ATM Fees Are Hitting You Hard in the Old Debit Card

ATMs are withdrawing more cash from their users than ever before, according to Bankrate. The personal finance company says the average fee to use an out-of-network ATM hit $4.77 this year, the highest it has recorded since it started tracking the fees 26 years ago. "If you make an out-of-network ATM withdrawal, expect to pay, and pay more than ever before," says Bankrate chief financial analyst Greg McBride. "Fees have increased again and you'll typically pay two fees—one to the ATM owner and another to your own bank."

• The 0.8% increase from last year's average of $4.73 is entirely down to fees charged by ATM owners, not customers' own banks, Quartz reports. According to Bankrate, the average bank charge for customers using out-of-network ATMs was $1.58—unchanged from the previous year, and down from a high of $1.72 in 2017. The average charge from ATM operators, meanwhile, rose to $3.19.

• McBride's advice: "Confine cash withdrawals to in-network ATMs or get cash back when using a debit card."
• In some cities, the average charge for out-of-network ATM withdrawals was well over $5, Fox News reports. According to Bankrate, Atlanta had the highest average fee out of 25 metro areas, at $5.33. The average was also over $5 in San Diego, Phoenix, Detroit, and Cleveland. Boston had the lowest average fee—$4.16.
• Overdraft fees are also rising, according to Bankrate's study. It found that after two years of declines, the average fee rose to $27.08 this year, up from $26.61 in 2023.

(More bank fees stories.)