Recently, on the way to take my son for a haircut, I suddenly realized I was out of cash—and the adorable 80-year-old barber who cuts our kids’ hair doesn’t accept credit cards. We were already running late, so I stopped at the ATM in the nearby pharmacy rather than head across town to our bank’s ATM.
That momentary convenience cost me nearly $7. The out-of-network ATM charged me $3.50 and my bank took another three bucks.
I’m hardly alone in paying for the privilege of accessing my own money. According to a 2023 Bankrate survey of checking fees, 27% of Americans with a checking account pay fees on a monthly basis.
But just because banking fees can eat up your money doesn’t mean you have to accept it. Here’s how you can lower your banking costs.
ATM Fees
While the nearly $7 I spent on the convenience of a nearby ATM is higher than usual, Bankrate has found that, as of 2023, the average cost of using an out-of-network ATM is an eye-watering $4.73. This cost is actually two fees: a $3.15 surcharge levied by the ATM owner and another $1.58 charged by your bank.
ATM fees are unlikely to go away, even with the declining demand for ATMs as our economy becomes increasingly cashless. This just means that it’s more expensive for banks to operate and maintain them. And since ATM use is optional and higher fees in this domain are less likely to alienate customers, banks have no problem passing the ATM maintenance costs onto the consumer.
How to Cut This Cost
Start by asking your bank to waive an occasional out-of-network fee. While there is nothing you can do about the ATM owner’s surcharge on a withdrawal, your bank may be willing to waive its portion of the fee . . . if you ask politely.
