How Much are ATM Fees?

How much are ATM fees?

Key takeaways

• ATM fees have risen by 1.5% over the past year, averaging $4.73 per transaction, according to Bankrate data.
• These fees are a combination of charges from the bank and the ATM's owner.
• Strategies to avoid ATM fees include staying within a bank's ATM network, using mobile banking services, or choosing an online bank that offers a large ATM network or reimburses ATM fees.

Over time, ATMs have evolved to do much more than just dispense cash. You can deposit checks or cash, transfer funds between accounts, get account balance information and pay bills.

Transacting at an ATM could come with a couple of charges, though. The total charge will depend on where you bank and what ATM you’re using. Here’s a breakdown of those charges.

What are bank ATM fees?

Most banks and credit unions have a network of ATMs that offer free access to your money. But if you go outside of the network, a fee may be imposed, including:

• ATM operator fee. Also known as the surcharge, an operator fee is charged by the ATM owner to noncustomers using its ATMs. ATM owners could be a different bank, a business unrelated to banking or even an individual investor looking to earn passive income.
• Your bank’s out-of-network fee. If you use an ATM machine outside of your bank’s network, the ATM owner isn’t the only one that may charge you — your own bank may charge a fee.

Average bank ATM fees

The amount is the sum of two numbers: the average fee that a bank charges its customers who use an ATM outside of its network ($1.58) plus the average ATM surcharge from the ATM’s owner ($3.15).

Over the course of a year, fees for weekly ATM withdrawals from an out-of-network ATM would total about $245.

ATM fees continue to climb. In 1998, when Bankrate first began tracking ATM fees, the average combined ATM fee was $1.97.

Total ATM fees vary from city to city, ranging from $5.33 in Atlanta at the high end to $4.24 in Boston.

How to avoid ATM fees

ATM fees may be objectionable, but they are avoidable with some simple strategies.

“Going outside the network often involves paying two fees — one to the ATM owner and another to your own bank. Getting cash back when using your debit card at a supermarket or pharmacy is another option for accessing cash either for free or a much lower cost than the double whammy of out-of-network ATM fees.”

Additionally, consumers can avoid ATM fees by going into a physical bank branch to make a variety of transactions or account inquiries. Mobile banking is another way to make inquiries and certain transactions, such as depositing checks, transferring funds between accounts and paying bills, without paying an ATM fee.

Finally, consumers can shop around for an online bank with a large ATM network or one that reimburses some ATM fees.