Doing a transaction at an out-of-network ATM is costing Americans an average of $4.73, which is more than it ever has before.
That’s according to the latest Checking Account and ATM Fee Study from Bankrate.com which was compiled from surveying 245 banks and thrifts across 25 U.S. markets.
Non-Customers Paying Record Amount in ATM Fees per Transaction
That $4.73 figure represents a combination of two fees that banks hit you with: a surcharge, which is levied by the ATM owner (an average of $3.15 now), and another fee ($1.58 on average) charged by your own financial institution.
The $3.15 figure is up one penny from the previous report but constitutes the 22nd record high in the past quarter century. Meanwhile, the average $1.58 fee represents a 6-cent increase ($1.52) from the previous year.
Here are some key findings from Bankrate’s Checking Account and ATM Fee Study:
- For the fifth straight year, 100% of ATM-owning banks reported charging non-customers for using their machines.
- The average nonsufficient funds (NSF) fee dropped to $19.94, a 25% decrease from the previous year.
- The average overdraft fee has fallen to $26.61, an 11% decrease from the previous year.
- Only 45% of checking accounts are free, but free checking “remains easily attainable … [because] 87 percent of noninterest-bearing checking accounts are either free or can become free when direct deposit requirements are met.”
How Much Are You Paying for ATM Fees?
| Average fee assessed by the machine owner for using an ATM out of your network | $3.15 |
|---|---|
| Average fee assessed by your bank for using an ATM out of your network | $1.58 |
| Total | $4.73 |
At the rate above, if you withdraw money just once a week from an out-of-network ATM, you’d end up paying $245.96 in a year!
Team Clark and money expert Clark Howard want you to steer clear of bank fees by only doing business with financial institutions that avoid junk fees and offer the best free checking accounts.
3 Ways To Avoid ATM Fees
With a little forethought, you can find ways to sidestep those ATM fees and keep more of your money. Here are some ways to avoid ATM fees.
1. Join a Fee-Free Bank
Clark says one way to steer clear of ATM fees is to open accounts with banks that eat the fees for you or give you a certain number of free withdrawals.
“A couple of examples are USAA and Charles Schwab,” Clark says. “Plus, many of the credit unions that have large co-op networks offer free ATMs.”
It says on USAA’s website, “We don’t charge ATM service fees and we’ll automatically refund you up to $10 each monthly statement cycle for charges from other ATMs.”
On Schwab.com, it says about its checking account, “No foreign transaction fees, unlimited ATM fee rebates for cash withdrawals worldwide.”
2. Withdraw at Your Local Supermarket
Many supermarkets will give you hundreds of dollars at the register, fee-free, Clark says. This also helps the stores, because it cuts down the amount of cash they have to process at the end of each day.
For example, Albertsons grocery stores allow you to get up to $100 cash back when you check out, Team Clark has confirmed.
3. Download an ATM Locator App
One of the most convenient ways to avoid fees is to use an app to find fee-free ATMs.
There are several apps available in the Apple App Store and the Google Play Store that show you surcharge-free networks. Here are a few:
- Allpoint Mobile App
- MoneyPass
- Co-op ATM Network (for credit unions)
Final Thoughts
The easiest way to avoid ATM fees is to stay within your bank’s network, but that isn’t always possible. Most banks’ websites have lists of their branches and ATM locations. You can also Google that information.
If you’ve got some time to plan, look into credit unions and smaller banks to reimburse your ATM fees.
Want to learn more about getting access to your money for free? Read our guide on how to find free ATMs near you.
