Bank / Credit Union

Customers paying less ATM fees

November 2, 2020

According to a recent survey conducted by Bankrate, ATM owners have decreased the charges that non-customers have to pay, but by only by a penny. The figures went from $3.08 per non-customer transactions from last year's record high of $3.09 according to a report in the Herald Tribune. The small decrease did break a streak of 15 consecutive years of increases in the average ATM surcharge. The fee had risen in 20 of the past 22 years, with 2004 and 2020 the exceptions.

In addition, the average fee that banks charge their own customers for out-of-network ATM withdrawals was down for the third year in a row to $1.56, the lowest since 2013. Bankrate credits the free out-of-network ATM withdrawal policies that are being offered. The latest average fee is down 4% from $1.63 last year and is 9% below the 2017 record of $1.72.

Those fees, and the total cost of an out-of-network ATM withdrawal, averages $4.64, down less than 2% from last year's record high of $4.72, and the lowest since 2016.

"To avoid fees, consumers should limit ATM withdrawals to within their own bank's network," Greg McBride, chief financial analyst at Bankrate said in the report. "While large banks have large ATM networks, many smaller banks and credit unions belong to nationwide fee-free alliances that may have significantly more ATMs available than even the ATM networks of big banks. One other option is getting cash-back at the point of sale when using a debit card. Banks don't charge and very few merchants do either, amounting to a free withdrawal."