ATM Fees Go Through The Roof - How To Avoid Them
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ATM Fees Go Through The Roof - How To Avoid Them

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ATM fees hit a record high for the 11th year in a row, according to a recent Bankrate.com study. According to the study, the average total cost of an out-of-network ATM withdrawal is now $4.69, up 2.6 percent from $4.57 last year. In New York City the average ATM fee stands at $5.14, and in Pittsburgh it is still 5 cents higher. ATM fees have now risen over 55% over the past decade. It seems like an extraordinary burden to have placed against you for the convenience of accessing your own money.

The obvious first line of defense for avoiding ATM fees is to maintain an account with a bank or credit union that has a branch and/or ATM network that is convenient to you. You can see a map showing all banks near you here, and all nearby credit unions here. BestCashCow recommends keeping only the minimum amount in these accounts necessary to access the bank or credit union’s ATM and transactional network, and to put your remaining cash balances in the highest yielding accounts you can find so that your money works for you. Often, but not always, the highest yielding accounts will be online savings accounts, and you can find a list of the highest yielding accounts here.

The obvious second line of defense for avoiding ATM fees is to use credit cards whenever possible. Having the right card enables you to be earn reward points or cash back for your spend.

However, sometimes, it simply is impossible to find an ATM network easily when you need cash. That’s when a strategy like going into a grocery or drug store and making a small purchase on your bank’s debit card can enable you to get cash back. For those times when that strategy doesn’t work, you should also check out the Venmo app which enables you to quickly transfer cash to anyone. Finally, if you really find yourself paying out-of-network ATM fees too often, you might want to consider the tried and true strategy of carrying a checkbook.

Ari Socolow
Ari Socolow: Ari Socolow is the Chief Economist and Editor-in-Chief at BestCashCow. He is particularly interested in issues relating to bank transparency and the climate crisis. Since co-founding BestCashCow in 2005, Ari has been frequently cited in the media as an expert on local and national savings accounts, CD products, mortgage and loan products and credit card rewards products.

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