How Much Do ATM Machines Charge and How to Avoid Fees

ATM fees can be a sneaky expense. Some ATMs charge a flat fee, which can range from $2 to $5 per transaction, while others charge a percentage of the withdrawal amount, typically around 1-3%.

To avoid these fees, consider using in-network ATMs, which often have no or lower fees. Many banks also offer fee-free ATMs for their customers.

Some ATMs may also charge a foreign transaction fee of 1-3% for international withdrawals.

There are several types of ATMs and banks that can affect how much you'll pay in fees. National banks tend to charge higher ATM fees than regional banks, with some charging up to $5 per transaction.

Regional banks often have lower ATM fees, with some charging as little as $2. Online banks, on the other hand, typically have the most lenient ATM fees, with many not charging anything at all.

Here's a breakdown of the types of banks and their average ATM fees:

It's worth noting that some online banks may refund fees charged by out-of-network ATM providers, with some offering unlimited refunds.

National banks tend to charge fees for using out-of-network ATMs, with some exceptions. Many national banks waive ATM fees on certain checking accounts or offer reimbursement up to a monthly limit.

Bank of America charges a $2.50 out-of-network ATM fee, while BMO charges $3. Some national banks, like TD Bank and Santander Bank, offer no ATM fees or fees that range from $0 to $3.

If you're interested in a national bank but are turned off by the fee, check if they offer a zero-ATM-fee account option. You can also consider looking for a bank that will reimburse you for out-of-network ATM fees.

Here's a list of some national banks and their out-of-network ATM fees:

Keep in mind that some national banks may offer more competitive rates or rewards programs to make up for the ATM fees. It's essential to weigh your options and consider your banking needs before making a decision.

Bank fees can be a real headache, especially when you're traveling or using ATMs outside of your network. Bank ATM fees are charged when you use an ATM that's not part of your bank's network.

Most banks and credit unions have a network of ATMs that offer free access to your money. But if you go outside of the network, a fee may be imposed.

ATM operators charge a fee, known as the surcharge, to noncustomers using their ATMs. This fee can be charged by the ATM owner, who might be a different bank, a business unrelated to banking, or even an individual investor looking to earn passive income.

Some banks waive out-of-network fees, while others reimburse ATM fees charged by outside banks, usually up to a limit. Your bank's out-of-network fee can add up quickly, so it's essential to understand your bank's policies.

If you're traveling outside the U.S., be aware of international transaction fees. Bank of America charges a 3 percent transaction fee for ATM withdrawals processed outside of the U.S. Other banks charge lower international transaction fees, such as Connexus Credit Union's up to 1.5 percent transaction fee or LendingClub's under 1 percent.

People are willing to pay high surcharge fees because of the value placed on convenience. This is known as the time-value trade-off, where consumers prioritize saving time over saving money.

ATMs are a prime example of this, as they provide immediate access to cash. In fact, most people would rather pay $4.52 in fees than take the time to locate and travel to the nearest bank.

Some banks are more convenient than others when it comes to ATM fees. For instance, Ally Bank has more than 43,000 free in-network ATMs, making it a convenient option for those who want to avoid fees.

Here's a comparison of some popular banks' ATM fees:

This table highlights the varying fees charged by different banks. Some, like Ally and Axos, don't charge out-of-network fees at all, while others, like Bank of America and Citibank, charge a flat fee of $2.50.

To avoid bank charges, consider choosing a bank with no ATM fees. Not all banks charge out-of-network ATM fees, so explore options like online financial institutions that often have no fees. Some banks even reimburse out-of-network fees through their standard checking accounts.

You can also choose a bank that refunds ATM fees, which can be a lifesaver if you frequently use non-network ATMs. For example, some banks reimburse up to a certain amount every month in fees charged by an out-of-network provider.

Another strategy is to withdraw more money at once, reducing the number of ATM withdrawals you make and the associated fees. However, this may not be practical for everyone, especially if you're concerned about carrying large amounts of cash.

If you're interested in an institution but turned off by the fee, check whether there's a zero-ATM-fee account option. Some banks, like Ally Bank and Axos Bank, offer unlimited free in-network ATMs.

Here's a breakdown of some popular banks' out-of-network ATM fees:

Remember, out-of-network ATM fees can add up quickly, with the average combined fee now standing at $4.73 per transaction. This is the sum of the average fee charged by the bank ($1.58) and the average ATM surcharge from the ATM's owner ($3.15).

ATM fees can vary greatly depending on where you are. San Francisco has the lowest average ATM fee at just $3.85.

If you're traveling, it's a good idea to know the average ATM fees in the cities you'll be visiting. Cincinnati, Kansas City, Dallas, and Seattle also have relatively low average ATM fees, ranging from $3.86 to $4.21.

Here are the cities with the lowest average ATM fees:

Regional banks tend to charge lower ATM fees than national banks. Some regional institutions even refund fees charged by ATM providers, but not all do.

If you're a customer of a regional bank, it's worth checking your account's terms to see if you'll be charged for out-of-network ATM use. The fees can add up quickly.

Here's a comparison of out-of-network ATM fees at some regional banks:

Some regional banks, like Golden 1 Credit Union, charge as little as $2 for out-of-network ATM use.

Atlanta has the highest average ATM fee at $5.15, followed closely by New York at $5.03.

Miami and Milwaukee round out the top five with average ATM fees of $4.84 and $4.78, respectively.

The cities with the lowest average ATM fees are San Francisco at $3.85 and Cincinnati at $3.86.

Independent ATM operators face significant initial investments, with a single ATM machine costing around $2200. This upfront cost is a major factor in why ATM fees can be so high.

Buying and operating an ATM is not a cheap endeavor, with many operating costs involved in providing the service. These costs contribute to the high fees that consumers are charged.

The initial investment in an ATM machine can pay itself off over time, but it's a significant barrier to entry for many independent operators.

Free checking accounts can be a game-changer for those who frequently use ATMs. Ally Bank offers free nationwide ATM access through a partnership with Allpoint, a company with over 55,000 ATMs in the United States.

Ally account holders pay no non-network ATM fees and receive up to $10.00 in reimbursement each month for any ATM operator fees they pay to other companies. This means you can use any ATM you want without worrying about extra charges.

Aspiration's Summit Account is another option that offers no-fee access to any ATM in the world. It reimburses all ATM fees you pay to other banks or operators on a monthly basis, making it a cost-effective choice.

Capital One 360 Checking Account offers limited brick-and-mortar service, but you won't need to pay any monthly fee or non-network ATM fees. However, Capital One won't reimburse you for any operator fees charged by other companies when you use their ATMs.

Schwab Bank High Yield Investor Checking Account offers unlimited rebates for all ATM fees, worldwide, making it a great option for frequent travelers or those who need to access ATMs while abroad.

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ATM fees can be a major hassle, especially if you're not aware of the fees associated with your bank. Many online banks have lenient ATM fees, or even don't charge you at all.

Some online banks, like Affinity Plus Federal Credit Union, Alliant Credit Union, and Ally, don't charge out-of-network ATM fees. Others, like Axos Bank, offer refunds for certain fees, but with a monthly limit.

If you're paying too much in ATM fees, you can try using your bank's app to find free ATMs near you. This can save you a lot of money in the long run.

You can also choose to withdraw cash less frequently, but in larger amounts. This can reduce the number of ATM withdrawals you make, but be aware that carrying more cash comes with greater risk of loss.

Here's a breakdown of some online banks' out-of-network ATM fees:

Keep in mind that some banks, like Chime and Robinhood, charge a fee for out-of-network ATM withdrawals. And if you're not careful, you could end up paying a lot of money in fees.