ATM fees are a frustrating expense that eats into your hard-earned money. With fees reaching an all-time high of nearly $5 per transaction in 2024, withdrawing cash can sometimes feel like a costly mistake. Fortunately, there are multiple strategies you can use to avoid these fees and ensure you’re accessing your money without unnecessary charges.
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Why Are ATM Fees So High?
According to Bankrate, banks have steadily increased ATM fees over the past five years, capitalizing on customers who use out-of-network ATMs. Over 60% of ATM users report that free transactions are only available at specific in-network machines, forcing many to rely on third-party ATMs with hefty fees.
However, you don’t have to be at the mercy of these rising costs. With a little planning and strategy, you can avoid ATM fees altogether.
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7 Smart Ways to Avoid ATM Fees
1. Stick to In-Network ATMs
The easiest way to avoid fees is to use your bank’s ATM network. Many banks offer locator tools in their mobile apps to help you find nearby in-network ATMs. If you use an online bank, check if they are part of larger ATM networks like Allpoint or MoneyPass.
2. Open an Account That Eliminates ATM Fees
Some banks offer premium accounts that allow unlimited ATM withdrawals without fees. While these accounts may have a monthly charge, the fee is often waived if you maintain a high enough balance. Check with your bank to see if you qualify for such an account.
3. Choose a Bank That Refunds ATM Fees
Certain financial institutions, particularly online banks, offer ATM fee reimbursements. This means that even if you use an out-of-network ATM, the bank will refund the fee up to a certain amount each month. However, these accounts often have eligibility requirements, such as maintaining a minimum balance.
4. Get Cash Back at Stores
Many major retailers, including grocery stores and gas stations, allow customers to get cash back when using a debit card at checkout. This is a simple, fee-free way to withdraw cash without using an ATM. Just be aware of the cash-back limits, which vary by retailer.
5. Withdraw Cash from a Bank Teller
If you have access to a physical bank branch, you can withdraw money directly from a teller without incurring an ATM fee. While this may not always be convenient, it’s a great way to access your funds without extra charges.
6. Make Larger Withdrawals When Necessary
If you must use an out-of-network ATM, consider withdrawing a larger amount to minimize the number of transactions. Since the fee is often the same regardless of how much you withdraw, taking out $100 instead of $20 reduces the frequency of fees.
7. Monitor Your Balance to Avoid Overdraft Fees
Always check your account balance before withdrawing cash. If you overdraw your account, you could face even steeper penalties, including overdraft and non-sufficient funds (NSF) fees, which are often more expensive than ATM fees.
Best Banks for Fee-Free ATM Access
If you frequently withdraw cash, choosing the right bank can save you money. Here are some top banks that offer fee-free ATM access or reimbursement options:
- Alliant Credit Union
- Ally Bank
- Axos Bank
- Bank5 Connect
- Betterment
- BrioDirect
- Capital One
- CFG Bank
- Charles Schwab Bank
- Chime
- CIT Bank
- Discover
- EverBank
- LendingClub
- NBKC Bank
- SoFi
- Synchrony Bank
- TAB Bank
- Varo Bank
Final Thoughts: Take Control of Your ATM Fees
ATM fees may be rising, but that doesn’t mean you have to pay them. By sticking to in-network ATMs, using cash-back options at stores, or choosing a bank that reimburses fees, you can keep more of your money where it belongs—in your pocket.
If you find yourself frequently paying ATM fees, consider switching to a better banking option. A simple call to your bank may also reveal ways to waive fees or qualify for an account with better perks. Additionally, digital payment methods like Apple Pay and Google Wallet can reduce the need for cash altogether.
By planning ahead, you can avoid unnecessary fees and take full control of your finances.
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