Going to another bank to use their ATM has become increasingly expensive over the years. A new survey from Bankrate shows that the cost of using an out-of-network ATM is higher than at any time since banks began charging fees in 1998.
The average ATM fee is currently $4.77, up from $4.73 a year ago, the survey said.
When Bankrate began tracking ATM fees, the average cost was $1.97. A decade later, it was $3.43. Fees hit the $4 mark for the first time in 2012 and have remained above that mark ever since.
There are two separate fees that may apply when using an out-of-network ATM. One is charged by the bank processing the transaction, which averages $3.19. The customer’s home bank also typically charges a fee, which averages $1.58, according to the study.
“If you withdraw money from an ATM outside your network, expect higher fees than ever before,” said Greg McBride, senior financial analyst at Bankrate, in a press release. “Fees have risen again, and you typically pay two fees — one to the ATM owner and another to your own bank. Limit cash withdrawals to ATMs within your network, or get cash back if you use a debit card. Check to see if your bank participates in a nationwide ATM network that’s free to use.”
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Average ATM fees can vary by city, but in Atlanta, San Diego, Phoenix, Detroit and Cleveland they exceed $5, according to Bankrate.
Another common fee that bank customers have to pay is overdraft fees. Bankrate says that average overdraft fees are slightly higher this year than in 2023. The average overdraft fee in 2024 is $27.08, which is up from $26.61 a year ago.
However, fees are lower than in past years. In 2022, overdraft fees averaged $29.80 and in 2021, they averaged $33.58. The Biden administration has made efforts to cap overdraft fees.
Earlier this year, the Consumer Financial Protection Bureau proposed new rules that would allow banks to charge a break-even fee or a benchmark fee of between $3 and $14. Another option would be for banks to treat overdrafts like other forms of credit, where they could charge interest.
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The proposed rule changes come after some banks have already made changes to overdraft fees to appease the Biden administration. In 2022, Bank of America reduced its overdraft fees from $35 to $10.
