Key takeaways
- ATM fees have risen slightly over the past year, averaging $4.77 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.
Despite the rise in digital banking and contactless payments, ATMs remain a convenient way to access cash and manage everyday banking tasks. But using an ATM isn’t always free. ATM fees can quickly add up, especially if you are withdrawing cash from a machine outside of your bank’s or credit union’s network.
Depending on the ATM and your bank, you could face multiple charges, including fees from your bank and ATM surcharges from the machine’s owner. Here’s what you need to know about ATM fees and how to avoid them.
What are bank ATM fees?
Many banks and credit unions have a network of ATMs that allow you to access your money without extra charges. But if you use an ATM outside of that network, you may face additional fees, including:
ATM operator fee. Also known as ATM surcharges, operator fees are charged by the ATM owner when noncustomers use its machines. ATM owners can include banks, businesses unrelated to banking or even individual investors 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 impose an ATM fee, adding to the cost of withdrawing cash. ATM fees are often considered junk fees, a category of extra charges that banks and other financial institutions impose on consumers. Some banks waive out-of-network fees, while others reimburse ATM fees charged by outside banks, usually up to a certain limit.
International transaction fee. If you withdraw cash from an ATM while traveling outside the U.S., you may face additional charges. For example, Bank of America charges a 3 percent transaction fee for ATM withdrawals processed internationally. Other financial institutions charge lower international transaction fees. Connexus Credit Union charges up to a 1.5 percent transaction fee, while LendingClub customers pay under 1 percent.
How much do ATMs charge?
Bankrate reviewed account disclosures for several popular financial institutions to provide a sample of the variability of ATM fees. Here’s what we found:
| Financial institution | Number of free in-network ATMs | Out-of-network fee | International transaction fee | ATM fee reimbursements |
|---|---|---|---|---|
| Ally Bank | More than 75,000 | None | Up to 1% | Up to $10 per month |
| Axos Bank | About 91,000 | None | Up to 1% | Unlimited domestic reimbursements for Rewards Checking, Cashback Checking, and Essential Checking; up to $8 reimbursed for Golden Checking |
| Bank of America | About 15,000 | $2.50 | $5 plus 3% | One out-of-network ATM fee reimbursed for Platinum customers per month; unlimited for higher tiers |
| Capital One | More than 70,000 | $2 or more | $2 plus 3% for non-360 products | None |
| Citibank | Over 65,000 | $2.50 | 3% | None |
| Connexus Credit Union | Over 67,000 | None | Up to 1.5% | Up to $25 per month for the Connexus Xtraordinary Checking account |
| LendingClub Bank | Over 37,000 | None | 0.9% | Unlimited reimbursements for the Rewards Checking account |
| U.S. Bank | Over 40,000 | $2.50 | 3% | None |
| Wells Fargo | Over 10,000 | $3 | $5 | Prime Checking customers get one domestic and one international ATM fee reimbursement per month; unlimited reimbursements for Premier Checking customers |
Average bank ATM fees
Out-of-network ATM fees increased by only 4 cents over the past year to an average of $4.77 per transaction, according to Bankrate’s 2024 Checking Account and ATM Fee Study. 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 ($3.19).
Over the course of a year, fees for weekly ATM withdrawals from an out-of-network ATM would total about $248.
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 $4.16 in Boston.
How to avoid ATM fees
ATM fees can be frustrating, but there are simple ways to avoid ATM fees and keep more of your money.
Use your bank’s ATMs. “Like with health insurance, when it comes to ATM fees, it pays to stay in network,” says Greg McBride, CFA, chief financial analyst for Bankrate. “Going outside the network often involves paying two fees — one to the ATM owner and another to your own bank.
Take advantage of cash back-earning opportunities, “Getting cash back when using your debit card at a supermarket or pharmacy is another option for accessing cash either for free or at a much lower cost than the double whammy of out-of-network ATM fees,” says McBride.”
Visit a branch when possible. Consumers can avoid ATM fees by going into a physical bank branch to make a variety of transactions or account inquiries.
Use mobile banking for transactions. 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.
Find a bank that covers ATM fees. Consumers can shop around for an online-only bank with a large ATM network or one that reimburses some ATM fees.
Bottom line
Even as cashless payment options become more popular, there are still times when paying with cash is necessary or preferred. Knowing which ATMs can be used without incurring a fee can help you avoid getting charged for taking out cash. It also pays to take advantage of cash-back options when checking out at retailers.
