Automated Teller Machines (ATMs) provide a convenient way to withdraw cash, check balances, and perform other banking transactions. However, using an ATM that isn’t affiliated with your bank can result in fees that quickly add up. Understanding ATM fees and knowing how to avoid them can save you money in the long run.
What Are ATM Fees?
ATM fees are charges imposed when you use an ATM that doesn’t belong to your bank or financial institution. There are typically two types of ATM fees:
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Out-of-Network ATM Fees – Charged by your bank for using an ATM outside its network.
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Surcharge Fees – Charged by the ATM owner (another bank or independent operator) for non-customers using their machine.
These fees can range from $2 to $5 per transaction, meaning you could pay up to $10 just to withdraw cash if both fees apply.
How to Avoid ATM Fees
1. Use Your Bank’s ATMs
Stick to ATMs within your bank’s network to avoid extra charges. Most banks provide ATM locators on their websites or mobile apps.
2. Choose a Bank with No ATM Fees
Some online banks and credit unions reimburse ATM fees or belong to large ATM networks (like Allpoint or MoneyPass) with free access nationwide.
3. Get Cash Back at Stores
Many grocery stores, pharmacies, and retailers offer cash-back options when you make a debit card purchase, eliminating the need for an ATM.
4. Use Mobile Banking Apps for ATM Locators
Apps like Chase, Bank of America, and Ally help you find fee-free ATMs nearby.
5. Withdraw Larger Amounts Less Frequently
Instead of making multiple small withdrawals (and incurring multiple fees), take out more cash at once to reduce transaction frequency.
6. Consider Online Banks with ATM Reimbursements
Banks like Charles Schwab and Fidelity reimburse ATM fees, making them a great option for frequent cash users.
7. Avoid ATMs in High-Fee Locations
ATMs in airports, hotels, and convenience stores often charge higher surcharges. Plan ahead and withdraw cash from lower-fee locations.
Final Thoughts
ATM fees may seem small, but they can add up over time. By choosing the right bank, planning withdrawals, and using cash-back options, you can avoid unnecessary charges and keep more money in your pocket.
