Your ATM Withdrawal May Cost You A Lot Of Money
According to information from Bankrate, the average out-of-network ATM runs $4.57, which means you’re paying nine percent in fees for taking out $50 from that ATM.
Bankrate’s Chief Financial Analyst Greg McBride said the occasional ATM withdrawal isn’t going to kill most people’s budgets, but when they do it on a habitual basis, it could lead to the poor house.
While it would seem like good news that less people are not using ATMs, it’s what leading to the rise in cost to using the machines to get the cash people need.
McBride said the cost of upgrading and maintaining the machines is spread out over the fewer transactions that are carried out. There are two kinds of ATM fees – the ATM owner’s surcharge and the customer’s bank fee for using an out-of-network ATM. ATM charges have increased from $2.88 to $2.90, and bank fees rise to $1.67.
Many customers are not happy with being hit with fees for using their own money; sometimes it’s not avoidable. When people use their debit cards, it gives them the option to attain cash back, and many banks have apps with a map that will show them the closest in-network ATM. Several banks include certain accounts that won’t charge customers to use another bank’s machine.
McBride said there is a plethora amount of competition in the banking sector, which means if customers don’t like the policies their banks have, they can choose from many other banks and credit unions.
Banks will charge ATM fees based on the region – some locations have higher ATM fees than others such as:
- Atlanta - $5.05
- Denver - $4.88
- Miami - $4.94