Rising ATM Fees: What You Need to Know
Introduction:
Accessing money from your checking or savings account has become more expensive for many Americans due to the increasing fees associated with using out-of-network ATMs. According to a recent survey conducted by Bankrate, the national average out-of-network fee has reached a record high of $4.77 in 2024, marking a 4 cent increase from the previous year. This fee includes an average surcharge of $3.19 levied by ATM-operating banks, along with an average charge of $1.58 from one’s own bank for using an out-of-network ATM. These rising fees have sparked concerns among consumers who are looking for ways to avoid paying extra charges.
Regional Disparities in ATM Fees:
The survey conducted by Bankrate analyzed 25 metro areas across the country and found significant variations in ATM fees depending on location. Atlanta emerged as the city with the highest average combined fees in 2023 and 2022, amounting to $5.33 and $5.38, respectively. In terms of average combined ATM fees in 2024, San Diego and Phoenix followed closely behind with costs of $5.22. On the other hand, Boston, Seattle, and Philadelphia had some of the lowest out-of-network ATM fees, with amounts under $4.50. These regional disparities highlight the importance of considering location when it comes to accessing cash from ATMs.
Insights into Overdraft Fees:
In addition to the rising ATM fees, Bankrate’s survey also shed light on other bank fees, particularly overdraft fees. The national average overdraft fee has increased to $27.08 in 2024, up from $26.61 in 2023. This marks a reversal of the declining trend observed in the previous two years, after reaching a peak of $33.58 in 2021. The survey revealed that 94 percent of accounts surveyed still charge overdraft fees, with some reaching as high as $38. While there are fee increases, Bankrate also found that non-sufficient funds (NSF) fees have decreased for the third consecutive year. The average NSF fee in 2024 is $17.72, the lowest in Bankrate’s survey history, down 11 percent from the previous year’s $19.94. Additionally, the percentage of accounts that do not charge any NSF fee has increased from 30 percent to 36 percent.
Tips to Avoid ATM Fees:
To avoid paying extra fees at ATMs, Bankrate recommends a few strategies. First, it is advisable to confine cash withdrawals to in-network ATMs, as they typically do not incur additional charges. Check if your bank participates in a nationwide ATM network that allows you to withdraw cash free of charge. Another option is to opt for cash back when using a debit card for purchases, eliminating the need for ATM withdrawals altogether. By being mindful of these strategies, consumers can minimize the impact of rising ATM fees on their finances.
Conclusion:
As ATM fees continue to rise across the country, Americans are faced with the challenge of accessing their money without incurring excessive charges. Bankrate’s survey highlights the regional disparities in these fees, with some cities experiencing higher average combined fees than others. Furthermore, the study also brings attention to the increases in overdraft fees, while noting the decline in NSF fees. By following Bankrate’s recommendations and adopting alternative methods of accessing cash, consumers can navigate the landscape of rising ATM fees more effectively.
