ATM Fees Explained

Video Transcript

Today, we're tackling a topic that leaves a lot of people confused. ATM fees. Whether you're withdrawing cash from your own bank or hitting up a random ATM, there's a lot to know about when and why these fees get charged. Let's clear things up for you so you can keep more of your money in your wallet.

Let's start with the basics. The easiest way to avoid an ATM fee is to use one at your own bank or credit union. This is obviously a lot easier if you live or work within an area that has a lot of branch locations. Uh, but this isn't always the case, or just practical.

What about if you need to use a different ATM? That's where things start to get a little bit tricky. If you walk up to any random ATM, you could be charged two separate fees. One from your own bank and one from the ATM owner. In 2024, the average ATM fee was around $4.77. This is because not only could the ATM owner charge you between $2 and $5, but your bank could also add on an additional $1.50 to $2.50.

But what about those surcharge-free ATMs? You've probably seen these machines sitting in the corner of a store or a pharmacy. These ATMs are usually a part of a large network. AllPoint has over 55,000 ATMs across the US and stores like Walgreens. Co-op is the largest credit union operated network with around 32,000 ATMs. Keep in mind that even though these machines don't charge you a separate fee for using your card, your bank might still hit you with a fee if this ATM is outside of your network. You can check the back of your debit card by flipping it over to see what network you belong to, or you can check with your credit union or bank app or website for local free ATMs.

A place that you may not expect to get hit with an ATM fee is the grocery store, but it is getting more and more common. Some chains are actually starting to charge a fee for taking cash back with your purchase. This fee could range between $1.50 to $3 per transaction. So, make sure you double-check before assuming that it'll be free to get some cash back.

And lastly, let's talk about getting cash at places like casinos, theme parks, or even some convenience stores. These spots are known for charging ridiculously high fees for pretty much everything. And ATMs are no exception to this. You could be faced with a fee of $5 to $20 per transaction just for withdrawing cash. And in casinos, it's getting even worse. They might charge you a flat fee plus a percentage of the total amount that you take out.

So, try your best to plan ahead and take out whatever cash you need before you get to one of these places, because it'll be a lot cheaper using one of your own local ATMs.