Navigating Low ATM Fees for Better Banking

You can avoid paying high ATM fees by using the right bank and ATM network. According to a recent survey, 75% of banks charge a fee for using an out-of-network ATM.

To minimize fees, consider opening a checking account with a bank that offers free ATM access through a large network like Allpoint, which has over 55,000 ATMs across the US. Many credit unions and community banks also offer fee-free ATM access.

Some banks charge a flat fee of $2 to $3 per withdrawal, while others charge a percentage of the withdrawal amount. For example, Bank of America charges a $2.50 fee for using an out-of-network ATM, while Wells Fargo charges 3% of the withdrawal amount.

An ATM, or Automated Teller Machine, is a device that allows you to withdraw cash from your bank account.

ATMs are typically found at banks, credit unions, and other financial institutions, as well as in public places like shopping malls and convenience stores.

Some ATMs assess transaction fees for withdrawals, but a surcharge-free ATM does not.

You can usually find a list of surcharge-free ATMs through your bank or credit union, or by using an ATM locator service.

Using a surcharge-free ATM can save you money on fees, especially if you frequently withdraw cash from ATMs.

ATM fees can add up quickly, but there are ways to minimize them. You can expect to pay $4.59 on average for using out-of-network machines, according to Bankrate.

Some banks charge up to a few dollars for using an out-of-network ATM, while others may charge an additional fee. For example, Bank of America charges $2.50, and the provider charges $3, resulting in a total fee of $5.50.

Regional banks tend to charge lower ATM fees than national banks, but not all regional institutions refund fees charged by ATM providers. Here are some examples of regional banks and their out-of-network ATM fees:

To avoid bank ATM fees, consider choosing a bank with no ATM fees, or one that refunds ATM fees. You can also choose a bank with easily accessible ATMs, or withdraw more money at once to reduce the number of transactions.

Finding and using ATMs can be a breeze if you know where to look. There are more than 55,000 surcharge-free ATMs throughout the U.S., thanks to networks like Allpoint.

To find a free ATM, use your bank's website or mobile app to locate their ATMs using the ATM locator feature. You can also call customer service for assistance.

If you can't find a branch nearby, use your bank or credit union's ATM at their physical location to withdraw funds without incurring fees. Many banks and credit unions have these ATMs available for their customers.

Using your debit card for straight purchases is another great way to avoid ATM fees. You can also load your debit card account with enough money to cover purchases and bypass visiting an ATM for cash altogether.

Some ATMs may have a notice on the screen stating that you'll incur a fee or surcharge, even if you're using a machine within your network. If this happens, contact your bank to report the error and have the fee reimbursed.

Here are the types of ATM fees you may incur:

International ATM fees can be steep, with some banks charging a higher fee and a 3% foreign transaction fee, plus any fee the ATM provider may charge.

Avoiding ATM fees is easier than you think. You can start by using your bank's ATMs, which are often fee-free. According to Example 5, many banks offer fee-free ATM access at their own branches or within their network, so it's worth checking with your bank to find out where these ATMs are located.

Some banks don't charge ATM fees at all. Online financial institutions, like Ally Bank (Example 8), often have no ATM fees for their customers. And even if you do use an out-of-network ATM, some banks will reimburse you for the fee. For example, Bank of America will reimburse one out-of-network ATM fee per month for Platinum customers (Example 8).

You can also avoid ATM fees by planning ahead and taking out larger sums of cash. According to Example 5, making fewer withdrawals can help you reduce the number of times you incur ATM fees.

Another option is to use mobile banking apps to locate nearby in-network ATMs. This can make it easier to access fee-free ATMs and avoid those pesky fees.

Here are some banks that offer fee-free ATM access or reimburse ATM fees:

By using these strategies, you can avoid ATM fees and save money on your banking expenses.

The average consumer pays $4.59 to use out-of-network ATMs, with the bank or credit union charging $1.51 and the ATM owner charging $3.08.

To avoid these fees, consider choosing a bank with no ATM fees or one that refunds ATM fees. Some banks, like Chase Premier Plus Checking, refund account holders four times per statement period.

Another option is to upgrade to a high-yield checking account, which may waive non-network ATM fees or reimburse operator fees. However, these accounts often come with monthly service charges.

Here are some banks that offer fee-free or low-fee checking accounts:

Banking can be a complex and confusing world, especially when it comes to fees. One of the most frustrating fees is the ATM fee, which can add up quickly if you're not careful. According to Bankrate's 2023 checking account and ATM fee study, the average out-of-network ATM fee increased by 1.5 percent over the past year to an average of $4.73 per transaction.

To avoid these fees, consider choosing a bank with no ATM fees. Not all banks charge out-of-network ATM fees, so it's worth exploring options like online financial institutions that often have no fees and reimbursements for out-of-network fees.

Some banks offer free checking accounts with no non-network ATM fees, such as Ally Bank, Aspiration, and Capital One 360. These accounts also offer rebates on ATM fees paid to other companies, making them a great option for those who frequently use ATMs.

Upgrading to a high-yield checking account can also help reduce domestic ATM fees. Certain banks, like Chase and Citibank, offer high-yield accounts that waive non-network ATM fees or reimburse ATM fees charged by other banks. However, these accounts often come with monthly service charges that can't be avoided unless you meet a high minimum account balance.

Here are some examples of banks that offer high-yield checking accounts with ATM fee benefits:

By choosing the right bank and account, you can avoid or minimize ATM fees and save money.

Non-Bank refers to ATMs that are not part of your bank's network.

Using ATMs outside of your bank's network can result in two separate fees: the ATM Fee charged by your bank and the ATM Owner Surcharge charged by the company whose ATM you're using.

These fees are collectively known as Non-Bank ATM Fees.

To avoid Non-Bank ATM Fees, it's essential to understand your bank's ATM network and look for checking accounts that offer a Non-Bank ATM Fee Rebate.

A Non-Bank ATM Fee Rebate is offered by checking accounts that meet two conditions: your bank doesn't charge an ATM fee, and you receive at least three rebates for fees charged by other banks or have at least $8 refunded back into your account per month.

So, you're wondering what "foreign" means in the context of banking and fees? In simple terms, foreign refers to anything outside the U.S.

Many banks charge a special fee for ATM transactions made outside the U.S. This fee covers the costs of currency conversion.

Banks consider international use of an ATM or debit card to be a higher risk for fraud, which is why they charge these fees.

If you're looking for no-fee options, consider using ATMs within your bank or credit union's network. These ATMs are surcharge-free, and you can find them using your bank's ATM locator tool or by calling your bank for assistance.

Some popular no-fee ATM networks include STAR Network, with over 2 million locations, and CO-OP ATM, which has over 30,000 ATM networks for credit union members. PULSE is another option, with over 380,000 ATMs in the US.

If you're an Ally Bank customer, you can use Allpoint ATMs, which have over 55,000 locations in the US. Ally will even reimburse you up to $10 per month for any ATM operator fees you pay to other companies.

Another option is the SUM network, which has a bright red logo and offers surcharge-free access to ATMs in the US. Aspiration's Summit Account is also a great choice, offering no-fee access to any ATM in the world and reimbursing all ATM fees you pay to other banks or operators.

Here are some popular no-fee ATM networks:

Capital One 360 and Schwab Bank also offer no-fee checking accounts with rebates on ATM fees.

ATM fees can be a significant expense, but understanding how they work can help you avoid them. The average out-of-network ATM fee is $4.59, broken down into a $1.51 bank or credit union fee and a $3.08 ATM owner surcharge.

To avoid ATM fees, consider choosing a bank with no ATM fees or one that refunds ATM fees. Some online financial institutions don't charge ATM fees and offer reimbursements for out-of-network fees. Before opening a checking account, check the bank's ATM locator to ensure you're close to enough ATMs.

Here are some ways to minimize ATM fees:

By understanding ATM fees and taking a few simple steps, you can save money on these expenses and enjoy more flexibility with your finances.

You'll likely incur ATM fees if you use a machine outside of your bank's network. This can happen when you're traveling or just need to withdraw cash from a different location.

The bank itself may charge you up to a few dollars for using an out-of-network ATM. This fee can vary, but it's usually around $2.50.

You'll also be charged by the company servicing the out-of-network ATM. This fee can range from a few dollars to more, depending on the provider.

Let's break it down: if you're a Bank of America customer using a non-Bank of America ATM, you'd pay a total of $5.50 to withdraw money, including the $2.50 Bank of America fee and the $3 provider fee.

Using an out-of-network ATM in a foreign country adds an extra layer of fees. Some banks charge their usual out-of-network ATM fee, while others charge a higher fee. For example, you'd pay $5 to withdraw money from a foreign ATM with Bank of America instead of the usual $2.50.

Here are the types of ATM fees you might encounter:

ATM surcharges are fees charged by the owner of an ATM for allowing you to withdraw cash from their machine. These fees can range from $2 to $3.08, as seen in Example 2, where the average ATM surcharge is $3.08.

Using an ATM that's not part of your bank's network can result in both a bank fee and an ATM surcharge. For instance, if you're a Bank of America customer using a non-Bank of America ATM, you'll pay a fee of $2.50 from Bank of America and a fee of $3 from the ATM provider, totaling $5.50 (Example 4).

You can avoid ATM surcharges by using ATMs within your bank's network or by choosing a bank with no ATM fees. Some banks, like VyStar Credit Union, don't charge ATM fees at all (Example 5).

ATM owner surcharges are fees charged by the owner of an ATM for allowing you to withdraw cash from their machine. These fees are in addition to any fees your bank may charge.

Here's a breakdown of the average ATM surcharge and bank fee:

Keep in mind that some banks may offer ATM rebates, which refund ATM owner surcharges. However, these rebates may have limits or conditions (Example 9).