If you’re anything like me, you hate paying extra fees just to access your own money. ATMs are possibly the worst offenders, and their fees are only rising.
ATM fees reached a new high in 2024, reaching an average of nearly $5 per transaction, according to Bankrate. That’s a shocking toll for the convenience of getting money out of your own bank account, especially if you just need a quick $20. Unfortunately, some consumers don’t have much of a choice.
“We asked ATM users about the extent of free ATMs available at their primary bank. Over 60% of respondents reported that free transactions are only available at specific, in-network ATMs,” says Paul McAdam, a Senior Director of banking and payments intelligence at J.D. Power.
The lack of accessible in-network ATMs means many Americans end up using third-party machines that charge fees. Banks are acutely aware of this revenue stream and, according to Bankrate, have been consistently raising ATM fees over the past five years.
Thankfully, with a little foresight and planning you can easily avoid paying ATM fees and keep your money where it belongs, in your own pocket.
7 ways to avoid ATM fees
There are plenty of ways to avoid paying ATM fees. While it might mean putting in some extra legwork, the savings should be well worth the effort.
Stick to in-network ATMs
Sometimes the most obvious answer is the right one: You won’t pay any fees when you use an ATM that is managed by the bank that issued your debit card.
If you’re using an internet-based bank that doesn’t have physical locations, chances are that they’ve worked out a deal with an ATM network such as Moneypass or Allpoint.
“Many banks offer a ‘Find the Nearest ATM’ option inside their mobile app which allows you the opportunity to find the closest fee-free option,” recommends Jennifer White, a Senior Director of banking and payments intelligence at J.D. Power.
Open a bank account that eliminates all ATM fees
Many big banks offer premium accounts that let you use any ATM you want free of charge. The catch is that the accounts themselves may charge a monthly fee, but many waive that fee if you maintain a large enough balance in your account.
Bankrate found that 39% of banks they surveyed offer at least one account that fits this criteria, making it a fairly accessible option as long as you can meet the required qualifying activity.
Choose a bank account that refunds ATM fees
Many banks offer accounts that refund some or all of your out-of-network ATM fees each month. These accounts are more common than ones that let you use any ATM fee-free, but they may also carry various qualifying requirements. Miss the requirements one month—like a minimum balance amount—and you won’t get the refund.
Get cash when using your debit card in stores
While you won’t have this option when patronizing small businesses, White reminds us that larger retailers such as chain groceries and gas stations will allow you to receive cash back at the register if you use your debit card and enter your PIN.
In most cases, there’s no fee for this service, but you may not be able to withdraw as much as you could at an ATM.
Visit a teller at a bank branch
We are all in thrall to the machines at this point, but if you have the option to visit a bricks-and-mortar bank branch, you can always talk to someone at the teller window and make a withdrawal in person.
With rare exceptions, this is a free service—and the human touch can be a nice perk for some.
If you must pay a fee, make larger withdrawals
Out-of-network ATMs nearly always charge the same fee for a $100 withdrawal as for a $20 withdrawal. If you can’t find a free, in-network machine and you need cash—let’s say you’re a fan of the envelope budget—make one big cash withdrawal. The bigger the withdrawal, the less frequently you’ll need to pay a fee. Your wallet will thank you.
Don’t withdraw more funds than what you have available.
This should go without saying, but trying to get more cash than you have in your account has consequences. If you habitually maintain a low balance, check it first before you make an ATM withdrawal.
One of three things could happen when you overdraw your bank account: The transaction will be refused entirely, you’ll get your cash but be charged a non-sufficient funds (NSF) fee, or the bank will cover your negative balance and charge you an overdraft fee. The latter two fees will definitely be more expensive than the ATM fee.
Find a checking account with fee-free ATM access
If you travel often or frequently withdraw cash, don’t just sign up for the first account you find at your local bank. As mentioned before, there are many banks that offer accounts that either refund ATM fees or don’t charge you for using foreign ATMs (though the company that services the ATM may still assess a fee on their end).
- Alliant Credit Union
- Ally Bank
- Axos Bank
- Bank5 Connect
- Betterment
- BrioDirect
- Capital One
- CFG Bank
- Charles Schwab Bank
- Chime
- CIT Bank
- Discover
- EverBank
- LendingClub
- NBKC Bank
- SoFi
- Synchrony Bank
- TAB Bank
- Varo Bank
The final word on ATM fees
White offers some sage advice. “If you are racking up ATM fees, it may also be worth making a call or an appointment at your bank to talk about options to waive fees,” she says. “You may get some short-term relief and can have a discussion about account options that position you to avoid fees in the future.”
She also recommends using digital payment options when possible to reduce the need for cash. Debit cards allow you to still manage your budget and essentially pay with saved cash. If you are avoiding using credit cards, you can also consider mobile payment apps (e.g., Apple Pay, Google Wallet) to limit your need for cash.
