Business

ATM fees hit a record high for 4th straight year

Customer uses an ATM at a Chase branch in the Queens borough of New York. (AP Photo/Mary Altaffer, File)

(NewsNation) — If you need money from an ATM, and it’s not a machine run by your bank, you’ll be paying more than ever before, according to an annual survey from Bankrate.

The national average combined out-of-network ATM fee is now $4.77, up from $4.72 last year. The combined fee is the sum of the charge by an out-of-network bank, $3.19, plus the average charge of $1.58 levied by your own bank for using an out-of-network ATM.

“Confine cash withdrawals to in-network ATMs or get cash back when using a debit card,” advises Greg McBride, Bankrate’s chief financial analyst. “See if your bank participates in a nationwide ATM network that can be used free of charge.”

Of the top 25 metro areas in the U.S., Atlanta has the highest average combined ATM fee of $5.33. The lowest is Boston at $4.16.

Separately, Bankrate says the national average overdraft fee has climbed to $27.08 this year, up from $26.61 in 2023. This increase comes after two straight years of declines, after the average overdraft fee had peaked at $33.58 in 2021.

On the other hand, NSF (insufficient funds) fees are down for the third straight year. The national average is now $17.72, down from last year’s $19.94 and the lowest in the 26 years that Bankrate has been tracking fees.

McBride said it’s important to check your balance before making a notable purchase or withdrawal to avoid overdraft or NSF fees.

Also, he says, “Do not opt-in to overdraft protection on small-dollar ATM and debit card transactions and consider declining overdraft protection altogether. Link your checking account and savings account so any shortfall is covered by your own funds, not the bank`s.”