ATM fees continue to rise. According to a new Bankrate.com survey – The average fee for an out-of-network ATM withdrawal is now a record setting $4.72. So beware of those pesky ATM fees the next time you need to get cash.
To avoid high ATM fees you need to understand how your account works. Do you get charged for out-of-network ATM withdrawals? If so, making your ATM withdrawals at the bank or staying in network (credit unions and other financial institutions) will help you avoid them. Another option is to get cash back on a purchase transaction at the store. For example, when you go shopping for groceries or something.
Low Interest Rates, Higher Bank Fees
Unfortunately, the lower interest rates have caused banks to look for other avenues to generate more money. Jamie Dimon, the CEO of JP Morgan Chase said, “The bank can trim costs and charge clients more account fees to make up for squeezed margins as rates fall.” For more Dimon’s perspective, check out- “Jamie Dimon says JP Morgan is preparing for the risk of zero rates in the US.”
So beware of high bank fees like ATM and overdraft fees, they are on an upward trend right now.
Overdraft Fees
Bankrate’s 2019 checking account and ATM fee study showed the average overdraft fee is $33.36. These fees can quickly add up to hundreds of dollars on multiple transactions in a single day. A few things you can do to minimize your risk of an overdraft are to:
- Monitor your checking account balance,
- Set up low balance alert, and
- Check with your bank of financial institution about setting up overdraft protection (i.e. linking a savings account).
Photo: Mike Mozart
