In today’s cashless world, having instant access to your money is a convenience we often take for granted. But there’s nothing more frustrating than finding out that accessing your own money came with a hidden cost – a hefty ATM fee.
Whether you’re withdrawing from an out-of-network machine or traveling abroad, these fees can quickly add up, cutting into your hard-earned savings. But don’t worry! With a little planning and a few savvy strategies, you can dodge those pesky charges and keep more of your money where it belongs – in your pocket. In this article, we’ll explore some practical tips and tricks to help you avoid ATM fees and make the most out of every withdrawal.
What are ATM fees?
ATM fees are charges that banks or ATM operators impose when you use an Automated Teller Machine to withdraw cash, check your balance, or complete other transactions.
These fees are typically applied when you use an ATM outside your bank’s network, and they can vary depending on the location and the bank’s policies. Here are the three types of ATM fees:
- Out-of-Bank Fee– This is charged by your own bank when you use an ATM that isn’t part of their network. It’s like a penalty for stepping outside their circle of machines.
- ATM Surcharge Fee– This is what the ATM owner charges you for the convenience of using their machine. Think of it as a service fee for letting you use their ATM, even though you’re not their customer.
- International Transaction Fee– If you’re traveling abroad and need cash, your bank might hit you with this fee for using an ATM outside the country. It’s a little extra charge for accessing your money in a different currency.
How to Avoid ATM Fees
Avoiding ATM fees can be a game-changer when it comes to managing your finances, especially if you frequently need to access cash or travel abroad. Here are some practical strategies:
1. Use Your Bank’s ATMs
This is the simplest way to avoid fees. Stick to ATMs that are within your bank’s network, as using out-of-network machines can incur extra charges. Many banks have ATM locators on their websites or apps to help you find the nearest fee-free machine.
2. Opt for Banks that Reimburse ATM Fees:
Some banks, like Charles Schwab or Fidelity, offer unlimited ATM fee reimbursements, which can be a great perk if you frequently find yourself needing cash from out-of-network ATMs. It’s worth looking for an account with this feature, especially if you travel often.
3. Avoid Dynamic Currency Conversion (DCC)
When withdrawing money abroad, always opt to be charged in the local currency rather than your home currency. Choosing to be charged in your home currency can lead to higher fees and unfavorable exchange rates
4. Reduce ATM Usage
Make fewer, larger withdrawals to minimize the number of fees you pay. This is particularly useful if your bank charges a flat fee per transaction. Also, consider using your debit card at a store to get cash back, which can eliminate the need for an ATM altogether.
5. Choose a Travel-Friendly Bank Account
Online banks like Axos and credit unions such as Connexus offer accounts specifically designed to minimize ATM fees, both domestically and internationally. They often include benefits like unlimited ATM fee reimbursements and no monthly maintenance fees.
How much do ATM fees charge?
Here’s a breakdown of ATM fees for some major U.S. banks in 2024 based on recent data. This table summarizes the out-of-network ATM withdrawal fees, as well as any additional charges like foreign transaction fees. Keep in mind that these fees can vary based on your account type and location:
| Bank | Out-of-Network Withdrawal Fee | Foreign Exchange Fee | Foreign Withdrawal Fee |
| Bank of America | $2.50 | 3% | $5 |
| Wells Fargo | $2.50 (balance inquiry fee: $2) | 3% | $5 |
| Chase | $2.50 | 3% | $5 (balance inquiry fee: $2.50) |
| Citibank | $2.50 | 3% | $5 |
| U.S. Bank | $2.50 | 2-3% | $2.50 |
| PNC Bank | $3 | 3% | $5 |
| Capital One | None | 3% | $2 |
| TD Bank | $3 | None | $3 |
| Trust Bank | $3 | 3% | $5 |
| Fifth Third Bank | $2.75 | 3.2% | $5 |
These fees generally apply when using an ATM outside the bank’s network. Some banks offer ways to waive or reimburse these fees, especially for premium accounts. For instance, Capital One offers fee-free access to a large network of ATMs, while some banks like Axos provide unlimited domestic ATM fee reimbursements.
How does ATM fee Reimbursement work
ATM fee reimbursement is a feature where banks refund the fees you’re charged for using out-of-network ATMs. Typically, the bank tracks these fees throughout your statement cycle and credits them back to your account at the end of the month. Some banks offer unlimited reimbursements, while others have a cap on the amount you can get back each month, like $10 or $20.
Tips on How to Get an ATM Fee Reimbursement
Getting an ATM fee reimbursement can be a great way to avoid those annoying charges that come with using out-of-network ATMs. Here’s how you can increase your chances of getting these fees refunded:
1. Choose a Bank That Offers Reimbursements
Some banks and credit unions automatically refund ATM fees at the end of each statement cycle. Banks like Axos, Schwab, and Alliant Credit Union provide generous reimbursement policies.
For example, Schwab Bank refunds all ATM fees for its customers using their Schwab Bank Visa Platinum Debit Card, and Alliant Credit Union offers up to $20 in reimbursements each month for customers with their High-Rate Checking account. Ally Bank also offers up to $10 in ATM fee reimbursements per statement cycle.
2. Use In-Network or Partner ATMs
If your bank doesn’t automatically reimburse fees, try using in-network or partner ATMs to avoid fees in the first place. Many banks, such as Ally, have partnerships with ATM networks like Allpoint, giving customers fee-free access to thousands of locations worldwide.
3. Leverage Your Customer Relationship
If you’re hit with a fee, don’t hesitate to ask for a refund, especially if you’re a long-time customer or have multiple accounts with the bank. You can use factors like being financially affected by circumstances (such as COVID-19) or being a loyal customer as leverage when negotiating with your bank’s customer service. Politeness and persistence are key—if one representative denies your request, try speaking to another or escalating to a manager.
4. Consider a Cash Management Account
Some institutions offer cash management accounts that combine checking, savings, and investing, often including unlimited or reduced ATM fee waivers as part of the account perks. This could be a good option if you frequently need to use ATMs outside of your network.
5. Use Cash Back Options at Retailers
Instead of using an ATM, get cash back when making a purchase with your debit card at a grocery store or gas station. This method doesn’t incur ATM fees and can save you a lot over time.
Conclusion
To wrap things up, avoiding ATM fees is all about being smart with your cash withdrawals. Stick to using your bank’s ATMs whenever possible, and consider accounts that offer fee reimbursements, especially if you travel a lot or frequently find yourself needing cash on the go.
Planning your withdrawals to minimize fees, using partner ATMs, and even getting cash back at stores can save you a surprising amount over time. With a little foresight and the right banking choices, you can easily steer clear of those annoying fees and keep more of your money for what really matters.
