How To Avoid ATM Fees

ATM fees can be a budget killer. If you frequently use these machines to get cash, you can end up spending hundreds of dollars per year on fees. Sure, convenience has a price, but should you really have to spend so much just to access your own money? If you can deal with a little less convenience, then it is relatively easy to avoid ATM fees.

Of course, the easiest option is simply to withdraw your cash directly from the bank when you deposit a check in-person. Doing this type of face-to-face transaction with a bank teller does not cost anything, but it lacks the convenience of a simple card swipe and pin-entry that can take place at any ATM machine. Fortunately, many large banks offer free ATM usage at their machines, which are usually located at bank branches (and maybe at a few other places, such as grocery stores or gas stations). This is a bit more convenient that face-to-face transactions because there is no waiting in line for a teller and filling out a withdrawal slip. However, you still usually have to travel to the bank location to get your money. Of course, if you can find a large bank that has a chain near your house, or near your place of work, it is hardly an inconvenience. It is imperative to make sure that your bank does not charge for in-network withdraws from ATMs. Most good banks don’t. An even better option is to find a bank that places ATMs in other areas, such as convenience stores or grocery stores. This will increase the number of places that you can go to get fee-free withdrawals.

Online banks have started a practice of reimbursing users who are charged fees for using out-of-network ATMs. Ally Bank and Charles Schwab Bank offer checking account services that allow users to get reimbursed if they are charged for using an out of network ATM. While there is a limit to how much you can get back, this is a useful feature. The limits mean that you can’t simply use any cash machine whenever you want, but you don’t have to worry if you occasionally use a machine that is out of network (once in  a while – but definitely not more than a couple times per month). It is still necessary to make sure that there is an in-network ATM that you can easily reach to make regular withdrawals.

Premium checking account services are generally more likely to have a more generous policy when it comes to ATM fees. Online brokerage Etrade has several online checking account options that allow for unlimited fee rebates. However, to avoid fees, customers must keep at least $5,000 in their account at all times.

Unfortunately, some banks are doing away with fee reimbursement. TD Bank recently announced that it would be doing away with its policy of reimbursing customers when they are charged out-of-network fees. While Ally and Schwab have yet to make a similar announcement, it shows that policies can change, so people have to keep this in mind and make sure that the bank that they choose has other positives besides a favorable fee reimbursement policy. The reimbursement policy could disappear quickly.

Increased ATM fees and less generous fee refund policies are just two examples of how checking accounts have become less customer-friendly. This has to do with new banking regulations and also with banks beginning to pay more attention to their bottom line at the expense of customer service. While it is less convenient to withdraw from an ATM without incurring a fee, sticking to in-network ATMs and making one larger withdrawal rather than several smaller withdrawals can help you avoid paying too many unwanted ATM fees.