ATM Fees Reach Record High, But You Can Avoid Them

Photo (cc) by Inha Leex Hale

Do you feel as if your bank is nickel-and-diming you with ATM fees? According to a new Bankrate survey, average ATM surcharges and out-of-network ATM fees jumped to record highs this year.

On average, consumers now pay $4.35 each time they use an out-of-network ATM, which includes a $2.77 charge from the ATM’s bank and a $1.58 charge from their personal bank. Overall, that’s a 5 percent increase since 2013. Ouch. If you commonly use out-of-network ATMs, those fees can quickly add up.

“The ATM fees go up at such a rapid clip because it’s really low-hanging fruit as far as fee income is concerned,” said Greg McBride, Bankrate’s chief financial analyst.

If you’re sick of throwing your money away on ATM fees, follow these three tips to avoid them:

  • Where to bank. If it’s inconvenient to get cash from your bank’s ATMs, consider switching banks, The Huffington Post said. Convenience can help keep money in your account.
  • Bank refunds. You’re wasting several hundred dollars a year if your bank doesn’t cover your out-of-network ATM fees, David Bach, vice chairman of Edelman Financial Services, told Today. Ally Bank and Schwab are two of the banks that reimburse you for out-of-network ATM fees, according to HuffPo.
  • Cash back at checkout. Withdraw cash from your account when you purchase your groceries (or a pack of gum) with a debit card. You can usually get up to $50 or $100.

While an ATM fee of $4.35 may not sound like a lot of money, those fees add up. Plus, spending your hard-earned cash to access your own money just doesn’t add up. According to Today:

“They keep your money for free and then charge you $4 to get your money back,” said Bach. “People don’t consider how much this costs in terms of percentages.”

I use ATMs only a couple of times a year. When I need cash, I usually ask for cash back at checkout. It’s quick, easy and free.

Do you use ATMs to get cash? Share your comments below or on our Facebook page.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
12 Expenses You May Be Tempted to Claim as Tax Deductions — but Shouldn’t
12 Expenses You May Be Tempted to Claim as Tax Deductions — but Shouldn’t

Thinking of trying to deduct a few of these things on your federal tax return? That could be a costly mistake.

7 Ways Coupons Waste Your Money and Time
7 Ways Coupons Waste Your Money and Time

Here’s why I hung up my scissors and quit clipping coupons.

5 Reasons You Should Claim Social Security ASAP
5 Reasons You Should Claim Social Security ASAP

Experts often recommend postponing claiming your Social Security retirement benefits. But there are situations in which you should start taking the money sooner.

8 Products to Reduce Anxiety and Stress
8 Products to Reduce Anxiety and Stress

Current events have you feeling anxious? These Amazon products can take the edge off.

8 Ways to Snag Extra Savings at Walmart
8 Ways to Snag Extra Savings at Walmart

Are you aware of all these ways to boost your savings in Walmart stores and at Walmart.com?

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
9 Mistakes Everyone Makes When Shopping on Amazon
9 Mistakes Everyone Makes When Shopping on Amazon

Are you losing money due to any of these missteps?

Can a Divorced Widow Claim Her First Husband’s Social Security Benefits?
Can a Divorced Widow Claim Her First Husband’s Social Security Benefits?

The rules are complicated when it comes to eligibility for survivors benefits.

8 Tips for Retiring Comfortably on Social Security Alone
8 Tips for Retiring Comfortably on Social Security Alone

It’s never too early to start learning how to live well while living on less.

Am I Eligible for My Mother’s Social Security Benefit?
Am I Eligible for My Mother’s Social Security Benefit?

Can an adult daughter tap into her late mother’s benefit?

This Deal Offers 85 Channels of Live TV for $10 Per Month
This Deal Offers 85 Channels of Live TV for $10 Per Month

You can start the new year off with some cheap entertainment — while the offer lasts.

27 Things You Should Never Pay For — and How to Get Them for Free
27 Things You Should Never Pay For — and How to Get Them for Free

When you know the tricks, you can save big on all kinds of useful things that others pay for.

11 Generic Products You Should Buy at Costco
11 Generic Products You Should Buy at Costco

Not all generics are worthwhile, but these are among the best from Costco’s Kirkland Signature brand.

15 Free Streaming Services to Watch While Stuck at Home
15 Free Streaming Services to Watch While Stuck at Home

These free movie streaming sites offer thousands of movies and TV shows, including recent releases and beloved classics. If you love free movies, online sites are where you need to look for the best list of features that are just one easy click away.

This Gas Station Scam Is Victimizing More Drivers
This Gas Station Scam Is Victimizing More Drivers

For the second straight year, a growing number of Americans believe they’ve fallen prey to this scam.

10 Things I Always Buy at Trader Joe’s
10 Things I Always Buy at Trader Joe’s

From snacks to sweets to side dishes, stock your cart with these time-tested favorites on your next TJ’s run.

9 Things You’ll Never See at Costco Again
9 Things You’ll Never See at Costco Again

The warehouse store offers an enormous selection, but these products aren’t coming back.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

6 Legal Documents Retirees Need — but Don’t Have
6 Legal Documents Retirees Need — but Don’t Have

Few retirees have all of these documents that are crucial to their golden years — especially during a pandemic.

15 Amazon Purchases That We Are Loving Right Now
15 Amazon Purchases That We Are Loving Right Now

These practical products make everyday life a little easier.

4 Tax Credits That Will Be More Generous in 2021
4 Tax Credits That Will Be More Generous in 2021

If you are eligible for these tax breaks, they will slash your federal income tax bill — dollar for dollar.

19 High-Paying Jobs You Can Get With a 2-Year Degree
19 High-Paying Jobs You Can Get With a 2-Year Degree

There are easy high-paying majors available in the U.S. — and no bachelor’s degree is required. We’re here to help you find easy degrees that pay well.

The Worst Day of the Year to Buy a Used Car
The Worst Day of the Year to Buy a Used Car

If you need a new set of wheels, avoid shopping on this day.

7 Stores That Match — or Beat — Amazon Prices
7 Stores That Match — or Beat — Amazon Prices

These retailers offer some of the most consumer-friendly price-match policies anywhere.

9 Types of Trash You Can Sell for Cash
9 Types of Trash You Can Sell for Cash

If you throw any of these common items in the garbage, you are throwing away money.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.