you spend $3,000 on purchases in the first 90 days from account opening. This bonus is worth $500.

Rewards : 2x points on travel and dining and 1.5x points on all other purchases. Plus, earn 2 points for every $1 spent on grocery store purchases- now through 12/31/21.

• Trip delay reimbursement : Up to $500 per ticket for unexpected trip delays of more than 12 hours
• Trip cancellation and interruption protection : Up to $2,500 per person, per trip for unused pre-paid, non-refundable travel expenses
• Baggage delay : Up to $100 reimbursed per day for up to five days for baggage delays of more than six hours
• Lost luggage reimbursement : Provides coverage for luggage and its contents if they are lost or stolen due to theft or misdirection by your common carrier
• Emergency evacuation and transportation coverage : Covers eligible medical services and transportation if you or a member of your immediate family are injured or become sick during a trip far from home that results in an emergency evacuation.
• Rental car coverage : Get secondary coverage for damages caused by theft or collision.

The Bank of America Premium Rewards credit card offers solid value in exchange for its $95 annual fee. For example, you'll get an up to $100 Global Entry/TSA Precheck application fee credit every four years and an annual up to $100 airline incidental fee statement credit .

But, this card is ideal for Bank of America Preferred Rewards members. After all, these members can earn between 25%-75% more points on their purchases. That means the card's 2x earnings on travel and dining could increase up to 3.5 points per dollar. Meanwhile, the 1.5x earnings on all other purchases could rise as high as 2.625 points per dollar.

To learn more, check out our Bank of America Premium Rewards Visa Credit Card review .

Related: 5 reasons to get the Bank of America Premium Rewards credit card

U.S. Bank Altitude Reserve Visa Infinite Card

Sign-up bonus : Earn 50,000 points after you spend $4,500 in the first 90 days of account opening. These points are worth $750 when redeemed to offset eligible travel purchases. However, this card is only available to U.S. Bank customers who have an eligible U.S. Bank account relationship open and active at least five business days before applying.

Rewards : 5x points on prepaid hotels and car rentals booked directly in the Altitude Rewards Center; 3x points on eligible travel purchases and mobile wallet spending; 3x points on takeout, food delivery and dining through June 30, 2021; 1x points on other purchases

• Trip delay reimbursement : Up to $500 per ticket purchased with your card if you're delayed more than six hours or require an overnight stay
• Trip cancellation and interruption protection : Up to $2,000 per person, but only to cover non-refundable common carrier tickets
• Lost baggage reimbursement : Up to $3,000 per trip (up to $2,000 per bag for New York residents) if your checked or carry-on bag (or its contents) is lost due to theft or misdirection by a common carrier
• Travel accident insurance : Up to $500,000 of accidental death and dismemberment coverage when you use your card to purchase a ticket for eligible forms of transportation
• Rental car coverage : Coverage for physical damage and theft, reasonable and customary towing and valid loss-of-use charges

Annual fee : $400

The U.S. Bank Altitude Reserve Visa Infinite Card can be an excellent choice for daily spending and travel purchases , especially if the merchants you shop with accept mobile wallet payments . But the card doesn't include baggage delay protection and the trip cancellation and interruption protection only covers common carrier tickets. However, the Altitude Reserve provides a solid alternative to those who can't get accepted for a Chase card .

For more information, check out our U.S. Bank Altitude Reserve Visa Infinite Card review .

Related: What credit score is needed for a U.S. Bank Card?

Main benefits of having a credit card with travel insurance

There are multiple benefits to having a credit card that provides travel insurance when you pay for eligible travel expenses with your card. The main advantage is simplicity: I don't need to research independent travel insurance unless I'm going on a trip for which my credit card's travel insurance doesn't provide the level of coverage I want .

Having a credit card with travel insurance can also save you money. My sister-in-law paid more than $100 to buy theft and collision insurance from a car rental company . After that experience, she finally got the Chase Sapphire Preferred to obtain similar coverage as a card perk. Now, she can recoup her annual fee even if she just rents a car a couple of times each year.

Finally, having a credit card with travel insurance provides reassurance. I don't need to worry if bad weather causes a flight cancellation and strands me overnight since I know my card will provide trip delay protection . And, I'm almost happy when the airline temporarily misplaces my checked bag for a few days, as my card's baggage delay insurance means I can purchase some essential clothing items while I wait.

Related: Why you might want to get a premium credit card instead of purchasing travel insurance

How to submit a claim

If you're in a situation where you believe you may be eligible for your credit card's travel insurance, your first step should be to read your card's guide to benefits or call the number on the back of your card. Even if you believe you'll be covered after reading your card's guide to benefits, it is usually a good idea to call the number on the back of your card. By calling, you can ensure you're covered, learn about deadlines for making your claim and determine what documents you'll need to collect.

The benefits administrator will usually walk you through the necessary steps for making your claim. Luckily, many card issuers now allow you to file claims online, so you may not need to send in physical documents. Be sure to pay attention to any deadline for starting your claim and uploading documents, as well as any specific requirements for requested documentation.

Related: Your guide to Chase's trip insurance coverage

What card should I use for travel insurance?

The Amex Platinum's 5x points for airfare booked directly through airlines or Amex Travel is impressive. But the lack of baggage delay protection and the requirement of round-trip travel for some benefits usually discourages me from using Amex-issued cards for flights.

Instead, I use the Chase Sapphire Reserve when booking flights and other common carrier travel due to its solid mix of earnings and protections . But, if you can't quite justify the Chase Sapphire Reserve's $550 annual fee , the Chase Sapphire Preferred Card and Ink Business Preferred Credit Card both provide reasonable travel protections for a sub-$100 annual fee .

Related: Why the Sapphire Preferred should still be the first rewards card in your wallet

Bottom line

Credit card travel protections are easy to under-value. However, I've gotten thousands of value from credit card travel insurance over the years. As such, I'll often forgo better earning rates to put airfare and award flight taxes and fees on a card I know provides solid protection. For me, this card is usually the Chase Sapphire Reserve or the Ink Business Preferred Credit Card. However, I purchase independent travel insurance for select trips when I want additional benefits, such as cancel or any reason coverage or non-medical evacuation coverage.

For rates and fees of the Amex Platinum, please click here. For rates and fees of the Amex Business Platinum, please click here. For rates and fees of the Delta Reserve Amex, please click here.

Updated on 5/3/21.

RewardExpert.com is an independent website that is supported by advertising. RewardExpert.com may be compensated by credit card issuers whose offers appear on the site. Because we are paid by our advertising partners it may impact placement of products on the site, including the order in which they appear. Not all available credit card issuers or card offers are included on the site.

• Credit Cards

Which Credit Card Issuer Has the Best Travel Insurance: American Express vs. Discover vs. Barclays?

Many credit card users are familiar with travel benefits offered by their credit cards including car rental coverage and lost luggage protection. Some credit cards go beyond this level of coverage, providing travel insurance that covers cardholders in the event of unforeseen events, accidents or illnesses. We’ll take a look at three big credit card issuers and the types of credit card travel insurance they offer. This coverage may factor into your decision when you’re choosing which credit card to use when booking a trip, which is an important decision to make in case you need to make a claim.

Two Types of Credit Card Travel Insurance

There are two types of travel insurance offered by credit cards:

• Trip Cancellation Insurance

Travel Accident Insurance

Trip cancellation insurance covers the cost of your travel, up to a certain amount, if you have to cancel or delay your trip because of an illness, accident or a death in your immediate family. To take advantage of this insurance, you must have booked the trip with the credit card that includes the coverage. The insurance will most often cover the cost of carrier transportation including airfare or a train ticket, but not the cost of lodging.

Travel accident insurance is similar to life insurance, providing coverage for you and your immediate family, up to a certain amount, in the event of an illness, accident or fatality that occurs while you’re traveling. Policies are often very specific on what is covered and when it is covered. It helps to pay close attention to the terms of the policy to know when you’re covered.

Let’s take a closer look at credit card travel protection offered by American Express, Barclays and Discover.

Best American Express Cards With Travel Insurance

All American Express credit cards include travel insurance when you purchase the flight with your Amex credit card or use Membership Rewards. The coverage amount depends on the credit card.

• Amex cards with up to $100,000 in coverage
• Amex cards with up to $250,000 in coverage
• Amex cards with up to $500,000 in coverage

What Does American Express Travel Insurance Cover?

American Express travel insurance provides coverage for loss of life and dismemberment that occurs while on a common carrier. To be covered, you must pay for the entire trip using your credit card . You won’t be covered if you use frequent flyer points from another program or another form of payment for any part of the trip. However, if you combine American Express Membership Rewards Points and a credit card to pay for your ticket, you will be covered.

While American Express does not automatically provide coverage for trip cancellation or trip delays, they do offer a separate travel insurance package that consumers can purchase regardless of the credit card used to book travel. Coverage includes trip cancellation and interruption, travel accident protection, global medical protection, global baggage protection, global trip delay, and 24-hour travel assistance starting at $59. You can also choose individual coverage for as low as $11.

What Does Discover Flight Accident Insurance Cover?

Your Discover credit card includes up to $500,000 in flight accident insurance. The benefit covers you, a domestic partner and any eligible dependent children in the event of an accidental death or bodily injury while you’re on a trip. The loss of life benefit is paid to the beneficiary who you’ve designated in writing and filed with the plan administrator. Or, if you haven’t designated a beneficiary, the benefit will be paid to your first surviving beneficiary in this order: your spouse, your children, your parents, your brothers, and sisters or your estate. Claims must be filed with the plan administrator within 90 days.

Best Barclays Cards With Travel Insurance

A few of Barclays’ credit cards include travel insurance, trip cancellation coverage, and trip delay coverage:

• Luxury Card™ Mastercard® Black Card™
• Luxury Card™ Mastercard® Titanium Card™

What Does Barclay Travel Insurance Cover?

Barclays travel insurance provides medical expense, loss of life coverage and reimbursement for trip cancellation, interruption or delay. Coverage applies when you use one of Barclaycards credit cards to pay for your trip.

Barclays provides $250,000 in travel accident insurance which covers you, your spouse, and unmarried dependent children. Your family is insured against accidental loss of life, limb, sight, speech or hearing while you’re a passenger on a carrier that you’ve paid for with your credit card.

Trip Interruption/Cancellation Insurance

Barclaycards credit cards include trip interruption/cancellation insurance which will reimburse you for up to $1,500 towards the cost of a trip that is canceled due to sickness, accident or death. Barclays travel insurance coverage kicks in if your trip is interrupted because of:

• severe weather
• a change in military orders
• a medical quarantine
• jury duty or subpoena
• terrorist attack or hijacking
• an uninhabitable dwelling

Bonus: Trip Delay Insurance

World Elite credit cards also include Trip Delay. You’ll be reimbursed up to $300 when your trip is delayed by six hours or more. So, for example, if you needed to book a hotel because a flight was delayed, your card benefits would reimburse you up to $300 for the hotel stay.

Which Credit Card Includes the Most Travel Insurance?

First place.

Barclays covers not only accident insurance and trip interruption/cancellation but also includes trip delay insurance. This extensive travel coverage makes Barclays the winner.

SECOND PLACE

American express.

American Express credit cards come with varying levels of coverage and only cover loss of life and dismemberment. The premium credit cards that come with higher coverage amounts also have high annual fees. If you want trip cancellation insurance, you’ll have to purchase a separate policy.

THIRD PLACE

While Discover cards all come with $500,000 of travel accident insurance, coverage only applies to loss of life, not medical expenses related to dismemberment.

Editorial Disclosure: Opinions expressed here are author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.

UGC Disclosure: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved, or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

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Discover purchase protection

After trimming benefits in 2018, Discover lacks protections compared to other issuers

Published: October 26, 2020

Author: Fred O. Williams

Author: Emily Sherman

How we Choose

Extended warranties, backup car insurance, purchase protection and return guarantee are among the rarely used benefits that Discover ended Feb. 27. 2018.

The content on this page is accurate as of the posting date; however, some of our partner offers may have expired. Please review our list of best credit cards , or use our CardMatch™ tool to find cards matched to your needs.

Travel and purchase protections make up often overlooked card perks that can add value, if you know how to spend to qualify for them. But unfortunately, Discover cut most of these benefits from its suite of cards in 2018. While basic protections for identity theft and fraud remain, popular cards like the Discover it® Miles or Discover it® Cash Back  have tapered down benefits compared to competitors like American Express or Chase .

The card network cut the following benefits in February 2018: purchase protection, return guarantee, extended product warranty, auto rental insurance and flight accident coverage. Additionally, Discover no longer offered price protection as of Oct. 31, 2018.

Discontinued Discover benefits

• Purchase protection: Purchases made before Feb. 28, 2018, were covered; no claims could be made after July 13, 2018. Insured damaged or stolen purchases up to $500 for 90 days after purchase.
• Return guarantee : Coverage applied to purchases made prior to Feb. 28, 2018; no claims could be made after May 29, 2018. Helped get money back on unsatisfactory items within 90 days, up to $500 per item and $2,500 a year.
• Extended product warranty: Purchases made before Feb. 28, 2018, were covered. Covered additional year after original warranty expires, for eligible items with warranties 36 months or less.
• Auto rental insurance : Coverage applied for auto rental purchases that posted prior to Feb. 28, 2018; no claims could be made after May 29, 2018. Secondary insurance for loss or damage up to $25,000.
• Flight accident: Coverage applied for incidents that happened prior to Feb. 28, 2018. Travel accident coverage up to $500,000 when buying airline tickets.
• Price protection: Purchases made before Oct. 31, 2018, were covered. Refunded the difference on purchases up to $500 on eligible items (up to $2,500 per year) if you spotted an identical, lower-priced item within 90 days of purchase.

Discover is not the only card issuer that has cut back benefits  for shoppers and travelers in recent years. Visa and Mastercard, for example, began slashing return assistance and guarantee perks in 2014.

Trimming costs without affecting customers

The benefits were ended “due to prolonged low usage,” Discover said in a statement when it first announced the changes. The card company appeared to be trimming costs without rocking its customers’ boats too much, analysts said.

“They’ve done well in customer satisfaction – you have to assume they’ve done some market research,” said Brian Riley, director of credit advisory service at Mercator Advisory Group. He said it is significant that Discover’s rewards program, which is relatively generous, is unaffected by the changes. Discover was second only to American Express among major card issuers in customer satisfaction in J.D. Power’s 2020 survey .

This “low usage” narrative is one that’s been repeated by other issuers such as Citi and Barclays as similar benefits are trimmed.

Time for a card reboot?

However, the cuts may mean some cardholders can find more value in other rewards cards .

For example, the Chase Sapphire Preferred Card  comes with the best car rental insurance you can find on a credit card and the American Express® Gold Card offers extensive purchase protections.

Discover still offers valuable security benefits

Despite leaner perks for travel and shopping, Discover still offers plentiful protections in the case of identity theft. All cards come with fraud protection and Social Security number alerts in case details are used without your permission.

And for those working on their credit health, Discover Credit Scorecard can help you keep track of your credit score and learn more on exactly what goes into your report.

See related:   Credit cards that offer free credit scores

Editorial Disclaimer

The editorial content on this page is based solely on the objective assessment of our writers and is not driven by advertising dollars. It has not been provided or commissioned by the credit card issuers. However, we may receive compensation when you click on links to products from our partners.

Fred O. Williams is a former senior reporter for CreditCards.com.

Emily Sherman is a senior editor at CreditCards.com, focusing on product news and recommendations. She is also one of the founders of To Her Credit, a biweekly series of financial advice by women, for women. When she's not writing about credit cards, she's putting her own points and miles to use planning her next big vacation.

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CreditCards.com is an independent, advertising-supported comparison service. The offers that appear on this site are from companies from which CreditCards.com receives compensation. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within listing categories. Other factors, such as our own proprietary website rules and the likelihood of applicants' credit approval also impact how and where products appear on this site. CreditCards.com does not include the entire universe of available financial or credit offers. CCDC has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.

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Why Discover Cardholders Have More to Gain From Merger With Capital One

The potential purchase could unlock access to Capital One's travel perks -- but it could also lead to higher consumer prices.

Dashia Milden

Dashia is a staff editor for CNET Money who covers all angles of personal finance, including credit cards and banking. From reviews to news coverage, she aims to help readers make more informed decisions about their money. Dashia was previously a staff writer at NextAdvisor, where she covered credit cards, taxes, banking B2B payments. She has also written about safety, home automation, technology and fintech.

Tiffany Connors

Tiffany Wendeln Connors is a senior editor for CNET Money with a focus on credit cards. Previously, she covered personal finance topics as a writer and editor at The Penny Hoarder. She is passionate about helping people make the best money decisions for themselves and their families. She graduated from Bowling Green State University with a bachelor's degree in journalism and has been a writer and editor for publications including the New York Post, Women's Running magazine and Soap Opera Digest. When she isn't working, you can find her enjoying life in St. Petersburg, Florida, with her husband, daughter and a very needy dog.

Courtney Johnston

Senior Editor

Courtney Johnston is a senior editor leading the CNET Money team. Passionate about financial literacy and inclusion, she has a decade of experience as a freelance journalist covering policy, financial news, real estate and investing. A New Jersey native, she graduated with an M.A. in English Literature and Professional Writing from the University of Indianapolis, where she also worked as a graduate writing instructor.

The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.

At a glance

• Last month, Capital One announced its plans to acquire Discover.
• If approved, the deal won’t close until later this year or early 2025.
• Nothing will change now, but many accounts could be impacted once the deal is finalized.
• Your rewards, interest rates and card terms could potentially look different.

Last month, Capital One announced its plans to buy Discover for $35.3 billion. Should the deal be finalized, perhaps later this year or early in 2025, the merger of these rivals could affect your credit cards.

Some experts warn the potential merger could lead to higher consumer prices on credit cards due to decreased competition as Capital One -- one of the largest credit card issuers -- takes control of Discover -- one of four existing credit card networks , along with   Visa, Mastercard and American Express.

Others seem to think this could be good for consumers.  Some policymakers  suggest that Visa and Mastercard currently have a duopoly on the credit card network market. With Capital One’s backing, Discover could have enough leverage to take on the two companies.

Increasing competition among the credit card networks could lead to more choices for business owners struggling with high merchant fees, and provide consumers with more credit card options. But we’ll have to wait a while to see the potential merger’s true impact.

“Our acquisition of Discover is a singular opportunity to bring together two very successful companies with complementary capabilities and franchises, and to build a payments network that can compete with the largest payments networks and payments companies,” Richard Fairbank, chief executive officer of Capital One, said in a press release .  Here’s what the move could mean for Discover and Capital One credit cardholders.

Don’t panic, nothing is changing right now

There’s a lot of talk about what could happen and what could happen. But nothing is final or immediate.

“Initially this potential merger won’t have any impact on consumers,” said John Ulzheimer, credit card expert . “If you have either a Capital One or a Discover card (or both), you will still be able to use them as you used them yesterday.” It still needs to clear regulatory rules, and the shareholders of both companies would need to approve the merger. But credit card expert and CNET Money Expert Review Board member Aaron Hurd believes it will happen without issue. “The deal represents an immediate 27% return for Discover shareholders,” said Hurd. “In my view, [it] puts a combined company in a good position to compete for major co-branded deals against larger banks.” 

Aside from stakeholders, federal regulators would also need to say “yes,” which could be a hurdle. “Federal regulators’ appetites for bank mergers is shrinking under the Biden administration, and smaller deals have been abandoned because of regulatory friction,” Hurd added. 

Expert predictions on the Capital One-Discover merger 

If the deal does go through, experts say it could be finalized by the end of 2024 or early 2025. Here’s what experts predict you can expect. 

Rewards and benefits could change

There’s still a lot to know about what the move could mean for Discover and Capital One cardholders, including changes to rewards, fees and perks. But Discover cardholders will potentially see the biggest benefit, according to Hurd.

Discover cardholders could have access to Capital One’s extended warranty or travel insurance. “If Capital One harmonizes the benefits across its cards, I’d expect that it will add benefits to Discover cards, making those cards more valuable for Discover cardmembers,” Hurd said.

Credit card expert Jason Steele, also sees benefits from the potential merge. Both experts are hopeful that it will bring good news for Discover cardholders who may want to access Capital One’s travel partners. “Capital One already has partnerships with airline and hotel brands that allow Venture cardmembers to transfer miles to those brands,” Hurd said. With this deal, there’s a chance that Discover cards might get access to the same benefits. But Hurd doesn’t expect any changes to be implemented for at least another year after the merger is final.

“I would love to see Capital One travel insurance and purchase protection benefits be extended to Discover cardholders,” Steele said.

Steele also noted that it’s possible Capital One cardholders could benefit from Discover’s cash checkout feature that lets you withdraw cash when checking out at supermarkets and drug stores. The purchase APR would still likely apply.

And since both offer banking products, including certificates of deposits and high-yield savings accounts , there could be even more changes. But for now, though, any changes to cardholder benefits are only speculation.

A stronger payment network could evolve

Capital One is a credit card issuer that offers cashback and travel credit cards . But Discover is both a credit card issuer and a payment processing network . As of now, Capital One can issue credit cards, but still needs to be backed by a processing network, such as Visa, to authorize transactions. Discover can do just that.

The planned acquisition gives Capital One the chance to move its Mastercard and Visa credit cards to Discover’s network. 

“I think that this has the potential to be good for both Capital One and Discover cardholders,” said Steele. “Capital One cardholders may see their products be part of the Discover payment network.” Bringing their processing network in-house could lower costs for Capital One which they can pass along to cardholders in the form of lower fees and more benefits.

As a payment network, Discover has always been behind Visa, Mastercard and American Express, Steele said. Currently, Discover has 44 million global merchants , much fewer than the other three networks.

Bringing Discover under Capital One could result in a payment network that’s more competitive with Mastercard and Visa. By moving more of Capital One’s products to an in-house Discover network, Capital One could potentially increase the Discover network’s power and help them get accepted by more merchants.  However, it could also mean that current Capital One cardholders won’t have their card accepted at many places if it’s on the Discover network at its current size. Even with Discover and Capital One combined, it won’t be the largest credit card issuer, by a long shot, he said. But the deal could help Capital One rival other major issuers including Chase, Citi and American Express.

CNET editors independently choose every product and service we cover. Though we can’t review every available financial company or offer, we strive to make comprehensive, rigorous comparisons in order to highlight the best of them. For many of these products and services, we earn a commission. The compensation we receive may impact how products and links appear on our site.

How to choose the best credit card

The best credit card for you is the one that best fits your individual financial needs and spending habits. Maybe it has a great sign-up bonus to help you get extra points for an upcoming vacation. Maybe it offers simple cash-back rewards on every purchase. Or maybe it’s designed to help you rebuild credit after your score has taken a hit.

After you know exactly what you’re looking for, compare different cards to find the right fit. Everything from the annual fee and interest rate to rewards, benefits, and security is good to know before applying.

You’ll also want to consider how likely you are to qualify for the card before you apply. You’ll likely get approved for great cards with long intro APRs and high rewards rates if you have an excellent credit score. But that can be more difficult if you have bad credit or little credit history. If you’re still building your credit score, look for cards aimed at fair credit or offering pre-approval (which won’t impact your score with a hard credit inquiry).

Should you have multiple credit cards?

Adding more than one credit card to your wallet can be useful. For example, say you opened a student credit card in college to begin building credit. Now, you have a good credit score and your career requires more frequent travel, so you’re looking for a travel rewards card to help maximize your flights and hotels.

Different types of credit cards — cash back, balance transfer, travel rewards, 0% APR , small business cards, etc. — can all serve different purposes. If you have multiple credit cards to serve different needs, you can ensure you get the best value for every purchase.

Just be careful not to add multiple cards at once. Applying for several cards in a short amount of time could result in multiple hard inquiries on your credit report and temporarily reduce your credit score.

How do credit cards work?

Credit cards are a form of payment that allow you to borrow up to a certain amount (your credit limit). Each month, you’ll have a period of time to pay back the amount you charge to your credit card; if you don’t pay your balance in full by then, it will begin to accrue interest at the card’s ongoing APR.

If you use your credit card like a debit card and pay it off in full by the due date each month, you can boost your credit score without incurring interest charges. With a rewards card, you can even get value back on your spending in the form of cash back, miles, or points.

You may also be eligible for added benefits like statement credits, purchase and travel protections, partner discounts, and more. Some credit cards offer introductory 0% APR periods for new purchases or balance transfers to help you avoid interest altogether for a given period. But there are also fees to keep in mind with any card, such as late payment or returned payment fees, foreign transaction fees, cash advance fees, and more.

How to get the most out of your credit card

After you choose the best credit card for you, use it wisely.

Read your credit card agreement carefully to understand exactly how you can qualify for all of your card’s benefits (some may require opting in or enrollment) and how to avoid any unwanted fees.

Also, be aware of your card’s rewards and benefits — and use them. Use your credit card whenever you make purchases that qualify for bonus rewards categories and keep up with your rewards balance. Unless you’re saving up for a big redemption, using your rewards regularly is always good.

Finally, you’ll always get the most value from any credit card by avoiding added interest charges. Paying your balance in full and on time every month can help you maintain a great credit score and avoid potential high-interest debt that can easily creep up when you carry a credit card balance.

Our methodology: How we choose the best credit cards

We use a unique methodology to determine the top cards in each category listed above.

These methodologies include general criteria for any credit card: issuer transparency, interest rate, customer experience, security, access to credit score, and more. But they also are designed to rank cards distinctly within each category. For example, welcome bonuses and redemption options are an important part of our travel card ranking, whereas the length of the 0% APR period is a more important factor for balance transfer cards.

The best credit cards listed above are among the top cards within their individual categories. Not only do they rank highly within our grading system, but we believe they can offer a great value to the widest range of cardholders.

You can find a full rundown of the methodologies we use to rank our best credit cards at each of the links below:

Best cash-back credit cards

Best balance transfer credit cards

Best travel credit cards

Best student credit cards

Best business credit cards

Best travel credit cards for Disney

Best Chase credit cards

Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn't include all currently available offers.

Travel points on credit cards, explained

PayPal Editorial Staff

March 14, 2024

Savvy shoppers can turn everyday spending into exciting adventures by harnessing the power of travel points on credit cards.

Travel points on credit cards are rewards earned for eligible purchases. When someone accumulates enough points, they can redeem them for travel-related expenses like flights, accommodations, or upgrades.

From earning to redeeming, discover the world of travel reward points in this guide.

How do travel points work?

Travel points on credit cards work by rewarding people for their spending. When someone uses their credit card for eligible purchases, they may earn a certain number of points or miles based on the card's rewards program. These points accumulate over time and can be redeemed for travel costs.

Some cards or reward programs also offer flexible redemption options, allowing individuals to transfer points to airline or hotel loyalty programs.

The more someone spends on their card, the more travel points they may accumulate. However, it’s important to practice responsible spending and not make purchases simply to earn more points.

While some credit cards may be specifically noted as travel credit cards or offered in tandem with airline companies, many rewards credit cards can still be used to earn points or cash back to spend on travel or lodging. There may also be rewards programs via cash back apps that offer earning potential for spending with certain travel-related companies or airlines. For example, PayPal users can view travel-related deals and rewards offerings in the Travel category on the PayPal app . Rewards earning and redemption options will vary depending on card provider and/or rewards program.

Potential pros and cons of travel points

Some benefits of travel points may be:

• Free or discounted travel expenses:  Travel points may be redeemed for complimentary or discounted flights, hotel stays, and even upgrades, allowing for cost savings on travel expenses.
• Travel perks:  Some travel rewards cards provide access to airline or hotel loyalty program benefits, such as priority boarding, lounge access, and room upgrades.
• Flexible redemption:  Many programs offer flexible redemption options, including the ability to transfer points to partner airlines or hotels, providing more choices for travelers.

Before signing up for a travel rewards credit card, consider the possible risks of travel points:

• Limited flexibility:  Some travel rewards programs may have restrictions or blackout dates. Points may also have expiration dates — if unused, someone may lose their rewards.
• High annual fees:  Many premium travel rewards cards come with annual fees, which may offset the value of the rewards.
• Increased spending:  To earn travel points, people must use their credit card, which can lead to debt if not managed responsibly.

How to earn travel points

To earn travel points, someone generally needs to use a travel rewards credit card on eligible purchases. Over time, they may accumulate enough points to enjoy a benefit like free or reduced airfare or a discounted hotel stay.

Beyond everyday spending, here are other ways to potentially earn travel points:

• Sign-up bonuses:  Many travel rewards credit cards offer sign-up bonuses when opening a new account and meeting a spending requirement within a specified timeframe.
• Frequent flyer and hotel loyalty programs:  When someone flies with a specific airline or stays at a particular hotel chain consistently, they may accumulate points or miles that can be redeemed for future travel.
• Online shopping portals:  Some airlines and credit card companies have online shopping portals that offer bonus points for making purchases through their platforms.

Accumulating travel points requires responsible financial management, including paying off credit card balances in full each month to avoid interest charges . Additionally, check for any annual fees associated with travel rewards credit cards and ensure that the benefits outweigh the costs.

How to redeem travel points

Travel rewards credit cards may offer several redemption options, from flights or hotels to vacation packages or statement credits. When booking through a rewards portal, people typically have the option to pay with points or a combination of points and cash.

The redemption process may vary slightly depending on the specific travel rewards program or credit card. Always read the terms and conditions of the rewards program and credit card to understand any restrictions, blackout dates, and expiration policies associated with the points.

Learn how to redeem rewards .

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Next time you're planning a vacation, a travel credit card could defray some or all of the costs if it packs the right incentives. Typically, cards with higher annual fees provide the most value with perks like ongoing rewards, free checked bags, airport lounge access or other benefits. But even cards with low or no annual fees make it possible to earn some value toward travel, if you can qualify.

These cards generally require good credit (scores of 690 or higher), and even if you're eligible, it's not worth pursuing one if you can't pay off the credit card bill in full every month to avoid steep interest charges. And if you're working toward paying down existing debt, it might not be worth chasing points and miles until you've made progress on that front.

But as long as travel credit cards align with your financial goals, their potential savings merit consideration — even if you travel just once or twice per year. Explore the flexibility of a general-purpose travel credit card to book travel anywhere, or a branded credit card to book travel with a favorite hotel or airline. Either option may offer money-saving benefits toward your next trip.

Valuable features can lower costs

Offers will vary among general-purpose travel credit cards and airline- or hotel-branded credit cards, but some savings opportunities may include:

If a credit card offers a lengthy list of perks, the value can quickly add up. Here are some features to look out for:

A sign-up offer: Travel credit cards generally come with lucrative sign-up offers that let new cardholders earn a pile of points or miles by meeting a minimum spending requirement. It’s easier to snag if you can strategically time a credit card application around planned purchases during a heavy-spend month or season.

Free checked bags: Some airline credit cards offer free checked bags , which can add up to real savings when applied per person on a round trip. This is one way that Doug Figueroa, a content creator at the YouTube channel Zorito y Doug, makes up the cost of the $150 annual fee on an airline credit card. “The savings are $70 round trip per passenger listed in the same reservation,” he says. 

TSA or Global Entry credit : Some travel cards issue a credit (up to $100) when you use them to pay for a TSA or Global Entry application fee. These expedited airport security screening programs can save time while traveling.

Travel credits: Depending on the card’s terms, travel credits may be used to save money on a variety of travel expenses like rideshare services, airfare or accommodations. 

Airport lounge access: You can skip the pricey airport food with some travel credit cards that offer complimentary airport lounge access . Austin Maxwell, a South Carolina-based content creator at the blog The Maxwells Travel, uses a travel credit card to avoid those costs. “I’m saving $20 to $30 every time I go to the airport because I don’t have to buy food or drinks during a layover or preflight,” he says.

A companion ticket: Some airline credit cards cover the cost of a ticket for a friend or family member. Depending on the card's terms, you may have to pay taxes and fees on the fare, the companion ticket may have an expiration date and/or a spending requirement may apply.

Automatic elite status: You may earn elite status without much effort on some hotel-branded credit cards. Elite status can add up to valuable savings if the program offers free food, bonus points or suite upgrades.  

Free nights: If your favorite hotel has a branded credit card that offers annual free night awards, it can stretch your vacation budget. 

Protections and other benefits

A travel credit card that offers trip delay or cancellation insurance, lost baggage insurance, rental car coverage or other protections may also be of value to you. To qualify for these benefits you typically need to pay for the trip or covered purchase with the eligible credit card. Read the terms carefully to understand the extent of your coverage.

Figueroa says he saved $90 over three days with his card’s primary rental car coverage on a trip to Miami.

“Once you make the online reservation, you must decline all insurance offered by the rental company and pay for everything with your [card],” he says.

High-value reward redemptions

Points or miles on some travel credit cards might lose value if they are used for non-travel redemptions like cash back, gift cards or other options. Travel redemptions typically offer the best value, and you might squeeze out even more value with a general-purpose travel card that allows points to transfer to airline or hotel partners. It’s a strategy that Maxwell uses often to his advantage.

“It’s even better if there’s a transfer bonus associated with that," he says. "Credit card companies offer transfer bonuses — 15%, 20%, 30% bonus — if you are to transfer points to a specific airline.”

He says he has also transferred points to hotel partners to book hotel rooms with them. “It would be the equivalent of getting a hotel room at $120 that’s actually valued at $500,” he adds.

To determine whether to redeem rewards for travel or transfer them to a partner, compare costs by checking the credit card’s booking platform and the partner’s website. Also factor in whether rewards transfer on at least a 1:1 ratio, meaning that you'll get the equivalent value in points or miles transferred.

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Find the best credit card for you

Robinhood gold card announced — earn 3% cash back everywhere, this card isn't open to applications yet, but you can get on the waitlist..

The investing app Robinhood is making headlines with the announcement of the Robinhood Gold Card . This credit card features a minimum of 3% cash back on all purchases and there's even a limited-edition 10-karat gold version. When compared to other cards, that rewards rate is typically capped after a certain amount of spending or to a specific category of purchases (i.e. gas or dining), but with this card you'll be able to earn 3% cash back on all purchases — with no limit on the amount you can earn.

It's not open for applications yet, but you can add yourself to the waitlist . While it's technically a no-annual-fee card , it's only open to Robinhood Gold members, which costs $5/mo or $50 a year.

Below, CNBC Select has the details on what you need to know about the card's features and benefits.

Robinhood Gold Card

5% cash back on travel purchased through the Robin travel portal; 3% cash back on all other purchases

Welcome bonus

Requires a Gold membership which costs $5 a month or $50 a year

Regular APR

20.24% - 29.99% variable

Balance transfer fee

Foreign transaction fees.

Terms apply.

• High cash-back rate on everyday purchases
• No foreign transaction fees
• Robinhood Gold subscription required

Robinhood Gold Card benefits

On top of the 3% cash back everywhere, cardholders also receive 5% cash back on travel purchases made through the Robinhood travel portal. Other benefits include:

• Trip interruption protection
• Travel and emergency assistance
• Roadside Dispatch
• Visa Signature Concierge
• Rental car collision damage waiver
• Purchase security
• Return protection
• Extended warranty protection

If you're on the Robinhood Gold Card waitlist and refer 10 people to both sign up for a Robinhood Gold subscription and join the Gold Card's waitlist too, you are eligible to receive a 10-karat gold version of this card. Learn more at Robinhood .

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Robinhood gold membership benefits.

Robinhood offers a 1.5% APY on uninvested cash sitting in your brokerage account , but once you upgrade to a paid Gold membership you'll receive a 5% APY on those balances. Gold members also receive a 3% match on eligible contributions to a Robinhood IRA . If you can take advantage of these perks, the Gold subscription fee may be worth it, and the benefits you receive from a Robinhood Gold Card are icing on the cake.

Robinhood Retirement

Minimum deposit and balance.

There is a $20 minimum to invest in the portfolio Robinhood recommends to you

Robinhood doesn't charge any management fees or commission fees for the IRA account. However, an IRA Match Early Withdrawal Fee may apply in some circumstances

The Robinhood IRA offers a 1% match on eligible contributions up to IRA contribution limits. Limitations apply.*

Investment vehicles

Traditional IRA and Roth IRA

Investment options

Stocks and ETFs (users can invest in Robinhood's selection of 5–8 recommended ETFs, pick their own, or do a combination of both). According to the website, eligible users will soon be able to trade options in their IRA

Educational resources

Robinhood offers education materials on their website

Terms apply. Does not apply to crypto asset portfolios.

*The IRA Match is automatically added after eligible contributions from an external bank account. Keep the contributions in your IRA for at least 5 years from the date you contribute.  IRA Match FAQ . Other fees may apply. See Fee Schedule  for more details.

This membership tier also comes with a handful of other features such as larger instant deposits and access to Morningstar research and NASDAQ Level II market data.

Alternate cards to consider

If you don't want to wait for the Robinhood Gold Card to open for applications or you aren't interested in joining Robinhood Gold, these alternate cards can help you start earning rewards right now.

The Wells Fargo Active Cash® Card earns an unlimited 2% cash rewards on all purchases and new card members can earn a $200 bonus after meeting the card's spending requirement (spend $500 in purchases in the first 3 months). This card earns 1% less than the Robinhood Gold Card on non-bonus spending, but it has no annual fee and you have to pay at least $50 a year for a Robinhood Gold membership. To earn $50 in rewards at 1%, you have to spend $5,000, so you'll get a head start on earning cash back with the Active Cash Card , especially when you factor in the welcome bonus.

Wells Fargo Active Cash® Card

Unlimited 2% cash rewards on purchases

Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months

0% intro APR for 15 months from account opening on purchases and qualifying balance transfers; balance transfers made within 120 days qualify for the intro rate

20.24%, 25.24%, or 29.99% Variable APR on purchases and balance transfers

3% intro for 120 days from account opening then BT fee of up to 5%, min: $5

Foreign transaction fee

Credit needed.

Excellent/Good

See rates and fees , terms apply.

The Discover it® Cash Back earns 5% cash back on up to $1,500 in combined purchases in rotating quarterly categories (when you activate), then 1% cash back (which you also earn on all purchases outside of the quarterly categories). The welcome offer makes this card even more enticing because it matches the cash back new cardmembers earn for the first year. With this offer, you're effectively earning 10% cash back from spending that qualifies for the rotating bonus categories for the first year, and then 2% cash back on all purchases for the remainder of that year.

Discover it® Cash Back

Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases-automatically.

Discover will match all the cash back earned for all new cardmembers at the end of your first year.

0% for 15 months on purchases

17.24% to 28.24% Variable

3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*

Good / Excellent

* See rates and fees , terms apply.

Read our Discover it® Cash Back review.

Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox.  Sign up here .

Compare investing products

Bottom line.

Robinhood has announced a new cash-back credit card that will be available for its Gold members. The Robinhood Gold Card will earn at least 3% cash back on all purchases, which is an exceptional return for everyday purchases. A Robinhood Gold membership is relatively affordable compared to most credit card annual fees, which will make this card one of the best cash-back credit cards once it opens for applications.

Why trust CNBC Select?

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every personal finance article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products .  While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

Catch up on CNBC Select's in-depth coverage of  credit cards ,  banking  and  money , and follow us on  TikTok ,  Facebook ,  Instagram  and  Twitter  to stay up to date.

• What are A.M. Best ratings for insurance? Liz Knueven
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Credit card rewards

Table of  contents

How to Save Money on Flights, Hotels, and Other Travel Expenses

Table of contents, key points about: saving money on travel.

Travel websites often offer deals to save money on flights and hotels, and travel credit cards may allow you to redeem miles to use on these and other travel expenses.

With a  Discover it® Miles credit card, you can earn unlimited 1.5x Miles on travel purchases and all your everyday purchases, which you can then redeem in a variety of ways.

You can save money by traveling during off-peak times, flying midweek, or booking a travel package that includes airfare, hotel, and a rental car.

Those travel photos you see on social media that look like a million dollars have a secret—many hot locales may be more accessible than you think. No matter your destination, from the top tourist spots to the places off the beaten trail, researching transportation and lodging, looking for deals, and using your credit card to earn rewards and  redeem  them when possible can be just some of the ways you can save money on travel.

Here are more tips for how to save money while traveling.

Save money by traveling off-peak

If you can travel during off-peak times, or the weeks just before or just after peak travel times (what’s known as the shoulder season), you might save serious cash on a dream destination. Many factors determine peak season. In the U.S., peak times are usually summer, when the days are long and warm, and schools are out. But in South America or Australia, January is summer and March is the shoulder season.

How to save money on flights

Saving on airfare  is probably near the top of your list, but there’s been so much written on the subject that it makes more sense to reduce it to the basics.

With so many travel sites that offer flight and hotel deals, you can almost always find a way to save on a trip. If you want a flexible travel card that lets you earn Miles on everyday purchases and redeem miles for cash to use on travel, consider a  Discover it® Miles  credit card. Your morning coffee, online shopping, and even groceries automatically earn unlimited 1.5x Miles on every dollar of every purchase. And we’ll automatically match all the Miles you’ve earned at the end of your first year. There is no limit to how much we’ll match. 1 Learn More

Fly midweek

Weigh the cost of the days you plan to travel. For example, Sunday prices can soar as travelers race home before the workweek, but flights on a Thursday could be ideal.

Plan your flights ahead

Many trip-planning websites allow you to set price alerts for chosen destinations. And some airlines offer discounted rates for taking connecting flights instead of nonstop. You might even be able to include hotel and car rental reservations with a package that costs less than it would if you had booked each element separately.

Pick your destination based on airfare

Instead of deciding where to go and then looking for the cheapest airfare, it can be easier to save money by choosing your destination by how much it costs to get there.

Watch for savings within 24 hours

U.S. law requires that airlines allow you to cancel your booking within 24 hours. This means that you can save money by booking a lower airfare if the price drops within one day.

Did you know?

If you often travel by air, having a credit card built for airline travel can be a great way to build rewards for your future trips. Travelers who want more flexibility may appreciate the unlimited Miles and great benefits they can find on a Discover Card.

How to save money on hotels

Don’t be afraid to ask hotel staff about promotions or specials. If you’re traveling in a shoulder or off-season, you may be able to score a three-star room for a one-star price. Travel websites can offer significant deals and opportunities to save money by bidding on properties or taking advantage of lower rates for places that want to fill rooms fast.

For hotels, consider booking your room at the last minute to take advantage of cancellations. If you do see a low price on a third-party site, consider asking the hotel directly if they’ll match the price.

Some hotels give their best rates to members of their loyalty program, so signing up can let you save money.

Ways to save money when you travel by car

Road trips often seem like the best option for cost-conscious travelers, but driving can be quite expensive.

Before you go, get a tune-up so you can avoid wasting money on emergency repairs during your trip. Portable devices that allow you to jump-start your car or inflate your tires can be inexpensive and well worth the cost.

Before you leave, create at least a rough itinerary so you’ll know if you’ll need a bathing suit, hiking shoes, gym clothes, camping equipment, or other essentials. Pack plenty of snacks and a cooler full of drinks and plan to stop at grocery stores along the way to create less expensive meals.

Consider the cost of gas and tolls as well. Parking, too, could be a hassle depending on your destination, and a pricey one at that. Apps and online tools can help you find the cheapest gas in your area. You might also be able to save money by filling up well outside of major cities.

Ways to save money on other travel expenses

Account for dining in your travel budget.

When it comes to dining on vacation, you can save money while still enjoying the local cuisine. If your lodging comes with a kitchen, shop for local groceries to prepare meals to take with you. Stocking up on little things like water and snacks can wind up saving you money. If food feels like a key part of your travel, one restaurant meal a day can be a budget-friendly option.

Don’t let shopping derail your travel budget

Shopping can feel like a travel treat that may allow you to experience a different aspect of your destination. But it’s also something that could break your travel budget.

One way you could save money for travel is to make sure you know the exchange rates and where to exchange. Exchanging cash at a convenient airport kiosk will typically charge you an unfavorable rate, so either obtain cash from your bank before leaving or use a regional ATM once you arrive.

Open-air and flea markets may be good places to find unique gifts that you can sometimes negotiate on price.

If you’re visiting multiple countries or regions, save your shopping for the most affordable destination.

Save money on popular attractions

Museums, amusement parks, and other attractions can tack big expenses onto an already expensive jaunt. You may be able to save money on admission by booking in advance or using discounted rates if you qualify, such as military, student, AAA, or senior.

Many amusement parks also offer a variety of entertainment choices and great discount packages that could save you money.

How to Save Money on Cruises

If you want to hit the high seas on a cruise, research when the best deals are offered before your departure date. And if you live close to the coast, you may be able to save money on a flight if you board closer to home.

Also, make sure enough is included in the pricing option you select and read the fine print. The least inclusive option might save on the base price of a cruise, but you may be on the hook for lots of additional onboard expenses.

If you think you can’t afford a vacation, think again. These tips can save you money on flights, hotels, and other travel expenses that might get you closer to your travel budget than you think. Before you travel, be sure to inform your banks and  credit card  companies that you’ll be accessing accounts from unusual locations. Otherwise, a charge from a foreign merchant may set off fraud alerts. Discover  makes it easy to register your travel plans  online or through our mobile app.

Redefine travel

Learn about Discover’s travel card

See rates, rewards and other info

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How to Choose the Best Travel Credit Card for You

What's the Best Rewards Credit Card for People Who Don't Travel?

Travel Hacks to Help You Pack Like a Pro

How Do Credit Card Miles Work?

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Discover Match ® : We’ll match all the Miles rewards you’ve earned on your credit card from the day your new account is approved through your first 12 consecutive billing periods or 365 days, whichever is longer, and add it to your rewards account within two billing periods. You’ve earned Miles rewards only when they’re processed, which may be after the transaction date. We will not match: rewards that are processed after your match period ends; statement credits; rewards transfers from Discover checking or other deposit accounts; or rewards for accounts that are closed. This promotional offer may not be available in the future and is exclusively for new cardmembers. No purchase minimums.

Legal Disclaimer:  This site is for educational purposes and is not a substitute for professional advice. The material on this site is not intended to provide legal, investment, or financial advice and does not indicate the availability of any Discover product or service. It does not guarantee that Discover offers or endorses a product or service. For specific advice about your unique circumstances, you may wish to consult a qualified professional.

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The Best Banks for Avoiding Overdraft Fees

• Reviews on the Best Banks for Avoiding Overdraft Fees

What to Look for in Overdraft Policies

Overdraft protection services, how to avoid overdraft fees.

• Why You Should Trust Us

Best Banks for Avoiding Overdrafts in 2024

Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate banking products to write unbiased product reviews.

When you overdraw from your checking account, banks may charge you an overdraft fee because you no longer have a positive balance. This could result in you having an even higher negative balance that you don't have the money to pay off.

If you prioritize finding a bank account that has minimal overdraft fees, you have plenty of options. Here are our top picks on the best banks for overdraft fees. Our top picks have eliminated overdraft fees, or they have free overdraft protection that lets you transfer funds from a linked savings account. 

Ally Spending Account

Axos bank rewards checking, capital one 360 checking, discover cashback debit account, alliant high-interest checking account, connexus xtraordinary checking account, citi access checking, truist one checking account.

All of our top picks, except Connexus Credit Union, have eliminated overdraft fees. All of the financial institutions on our list are protected by FDIC or NCUA insurance. Your money is safe at a federally insured financial institution. When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.

Compare the Best Banks for Avoiding Overdraft Fees

no monthly service fee

0.10% to 0.25%

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Spending buckets to manage expenses
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive APY
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No initial deposit
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum account balance
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly service charge
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Connect your account with Zelle
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Easy-to-use mobile app
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Early direct deposit
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Reimburses up to $10/month in out-of-network ATM fees
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Online bill pay
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. 24/7 customer service
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No overdraft fees
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Overdraft protection
• con icon Two crossed lines that form an 'X'. No physical branch locations
• con icon Two crossed lines that form an 'X'. No way to deposit cash
• You can deposit checks right from your smartphone
• Manage expenses by creating spending buckets
• Ally reimburse's up to $10 per statement cycle for fees charged at other ATMs nationwide
• Transfer money with your voice through Ally Skill™ for Amazon Alexa
• Interest compounded daily, paid monthly
• FDIC insured

Earn up to a $300 welcome bonus when you use the promo code AXOS300 to apply for a Rewards Checking account and have qualifying direct deposit(s) by 6/30/24

up to 3.30%

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. High APY
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Unlimited out-of-network ATM reimbursements
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly maintenance fees
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No non-sufficient funds fees
• con icon Two crossed lines that form an 'X'. $50 opening deposit
• con icon Two crossed lines that form an 'X'. No APY if you can't meet qualifications
• con icon Two crossed lines that form an 'X'. Few mobile app reviews

Axos Bank has strong high-yield savings, checking, and money market accounts if you'd like to avoid monthly service fees. But, you can find higher interest rates at some of the best online banks.

• Use promo code AXOS300 and apply by June 30th, to earn up to a $300 bonus!
• Zero monthly maintenance fees
• Zero overdraft or NSF fees
• Zero minimum monthly balance reqs
• Unlimited domestic ATM fee reimbursements
• Online debit card management
• Simple, 3-step process for direct deposit
• Only $50 to open an account

No minimums, no fees, no worries.

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. 0.10% APY on all account balances
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No opening deposit or minimum account balance
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly service fee
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No foreign transaction fee
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Range of overdraft protection options
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Processes direct deposits up to 2 days early
• con icon Two crossed lines that form an 'X'. Doesn't reimburse out-of-network ATM fees
• con icon Two crossed lines that form an 'X'. Limited access to customer service by phone

Capital One is a strong bank overall. You'll earn competitive interest rates on online savings accounts and CDs.

• Over 70,000 free ATMs nationwide
• Branches in NY, LA, TX, MD, VA, NJ, and Washington, DC

Earn cash back rewards with no fees. Start earning 1% cash back today (see website for details).

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Earn up to 1% cash back on up to $3,000 in purchases per month (See website for details)
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Over 60,000 in-network ATMs
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Get paid early with direct deposit through Early Pay
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Enroll in free overdraft protection
• con icon Two crossed lines that form an 'X'. Debit card can only be used in the US, Canada, Mexico, and the Caribbean
• con icon Two crossed lines that form an 'X'. Only 1 branch location
• Earn 1% cash back on up on up to $3,000 per month in eligible debit card purchases (See website for details)
• 100% US-based customer service available 24/7
• No opening deposit or minimum account balance
• No monthly maintenance fees
• Over 60,000 in-network ATMs

No monthly service fess. NCUA Insured.

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Earn interest
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum opening deposit
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly service fees
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. $20/month in out-of-network ATM fee refunds
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No incoming wire transfer fee
• con icon Two crossed lines that form an 'X'. Compounds interest monthly, not daily
• con icon Two crossed lines that form an 'X'. $25 outgoing wire transfer fee

Alliant is one of the best credit unions out there, especially if you want to earn high interest rates on savings, checking, and certificates.

• Several ways to become a member; the easiest is to join Foster Care to Success (Alliant will cover your $5 membership fee)
• 80,000+ free ATMs
• Alliant does not charge overdraft fees; you can overdraw, but you will not pay a fee. You may also link checking to a savings account and select for funds to automatically transfer to cover overdrawn amount.
• Interest compounded monthly
• Federally insured by the NCUA

0% to 1.75%

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Ability to earn a high APY
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No out-of-network ATM fee
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Refunds up to $25/month in out-of-network ATM fees charged by providers
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Multiple overdraft protection options
• con icon Two crossed lines that form an 'X'. Interest compounds monthly, not daily
• con icon Two crossed lines that form an 'X'. $4 overdraft fee
• Become a Connexus member by donating $5 to the Connexus Association
• 54,000+ free ATMs
• Subscribe to e-statements to earn APY. You also must either make 15 debit card transactions per month OR spend $400 per month with your debit card
• Earn 1.75% APY on balances up to $25,000; earn 0.25% APY on balances over $25,000

• Earn $300 cash bonus by opening an eligible checking account with qualifying direct deposit and completing required activities (offer ends 7/8/24)

$5 monthly service fee

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No opening deposit
• con icon Two crossed lines that form an 'X'. No paper checks
• con icon Two crossed lines that form an 'X'. $2.50 fee for using out-of-network ATMs
• con icon Two crossed lines that form an 'X'. BBB gives Citi an F in trustworthiness
• The most basic Citi checking account
• Access to over 650 branches in the US
• No minimum opening deposit

Earn $400 for opening a new Truist One Checking account online using code TRUIST400AFL24 and completing qualifying activities (offer expires June 26, 2024)

$12 monthly services fee

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Easy to waive $12 monthly fee
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Earn additional awards on eligible Truist credit cards
• con icon Two crossed lines that form an 'X'. $50 minimum opening deposit
• con icon Two crossed lines that form an 'X'. $12 monthly service fee if not waived
• con icon Two crossed lines that form an 'X'. $3 paper statement fee
• con icon Two crossed lines that form an 'X'. $3 out-of-network ATM fee
• Earn $400 for opening a new Truist One Checking account online using code TRUIST400AFL24 and receive at least one qualifying direct deposit of $500 or more and complete at least 15 qualifying debit card purchases within 90 days of account opening (offer expires June 26, 2024)
• Over 2,000 branches and 3,000 ATMs in the Southeast
• To waive the $12 monthly service fee, do one of the following each month: Make $500 or more in direct deposits per statement cycle, maintain a combined total balance of $500 in all eligible Truist accounts before each statement cycle end date, have a personal Truist credit card or mortgage or consumer loan (excluding LightStream), link to a Small Business Checking Account, or be a student under age 25
• To waive the $3 paper statement fee, sign up for paperless online statements
• Account has a tiered system, and each tier comes with more benefits; reach the next tier when your average monthly balance hits $10k, $25k, $50k, and $100k

Best Banks For Avoiding Overdraft Fees: FAQs

Overdraft fees occur when you try to take more money out of your account than you have. The exact fee will depend on what bank you use, but banks can charge between $0 to $38 per overdraft.

Usually, you'll connect your checking account to another account, credit card, or line of credit that will be automatically charged if you overdraft your account. There can be a transfer fee involved, but it will generally be less than an overdraft fee would be.

Yes, most banks allow you to opt out of overdraft fees. In that case, if you try to make a purchase that you don't have the funds for, the transaction will just be denied.

You can get your overdraft fees refunded at several banks, such as Chase, Wells Fargo, and Fifth Third Bank , under certain circumstances, such as when you put money back into the overdrafted account within a certain amount of time. 

Banking with an institution that provides overdraft forgiveness and protection can help you avoid overdrafts. Otherwise, you'll want to monitor your spending, set up low balance alerts, and create a budget for yourself to avoid overspending.

Best Banks for Overdrafts Reviews

Ally is a strong choice if you are comfortable with an online-only banking experience. In 2021, the online bank eliminated overdraft fees on all accounts. Ally also has two free overdraft protection options: an overdraft transfer service and CoverDraft. You can use one service or both.

With the overdraft protection transfer service, you'll link your checking account to your savings account. If you overdraw from your account, Ally will transfer increments of $100 from your savings account to cover the transaction.

Meanwhile, CoverDraft is a service that provides up to $250 in temporary overdraft coverage when you have debit card purchases, automatic payments, checks, or ACH transfers from other banks that result in a negative balance on your account.

To be eligible for CoverDraft, you'll need to deposit at least $100 in your account and maintain your balance for 30 days. Once you're eligible, you'll qualify for $100 in temporary overdraft coverage. If you'd like to receive up to $250 in temporary overdraft coverage, you'll have to receive a qualifying direct deposit of at least $250 for two months in a row.

The Ally Spending Account also might also be a good option if you'd like to have tools to help manage your money. For example, Ally lets you create spending buckets to help you set money aside for particular expenses. You'll be able to label your buckets with names like "groceries" or "rent."

Ally may close your checking account if you maintain a negative balance for more than 45 days.

Ally Spending Account Review

Axos is a great choice if you're searching for a high-yield checking account that doesn't charge overdraft fees or non-sufficient funds fees. Axos also offers free overdraft protection that links your checking account to a savings account.

You'll earn interest on Axos Bank Rewards Checking balances up to $50,000 if you do the following:

• Earn 0.40% APY (Annual Percentage Yield) when you receive at least $1,500 in direct deposits in a month. You have to meet this requirement to be able to earn any additional interest.
• Earn 0.30% APY when you make 10 debit card transactions in a month (minimum $3 per transaction) or you need to sign up for Account Aggregation/Personal Finance Manager.
• Earn 1.00% APY if you keep at least a daily average of $2,500 in an Axos Managed Portfolios Invest Account monthly.
• Earn 1.00% APY if you keep at least a daily average of $2,500 in an Axos Self-Directed Trading Invest Account monthly.
• Earn 0.60% APY if you make a monthly Axos consumer loan payment with your Reward Checking account

If you accomplish all goals in a month, you earn the maximum available APY.

Account balances over $50,000 won't earn interest. If you would like to maintain a high account balance, you may prefer another high-yield checking account.

Axos Bank Review

Capital One 360 stands out because it has one of the strongest free checking accounts out there. Capital One 360 Checking has no monthly service fees and no overdraft fees. At Capital One 360, you also have two solid overdraft services: free savings transfers and no-fee overdrafts.

With free savings transfers, you'll link your checking account to a savings account. If you overdraw from your checking account, Capital One will make one transfer to cover your overdraft.

No-fee overdraft is a service where Capital One approves check payments, bill payments, or recurring debit payments even if it results in a negative balance for your account. To qualify, you'll need to receive at least $250 in direct deposits during two of the three previous months. 

If you do not select one of the overdraft services mentioned, Capital One 360 automatically declines transactions that would make your account have a negative balance.

Capital One Review

You might like Discover if you'd like to get rewards checking account that doesn't charge overdraft fees or non-sufficient funds fees. The Discover® Cashback Debit Account lets you earn 1% cash back on up to $3,000 of purchases per month (see website for details). 

The online bank also offers a free overdraft protection program that links your checking account to a savings account. Discover's Overdraft Protection program covers online bill payments, ACH transfers initiated at another bank, and checks. 

If you don't sign up for overdraft protection, any transactions that would create a negative balance in your account will be denied.

Discover Bank Review

If you prefer an online credit union over a bank, Alliant is an excellent option. Alliant ranks as one of our best credit unions .

The online credit union eliminated overdraft fees on checking accounts in 2021. Alliant also has free overdraft protection program that lets you link your checking account to a savings account to cover overdrafts.

You'll also notably earn 0.25% APY on the Alliant High-Interest Checking Account , regardless of your balance.

Opening an account with a credit union usually entails specific membership requirements. Alliant is a credit union anyone can join as long as you're in the US and you donate $5 to Foster Care to Success.

Alliant Credit Union Review

Connexus Credit Union is also featured in our best credit unions guide. Connexus Credit Union has a $4 overdraft fee, which is less than what most financial institutions generally charge for overdrafts. The online credit union also has a free overdraft protection program that lets you transfer money from your savings account to restore a negative checking account balance.

You might like the Connexus Xtraordinary Checking Account if you use your debit card frequently and/or spend at least $400 per month with your debit card. That way, you can earn a solid interest rate.

Credit unions require membership to open bank accounts. To become a member of Connexus, make a one-time $5 donation to the Connexus Association; be an employee, retiree, member, student, student graduate, or relative of a member of certain organizations; live in Minnesota, Ohio, or Wisconsin; or be a relative, spouse, or housemate of a Connexus member. 

Connexus Credit Union Review

Citi is a solid choice if you want to open a checking account at a national bank. Citi is a national bank with branches in California, Connecticut, Florida, Illinois, Maryland, Nevada, New Jersey, New York, South Dakota, Virginia, Washington, DC, and Puerto Rico. You can also open online accounts if you do not live in a state that has a branch.

In 2022, Citi eliminated overdraft fees , returned item fees, and overdraft protection fees on bank accounts. It's also fairly easy to waive the monthly fees for its lowest-tier checking accounts like the Citi Access Checking (a checkless bank account) ($5 monthly service fee). 

You'll have to pay attention to monthly service fees and how to waive them because it varies depending on which accounts you get.

Citi Review

Truist Bank could be another suitable option if you favor brick-and-mortar banks instead of online-only financial institutions. Truist Banks is primarily on the East Coast, with branches in Alabama, Arkansas, Georgia, Florida, Indiana, Kentucky, New Jersey, Maryland, Mississippi, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia, and Washington, DC.

In 2022, Truist launched two new checking accounts to help with avoiding overdraft fees. It also eliminated fees for returned items and overdraft protection transfers.

The Truist Confidence Account is a checkless checking account that doesn't charge overdraft fees. You can utilize overdraft protection to cover overdrafts if you have a Truist Confidence Savings Account; otherwise, any transaction that exceeds your account balance may be denied or returned.

The Truist One Checking also doesn't charge overdraft fees and has more overdraft options (although, it also has a higher monthly maintenance fee). You can link the Truist One Checking to another Truist bank account or potentially use a service called $100 Negative Balance Buffer. 

With a $100 Negative Balance Buffer, you can overdraw up to $100 from your account. To qualify for the service, you'll need to have an account open for at least 35 days, maintain a positive account balance, and receive at least one direct deposit of $100 for two months in a row. Also, bear in mind that you'll need to continue to receive monthly direct deposits of $100 or more to remain qualified for the service.

With Truist checking accounts, you'll want to be mindful of monthly service fees if you don't meet certain requirements each month. Truist Confidence Account has a $5 monthly service fee, and the Truist One Checking has a $12 monthly services fee. 

Truist Bank Review

Bank Alternatives for Avoiding Overdraft Fees 

Our top picks stood out because they had appealing features. While the accounts listed below weren't among our picks, you still might consider one of these options.

• SoFi Checking and Savings: SoFi doesn't charge overdraft fees, but it will decline your purchase if you overdraw by more than $50. Other online banks may have free overdraft protection plans that let you overdraw more money.
• EverBank Yield Pledge Checking : EverBank has free overdraft protection available, but our top picks for online banks may be easier to open because they have lower minimum opening deposit requirements. 
• Quontic High Interest Checking Account: Quontic doesn't charge overdraft fees, but it requires at least $100 to open an account. Our top picks for online banks let you open an account with less. 
• NBKC Everything Account: The NBKC Everything Account doesn't charge overdraft fees. It's a hybrid checking/savings account so you'll have to be comfortable with keeping all of your money in one account.
• CIT Bank eChecking Account: CIT Bank doesn't charge overdraft fees, but its checking account requires a $100 minimum opening deposit. Our picks for best online banks  may be more suitable if you're searching for an account with more lenient opening requirements. 
• Chase Secure Banking℠ : Chase Secure Banking is the only checking account at Chase that doesn't charge any overdraft fees. If you would prefer a checking account that doesn't have a monthly service fee, you'll still have to be mindful of the bank's $34 overdraft fee. Our top picks for brick-and-mortar banks have multiple checking account options that do not charge overdraft fees.
• Bank of America Advantage SafeBalance Banking® Account: The Bank of America SafeBalance Banking Account is the only checking account at Bank of America that doesn't charge any overdraft fees. However, if you would prefer one of Bank of America's other checking accounts, keep in mind there's a $10 overdraft fee. Our favorite brick-and-mortar banks have multiple checking account options that do not charge overdraft fees.
• Wells Fargo Clear Access Banking : Wells Fargo Clear Access Banking is the only checking account at Wells Fargo that doesn't charge any overdraft fees. If you would rather get another Wells Fargo checking account, there's a $35 overdraft to keep in mind. In all, Wells Fargo wasn't a top pick because other brick-and-mortar banks have multiple checking accounts that do not charge overdraft fees. 
• U.S. Bank Safe Debit account: The U.S. Bank Safe Debit Account doesn't charge overdraft fees but has a monthly service fee. Our top picks for brick-and-mortar banks also have more than one checking account that doesn't charge overdraft fees.
• TD Bank Convenience Checking Account: The TD Bank Essential Banking Account doesn't have overdraft fees but there's a $15 monthly service fee (the monthly service fee can be waived for minors or with a $100 daily balance). If you choose another TD Bank checking account, you may have to be mindful of a $35 overdraft fee. Our top picks for brick-and-mortar banks have multiple options with zero overdraft fees.
• Fifth Third Momentum® Checking: At Fifth Third Bank you'll have to be mindful of a $37 overdraft fee. You'll have to see whether any of the overdraft protection plans might be a suitable option for waiving overdraft fees. 
• Citizens Bank One Deposit Checking Account: Citizens Bank has a $35 overdraft fee. Our top picks for brick-and-mortar banks might be more appealing if you would rather find options that do not charge overdraft fees.
• PNC Bank Virtual Wallet®: PNC Bank has a $36 overdraft fee. You'll have to see whether any of the overdraft protection plans might be a suitable option for waiving overdraft fees.
• Regions Bank LifeGreen® Checking Account: At Regions Bank, you'll have to be mindful of a $36 overdraft fee. Our favorite brick-and-mortar banks have more than one checking account with zero overdraft fees. 
• Comerica Access Checking Account: Comerica charges anywhere from $26 to $38 on overdraft fees. Our favorite brick-and-mortar banks have options that do not charge these types of fees.
• Consumers Credit Union Free Rewards Checking Account: Consumers Credit Union has a $30 overdraft fee. Our top picks for credit unions have lower fees.
• Bethpage Federal Credit Union Free Checking Account: Bethpage Credit Union has a $30 overdraft fee. Our top picks for credit unions have lower fees.
• Premier Members Credit Union Smart Checking Account: Premier Members Credit Union charges a $32 overdraft fee, which is higher than our top credit union picks.
• Affinity Plus Federal Credit Union Better Than Free Checking Account: Affinity Plus Credit Union charges a $15 fee if you have a negative balance beyond $100. Our top credit union picks have lower fees.
• Chime® Checking Account: Chime doesn't charge overdraft fees, but it will decline your purchase if you overdraw by more than $200. Our top picks for online banks may have free overdraft protection plans that let you overdraw more money.
• Dora Financial Everyday Checking Account: Dora is an online banking platform with a free Bank On-certified checking account. While this checking account doesn't allow you to overdraw from your account, our top picks have overdraft protection programs that might be more appealing. Other online banks may have free overdraft protection plans that let you overdraw more money.
• Spruce Spending Account: The Spruce Spending Account only allows you to overdraw up to $20 per month if you receive at least $200 in direct deposits per month. Other online banks may have free overdraft protection plans that let you overdraw more money.

Bank Trustworthiness and BBB Ratings

The Better Business Bureau assigns companies grades, ranging from F to A+. Strong BBB scores indicate that companies respond effectively to customer complaints, advertise honestly, and are transparent about business practices. A strong BBB grade doesn't guarantee you'll have a smooth relationship with a company, though. 

Here are the BBB grades for our top picks:

Ally has an A rating because it has some unresolved customer complaints on the BBB website. 

Citi has an F rating because it has a high volume of customer complaints on the BBB website, and it has failed to respond to many customer complaints. 

Capital One, Discover, and Citi have been involved in recent public controversies. 

Capital One used to have an account called 360 Savings. In 2019, Capital One launched the new 360 Performance Savings Account, which paid a higher interest rate. Many customers thought their old savings accounts would transition into this new one, but they actually had to open a new 360 Performance Savings Account to earn the higher rate. In the lawsuit, the plaintiffs' lawyers allege that Capital One didn't inform 360 Savings customers that these were two distinct accounts, or that 360 Performance Savings paid a higher rate. However,  Capital One wants this case dismissed  because it claims people had every opportunity to learn these facts on their own. This case is still ongoing.

In 2024, Discover settled a class action lawsuit for almost $1 million . The lawsuit claimed that Discover denied Deferred Action for Childhood Arrivals, or DACA, recipients loans because of their immigration status. In the settlement, Discover agreed to rewrite its lending rules to make DACA recipients equally eligible for loans as comparable U.S. citizens.

In 2023, Citi was required to pay $25.9 million dollars by the Consumer Financial Protection Bureau. The Bureau says that Citi intentionally discriminated against Armenian American credit card applicants from 2015 to 2021. Of that $25.9 million, $1.4 million of that payment will go to affected applicants.

In addition, Citi is currently being sued for sexual harassment by a managing director at the company, Ardith Lindsey. Citi hasn't admitted to any wrongdoing, and this case is ongoing.

Low Fees and Clear Terms

First and foremost, you should try to find banks that don't charge overdraft fees at all, or banks with low overdraft fees. We've listed several banks above that don't charge overdraft fees, but still allow you to overdraft your account up to a certain amount. 

If a bank does have overdraft fees, make sure you understand when you'll be charged those fees, and how much you'll be charged for them. Look out for fine print that might indicate you'll have to pay a higher fee than you're prepared for.

Many banks allow you to set up overdraft protection services by linking another account, credit card, or line of credit to your checking account. If you end up overdrafting your account, the bank will either transfer money from the savings account or put the charge on the credit card or line of credit instead. 

There might be a transfer fee associated with this service, but it will almost definitely be less expensive than the overdraft fee you would have otherwise been charged.

If you choose to set up overdraft protection services, you'll still want to keep an eye on your spending to make sure you're not cutting into your savings or putting money on a credit card that you can't pay off.

Options for Fee Waivers and Alerts

Some banks let you refund your overdraft fees under certain circumstances, such as if you restore a positive account balance within a day or if you haven't overdrawn your checking account before. In addition, many banks let you set up low balance alerts to let you know when you're about to run out of money in your account. 

Check with the bank you're interested in to see if they offer any of these services.

Linking Accounts for Automatic Transfers

One of the most common ways to set up overdraft protection services is to link a savings account to your checking account. If you overdraft your account, the money will come out of your savings account instead.

You might prefer this over other kinds of overdraft protection , because you won't end up accidentally accruing a debt you can't repay. However, you'll want to watch out for transfer fees. Also, keep in mind that you could end up accidentally cutting into your savings with this method.

Overdraft Lines of Credit

Setting up an overdraft line of credit will let you borrow money from a line of credit to pay off any excess charges you make. This can be helpful in avoiding overdraft fees, but keep in mind that setting this up could result in you having high-interest-rate debt that you don't have the money to pay off.

Overdraft Forgiveness Programs

Several banks, such as Wells Fargo , will refund any overdraft fees under specific circumstances. Some banks refund overdraft fees if the excess charge is under a certain threshold, some banks refund fees if you put money back into your account before a certain amount of time passes, and some banks refund the first few overdraft fees you accrue.

While even the best overdraft forgiveness programs aren't as good as not charging overdraft fees at all, it can still be helpful if you do end up accidentally overdrafting your account. Check with your bank to see how to get overdraft fees refunded .

Monitoring Account Balances

Overdraft protection and management are both important parts of avoiding overdraft fees. The best way to avoid overdraft charges is to keep an eye on your account balance and avoid making purchases if you don't have enough money in your account. This includes making sure you have enough money to make automatic payments, such as rent, insurance, or utilities payments. 

Setting Up Account Alerts

Many banks offer financial tools to prevent overdrafts, such as account alerts. Account alerts will let you know if your account balance goes under a certain amount of money. Check with your bank to see if it offers this feature.

Opting Into the Right Overdraft Protection Services

If you opt into overdraft protection services like the ones listed above, you can avoid paying overdraft fees. Just make sure you're not signing up for services that will end up costing you more money in the long run, such as with overdraft protection through lines of credit.

Why You Should Trust Us: Our Expert Panel for the Best Banks for Avoiding Overdraft Fees

We consulted banking and financial planning experts to inform these picks and provide their advice on how to find the right bank for you.

Here's what they had to say about choosing a bank. (Some text may be lightly edited for clarity.)

How can someone determine whether a banking institution is the right fit for them?

Mykail James, MBA, certified financial education instructor,  BoujieBudgets.com :

"The No. 1 thing about a checking account is you should know what provider the debit card is coming from. And a lot of people don't think about that, because there are places that don't accept MasterCard or don't accept an Amex."

Sophia Acevedo, certified educator in personal finance, banking editor, Business Insider :

" Think about which bank accounts you'd like to open and which features you're looking for. Let's say you sometimes overdraw from your bank account. When you're deciding on a bank, you'll want to see if the bank offers a checking account that doesn't charge overdraft fees. You could also see if the bank has an overdraft protection program where you can manageably waive fees by meeting certain requirements." 

How can someone decide between a bank and a credit union?

Tania Brown, certified financial planner and vice president of coaching strategy at OfColor :

"For most people, it falls into five categories: location, interest rates, services, technology, and relationships. Next, prioritize what's important and you will have your answer. For instance:

• If multiple regional and national locations are important: Banks typically have more locations than credit unions.
• If the most important thing to you is a high interest rate: Credit unions, on average, offer better interest rates than banks.
• If a lot of services (commercial banking, business banking, investment services, etc.) are valuable to you: Larger banks offers more services than most credit unions. 
• If feeling like a person, not a number, matters to you: Credit unions are known for great personalized customer service.
• If you are a tech junkie: Larger banks typically offer more tech bells and whistles for online users than credit unions."

What makes a checking account good or not good?

Roger Ma, certified financial planner with  lifelaidout®  and author of  "Work Your Money, Not Your Life" :

"I would look at the ATM branch locations and then minimum balance amounts to not incur a monthly fee … I think there's other stuff that could make life easier, whether it's free checks, online bill pay, are they in the Zelle network?"

Sophia Acevedo, certified educator in personal finance, editor, Business Insider :

"I would for a checking account that either doesn't have any monthly services fees or offers multiple ways to waive the fee. I would also look at customer support availability and mobile app ratings."

Methodology: How Did We Choose the Best Banks for Avoiding Overdraft Fees?

Business Insider's mission is to help smart people make the best decisions with their money. We understand that "best" is often subjective, so in addition to highlighting the clear benefits of a financial product or account, we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don't have to.

For our guide, we researched over two dozen financial institutions and financial service providers to find options that minimized overdraft fees.

Since numerous checking accounts at online banks didn't charge overdraft fees, we narrowed down our picks for this category by looking at minimum opening requirements and overdraft protection programs. For all of our top picks, we also considered the overall banking experience at each bank by using our rating methodology for checking accounts, which assesses criteria like customer support availability, mobile app ratings, and ethics.

See our full ratings methodology for checking, business checking, savings, and money market accounts »

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Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards .

Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.

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