What Banks Don’t Charge ATM Fees & How to Avoid Them

ATM fees can be a common frustration for individuals accessing cash. These charges typically arise in two forms: a fee levied by the ATM owner (a surcharge) and a fee imposed by your bank for using an out-of-network machine. Understanding and avoiding these fees is a key financial objective, as small charges accumulate over time. This article explores banking options and personal strategies to minimize or eliminate these costs.

Banks Offering No ATM Fees

Many financial institutions offer account features to avoid ATM fees. Online-only banks, for instance, often have lower overhead, allowing them to pass savings to customers through fewer fees, including ATM charges. Some banks even reimburse ATM fees charged by other banks, providing flexibility for cash withdrawals from almost any ATM. Charles Schwab Bank and LendingClub are examples known for their generous or unlimited ATM fee reimbursements.

Credit unions often provide fee-free ATM access through large shared networks. The CO-OP ATM Network, for example, offers members access to over 30,000 surcharge-free ATMs nationwide, including locations in major retailers like 7-Eleven, Costco, and Walgreens. This network allows credit union members to perform transactions as if at their own branch, without incurring fees. Some larger traditional banks also maintain expansive proprietary ATM networks or partner with networks like Allpoint or MoneyPass, enabling customers to withdraw cash without fees at tens of thousands of locations. Capital One, for instance, provides access to over 70,000 fee-free ATMs through its network and partners.

Certain checking accounts offer specific ATM fee rebates or reimbursements. These accounts may refund out-of-network ATM fees up to a specified monthly limit, such as $10 to $20, or offer unlimited reimbursements if certain balance requirements are met. For instance, Alliant Credit Union reimburses up to $20 per month in out-of-network ATM fees, while EverBank offers up to $15 in monthly rebates, with unlimited reimbursement for balances over $5,000. These policies are generally automatic, with the refunded amount credited at the end of the statement cycle.

Strategies to Avoid ATM Fees

Beyond selecting a bank with favorable policies, individuals can employ several strategies to minimize or eliminate ATM fees. A primary method involves utilizing ATMs that are part of your bank’s direct or partner networks. Most banks provide online ATM locators or mobile apps that pinpoint nearby fee-free machines, making it easier to plan cash withdrawals. Checking these resources before needing cash can prevent unexpected charges.

Another effective strategy is to request cash back when making a purchase at a retail store, such as a grocery store or pharmacy. Many retailers, including Walmart, Target, CVS, and gas stations, offer this service at the point of sale when using your debit card. This allows you to receive a small amount of cash, typically up to $100 or $200, without additional fees, as it is treated as part of your debit card transaction rather than an ATM withdrawal. This option is often free and a convenient alternative to finding an ATM.

Planning your cash needs in advance can also significantly reduce ATM fees. Instead of frequent small withdrawals, consider taking out a larger amount of cash less often. This approach minimizes the number of transactions subject to fees, especially if you regularly use out-of-network ATMs. If your bank charges a flat fee per transaction, a single larger withdrawal will be more cost-effective than multiple smaller ones.

Reducing reliance on physical cash through digital payment methods can diminish the need for ATM visits. Services like Zelle or Venmo facilitate direct transfers between individuals, while mobile payment options like Apple Pay or Google Pay allow for card-free transactions at many merchants. Opting for credit or debit card payments for most purchases, especially travel credit cards that waive foreign transaction fees, can further reduce the need for cash and ATM withdrawals.

Selecting a Bank for ATM Fee Avoidance

When choosing a bank to avoid ATM fees, consider several factors. The size and accessibility of the bank’s fee-free ATM network are important. Evaluate how extensive the network is in your most frequented locations, such as near your home, workplace, or common travel destinations. Banks partnering with broad networks like Allpoint or MoneyPass, or credit unions within the CO-OP Network, often provide thousands of accessible machines, which is a significant advantage.

Understanding a bank’s ATM fee reimbursement policies is important. Some banks offer unlimited reimbursements for out-of-network ATM fees, while others may impose monthly limits, such as $10 or $20. Confirm any conditions to qualify for these reimbursements, such as maintaining a minimum balance. For instance, some accounts might offer unlimited reimbursements only if a certain daily balance, like $5,000, is maintained.

Different types of checking accounts within the same bank might carry varying ATM fee benefits. Premium checking accounts, student accounts, or online-only accounts often come with more favorable ATM fee structures, including waivers or reimbursements, compared to standard accounts. Review the specific terms and conditions for each account type to identify the one that best aligns with your transaction habits.

While ATM fee policies are an important consideration, they are part of a broader banking relationship. Other account features, such as online banking capabilities, mobile app functionality, interest rates on checking or savings balances, and minimum balance requirements, should also be weighed. A comprehensive evaluation of all these elements helps in selecting a bank that not only avoids ATM fees but also meets your overall financial needs.