ATM fees set a new record high for the 10th year in a row, with the total cost of using an out-of-network ATM withdrawal rising to $4.57, according to Bankrate.com’s 19th annual checking survey.
Consumers typically must deal with 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 accountholder’s own financial institution for using another credit union or bank’s ATM.
This year, the average ATM surcharge hit a new record, rising to $2.90 from $2.88 last year. The average fee charged by a consumer’s own financial institution for going outside the ATM network increased 1.8% to $1.67.
“With ATM fees now at an average of $4.57, an unplanned stop at the ATM for $20 will cost nearly 23% in fees. A little advanced planning when making withdrawals can add up to big savings for consumers in the long run,” Bankrate.com’s chief financial analyst Greg McBride, CFA said.
While ATM fees continue to rise, consumers are seeing a bit of relief when it comes to overdraft fees. Breaking a streak of 17 consecutive years of new highs, the average overdraft fee dipped slightly to $33.04 from $33.07 last year. The most common overdraft fee amount is $35. Occurrences of a fee not charged for overdrafts of $10 or less are also increasing, a potential pre-emptive move against any forthcoming rules issued by the CFPB, McBride noted.
San Francisco has both the lowest average overdraft fees and average out-of-network ATM fees. Philadelphia has the highest average overdraft fees. Phoenix consumers pay the highest average out-of-network ATM fees.
The number of free non-interest checking accounts increased for the first time since 2009, with 38% of non-interest accounts not carrying any monthly fees or balance requirements. Non-interest checking accounts saw declines in the average opening balance ($169), monthly service fee ($5.78), and balance required to avoid the fee ($670). The last time all three declined was 2008.
The percentage of interest-free checking accounts increased, with 5.5% of the accounts carrying no monthly fees regardless of balance or activity. Although the average monthly service fee on interest checking accounts was down – slipping half a percent to $15.17, the balance required to avoid fees on interest checking accounts soared more than 10% to a new high of $7,037.
