How to Avoid ATM Fees: 6 Proven Strategies
Learn how to avoid ATM fees with effective strategies for managing your cash and choosing the right withdrawal methods.
ATM fees are a common charge when accessing cash. Consumers face two distinct fees: one from the ATM owner and another from their own bank. The ATM owner charges a surcharge, while the consumer’s bank may levy an additional fee for out-of-network transactions. These charges can quickly accumulate, with the average combined fee for an out-of-network withdrawal reaching approximately $4.77, though it can exceed $5 in some cities. Avoiding these fees can help consumers retain more of their money.
Leveraging Your Bank’s Network
The most direct way to avoid ATM fees is using your bank’s own network ATMs. Banks and credit unions do not charge for withdrawals at their branded machines. These “in-network” ATMs are directly operated by or have a fee-free agreement with your financial institution.
Locating these fee-free ATMs is generally straightforward. Most banks provide tools like mobile apps, online branch locators, or ATM finders on their websites. These resources allow you to search for nearby ATMs within their network, often displaying a map with their locations. Using these designated machines ensures that you avoid both the ATM owner’s surcharge and your bank’s out-of-network fee.
Accessing Fee-Free ATM Networks
Beyond your own bank’s ATMs, several shared networks offer fee-free access to cash. These networks include thousands of ATMs nationwide that waive surcharges for members of specific financial institutions. Identify these ATMs by looking for logos like Allpoint, MoneyPass, or CO-OP ATM.
Allpoint is one of the largest surcharge-free ATM networks, with over 55,000 ATMs in retail locations like pharmacies, convenience stores, and supermarkets. MoneyPass is another significant network, offering tens of thousands of ATMs nationwide. Credit unions often participate in the CO-OP ATM network, which allows members of participating credit unions to use ATMs at other credit unions and select retail locations without incurring a fee. Many of these networks also offer online locators or mobile apps to help users find the nearest fee-free ATM.
Utilizing Point of Sale Transactions
Obtain cash without ATM fees using the “cash back” option at retail locations. Many grocery stores, pharmacies, and other merchants offer this service when you purchase with your debit card. Instead of an ATM, request cash in addition to your purchase total, disbursed by the cashier.
This method involves no additional fees, processed as part of your debit card transaction. While convenient, limits on cash received vary by merchant, often $20 to $100. It is advisable to confirm the availability and limits of cash back with the merchant before completing your purchase.
Strategic Cash Management
Strategic cash management reduces reliance on frequent ATM withdrawals and exposure to fees. Instead of small, sporadic withdrawals, plan to withdraw larger sums less often. This minimizes transactions that could incur fees. Withdrawing enough cash for a week or more is more cost-effective than multiple smaller withdrawals.
Carrying emergency cash provides a buffer against unexpected situations where cash is needed and a fee-free ATM is unavailable. Furthermore, prioritizing the use of credit or debit cards for everyday purchases whenever possible reduces the overall need for physical cash. Many retailers accept card payments, making it easier to manage expenses without frequent ATM visits.
Exploring Alternative Account Features
Some bank accounts are designed with features that mitigate or eliminate ATM fees. One feature is ATM fee reimbursement, where the bank refunds fees charged by out-of-network ATMs, completely or up to a monthly limit. This is valuable for individuals who frequently travel or cannot always access their bank’s ATMs.
High-yield checking accounts or online-only banks often provide these fee reimbursement benefits as part of their account offerings. Online banks, in particular, may have broader fee-free ATM networks or comprehensive reimbursement policies due to their lower overhead costs. When considering such an account, it is important to review the terms and conditions carefully to understand any requirements for fee reimbursement, such as maintaining a minimum balance or meeting direct deposit criteria.