This Common Bank Fee Has Risen 55% Over the Past Decade

Some of the most competitive bank fees are also the most avoidable.

ATM fees hit a new high for the 11th consecutive year, according to a study of fees by personal-finance site The survey looked at 10 banks and thrifts (savings and loan institutions) in 25 big U.S. markets: 1 interest account, 1 non-interest account and their associated ATM and debit-card fees were surveyed from 247 institutions offering checking accounts.

  • The average ATM surcharge rose by 2.4 percent to $2.97
  • The normal ATM out-of-network fee spiked 3 percent to $1.72
  • The typical bank-imposed ATM fee climbed 2.6% to $4.69
  • Highest average ATM fees by subway was $5.91 (Pittsburgh)
  • Lowest average ATM prices by subway was $4.07 (Dallas)

When you cheat on your bank by withdrawing money from a competitor’s ATM, a warning message on the screen makes it clear customers will likely face various fees. These are far “stickier” fees that aren’t so easily avoided. For instance, many banks require average daily balances to qualify for free checking, impose charges for printing tests (for those who still use them) and — in certain rare cases — even closing accounts.

Why are these findings important?

The combined total might shock some consumers who are usually left to pay two different fees when using an out-of-network ATM: The surcharge assessed by the ATM owner on a non-customer and the fee charged by the account holder’s own bank for using another bank’s ATM. “When it comes to ATM and overdraft fees, a little advance planning can go a long way,” said chief financial analyst Greg McBride.

What other bank fees are easily avoidable?

Since 2010, federal law has required banks to acquire customers to opt in to overdraft fees, and they often receive multiple reminders that they’ve done so. After falling slightly in 2016, the average overdraft fee has bounced back to a new high of $33.38, up 1 percent from $33.04 final year, Bankrate found. The most typical fee is $35, and the amount of banks that increased their commission outnumbered those who lowered it by 7 to 1.

How will ATMs be impacted by chip-enabled cards?

Overdraft revenue for all depositories increased to $34 billion in the second quarter of 2017, up 1.2% by the first quarter, according to a separate study published last month by Moebs Services, an economic-research company in Lake Bluff, Ill.. The business median overdraft price has stayed at $30 per item since 2013. Following the excellent Recession, the median overdraft price increased to $29 in 2012 from $26 in 2009, Moebs found.

How will ATMs be affected by chip-enabled cards?

There are greater than 400,000 ATMs in the U.S., and more than half have been run by Independent companies, the ATM Industry Association, a trade group, told MarketWatch. Banks that issue credit and debit cards will no longer be solely responsible for fraud, according to MasterCard MA, +0.90 percent Visa V, +0.30 percent Policy starting this month. This could encourage small business owners To get rid of standalone ATM machines.

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