No one likes bank fees but ATM fees can be particularly annoying. To many, it just seems unfair to have to hand over some of your hard-earned cash just to get access to your own cash. Plus, it’s not uncommon to get dinked twice if you go to an ATM outside your bank’s network — once by your bank (which may charge you around $2.00 to $3.50) and once by the company operating the ATM (which can run anywhere from $1.50 to a whopping $10).
Due to these double fees, hitting an out-of-network ATM on a regular basis can quickly put a dent in your bank account. The good news is that these fees are not inevitable. Here are seven simple ways to avoid ATM fees.
Planning Ahead
Before heading out for the day or evening, consider whether or not you may need cash. Some independent restaurants, stores, and barber shops still operate as cash-only businesses. So if you’re testing out a new spot, you may want to check the website so you’re prepared with cash if needed.
If an establishment only accepts cash and you don’t have any, you may get stuck using the nearest ATM, which may result in double fees. It can also be a good idea to get some cash in advance (fee-free) if you’re going to a restaurant, gas station, or store that offers a discount for paying cash.
Recommended: Pros & Cons of Living Cash-Only
Using Your Bank’s ATMs
Taking some time to familiarize yourself with your bank’s closest ATM locations (considering both home and work) can save you money and hassle down the line. There may be a location finder tool on the bank’s website or app, or you can do a general web search, or even use your phone’s maps app.
Generally, the larger, national banks will have more options for branded ATMs than smaller, regional institutions. Banks of all sizes, however, often partner with large ATM networks in order to expand their customers’ options and provide them with a fee-free banking experience.
Finding Partner ATMs
The biggest advantage of partnership networks is the potentially vast number of fee-free ATM locations available. Some of the largest networks even include ATMs in locations like convenience stores, pharmacies, and retailers.
If your bank partners with an ATM network, you may be able to perform transactions at these ATMs without getting hit with any fees from your bank, though some locations may collect ATM surcharges.
The easiest way to find your bank’s partners is to check the back of your debit card. If you see a logo for Allpoint , for example, you can search their app for the closest locations.
This doesn’t automatically mean that your transaction will be entirely fee-free, but either your bank or the partner may waive charges. It’s a good idea to check with your bank for details.
Ready for a Better Banking Experience?
Open a SoFi Checking and Savings Account and start earning 4.20% APY on your cash!
Taking Out More Than You Need
ATM fees are typically per transaction, so one easy way to avoid extra charges is to withdraw more cash than you need. This is particularly true when traveling overseas, where surcharges can be significantly higher than domestic ATM fees. The downside is that you may feel uncomfortable keeping a bunch of cash on hand.
Recommended: ATM Withdrawal Limits – What You Need to Know
Getting Cash Back
If you need cash and aren’t near one of your bank’s ATMs, you may be able to avoid paying an ATM fee by finding a nearby grocery store, gas station, or large retailer. Many of these retailers offer cash back when you make a purchase using your debit card. If you go this route, you’ll need to make a purchase (ideally for something you need) and ask for cash back. The cashier will add the amount of cash you want to the purchase price and give it to use as cash, typically without charging any fee.
Choosing a Different Bank
Not all banks charge out-of-network ATM fees. If you’re getting hit with fees, especially double fees, you may want to consider switching to an institution that has a larger ATM network, doesn’t charge ATM fees, and/or refunds ATM fees charged by machine providers.
Some banks will reimburse up to a certain amount every month in fees charged by an out-of-network provider. If you suspect you’ll use non-network ATMs frequently, you may want to consider a bank that will refund you.
Using Personal Payment Apps to Pay Your Friends
With peer-to-peer (P2P) payment apps like Venmo, you can often avoid a trip to the ATM entirely. Once you set up an account and link your bank account, it’s easy to move money directly from your account to your friends’ accounts. Your bank may also have its own P2P payment app.
The Takeaway
ATM fees can be annoying and add up quickly. But, fortunately, this is usually an avoidable expense.
One way to avoid ATM fees is to do some research on where your financial institution’s branded ATMs are located in your area, as well as ATMs that are in their partner networks. Other options include using payment apps or asking for cash back at a retail cash register when it’s available.
Open a SoFi Checking and Savings Account
Another easy way to avoid ATM fees is to open a checking and savings account with SoFi. With SoFi Checking and Savings, you can withdraw cash at 55,000+ ATMs worldwide without paying any fees. What’s more, you’ll earn a competitive annual percentage yield (APY) and won’t pay monthly account fees that can whittle away at your balance.
Ready to say goodbye to ATM fees? Say hello to SoFi Checking and Savings.
SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
SOBK0623010
Source: sofi.com