Banks are charging record amounts to non-customers who withdraw cash from ATMs, according to a new survey released this week by the personal finance website Bankrate.
The average out-of-network fee climbed to $4.77 this year, an increase of 4 cents from 2023. That’s the highest average total fee since Bankrate began tracking fees in 1998.
“If you make a withdrawal at an out-of-network ATM, expect to pay, and pay more than ever before,” Greg McBride, Bankrate’s chief financial analyst, said in a statement. “Fees have gone up again, and you’ll typically have to pay two fees: one to the ATM owner and one to your own bank.”
On average, your bank will charge $1.58 for using an out-of-network ATM. The out-of-network ATM owner will charge, on average, an additional $3.19, for a combined average fee of $4.77.
Bankrate advises using only ATMs in your bank’s network to make withdrawals to avoid fees when withdrawing cash. Consumers can also request a cash refund when using a debit card for a purchase. Bankrate says that while there is typically no fee for this, the maximum withdrawal limits are often lower than those imposed by ATMs.
In some U.S. cities, the average out-of-network ATM fee can be much higher than in others. Depending on where you live, you could spend more than $5 to access cash. Average ATM fees are highest in Atlanta, where people can pay $5.33 to withdraw money from an out-of-network ATM, according to Bankrate’s survey. Average withdrawal fees also exceed $5 in San Diego, Phoenix, Detroit and Cleveland.
Boston has the lowest withdrawal fees of the 25 metro areas studied by Bankrate, with an average out-of-network fee of $4.16.
To make matters worse, consumers also face higher overdraft fees, which climbed to an average of $27.08 in 2024 after falling for two straight years, according to Bankrate.
The Bankrate survey looked at 10 banks and savings and loan companies in 25 major markets.
ATM fees could increase, partly because Fewer Americans Are Withdrawing CashAmericans made 6 billion cash withdrawals from ATMs in 2009, but that number fell to 5.8 billion in 2015 and 3.7 billion in 2021, according to the Federal Reserve.
McBride said in 2018 MoneyWatch that rates increase every year because “no one is worried about alienating non-customers.”
