ATM Fees On The Rise

Posted on 13. Dec, 2005 by in News

A story on AccountingWEB today reports that Automated Teller Machines (ATM) fees have hit a record high according to Bankrate.com’s latest survey of large banks and thrifts. The fees are leaving many balances short despite rising interest rates.

The key findings of the semi-annual survey, which compares checking accounts and ATM fees offered by large banks and thrifts in the 25 largest markets with a sampling of checking accounts available at online banks, include:

  • The fee for using the “wrong” ATM – one owned by a bank other than the bank issuing the ATM card – hit an all-time record high. Consumers get hit twice for such withdrawals, by the other bank’s ATM fee and by their own bank’s fees, for a total average fee of $2.91.
  • Bankrate.com estimates that American consumers will pay more that $4.3 billion in withdrawal fees for using ATMs not owned by their own bank in 2005.
  • Bounced check fees have become sneakier. The average insufficient funds fee actually fell a few cents to $26.90 from $27.13, however, it remains the second-highest fee recorded since 1998 when Bankrate.com began surveying checking accounts. To offset the lower fee, more banks have instituted tiered fees that ramp up the more checks that bounce or are left uncovered.
  • Interest-bearing checking accounts remain an unattractive option, with consumers paying more to open an account and locking up a lot more money just to gain a pittance of interest.

So what can you do?

  • Plan Ahead – plan our your withdrawals ahead of time so that you can use your own bank’s ATM before you go out for the night or leave on vacation
  • Check on Debit Card Fees – check with your bank to see if they charge fees for the use of your debit card on certain transactions – like those involving the use of your pin instead of your signature

ATM Fees, ATM, Bank fee, Debit Card

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