Retrieving cash from your checking account is becoming an increasingly pricey affair, as revealed by the latest ATM fee analysis. The yearly average charge for using ATMs outside of your bank’s network has climbed to $4.77, a noticeable jump from $4.73 last year, marking the highest fee level since Bankrate started monitoring these charges back in 1998.
Double Whammy: The Cost of Out-of-Network ATM Withdrawals
“Brace yourself for steeper charges when you use an ATM that’s not part of your bank’s network,” warns Greg McBride, CFA, Bankrate’s lead financial analyst. Two separate fees typically stack up: one slapped on by the ATM operator and another from your own financial institution. McBride suggests sticking to in-network ATMs or opting for cash back during debit card purchases to sidestep these extra costs. Another smart move: check if your bank is linked to a nationwide ATM alliance that lets you withdraw cash without any fees.
Rising Tide of Bank Fees Beyond ATMs
Bankrate’s findings highlight other growing charges, notably overdraft fees, which have inched up to an average of $27.08 this year, rising from $26.61 in 2023. This increase interrupts a two-year downward trend after overdraft fees peaked at $33.58 in 2021. Nearly all accounts — 94% according to the survey — still impose these fees, with some climbing as high as $38.
Snapshot: Bankrate’s 2024 Fee Landscape
- Average ATM out-of-network cost: $4.77 (highest since 1998)
- Average overdraft fee: $27.08 (up 1.7% from 2023)
- Average NSF (nonsufficient funds) fee: $17.72 (down 11% from last year)
- Interest checking minimum balance to avoid fee: $10,210 (up 18% from 2023)
- Top city for ATM fees: Atlanta ($5.33 average out-of-network fee)
ATM Fees: The Two-Fee Dilemma
When you punch in your card at an ATM that’s off your bank’s grid, expect a one-two punch in fees. First, the ATM-owning bank may tack on a surcharge, then your own bank often piles on its own “out-of-network” charge.
Non-customer surcharges keep climbing: Every bank in Bankrate’s 2024 survey confirmed charging non-clients to use their ATMs, continuing a trend unbroken since 2019. This year’s average surcharge soared to a record $3.19, with increases outnumbering decreases four to one.
Bank out-of-network fees remain constant: Sitting steady at $1.58, this fee appears in 61% of banks surveyed. Interestingly, while $3 is the most frequent amount banks charge, nearly 40% offer at least one account with free out-of-network ATM withdrawals.
Combined fees hit an all-time ceiling: Adding the surcharge and the bank’s own out-of-network fee together, the average cost now stands at $4.77 — a peak in Bankrate’s 26-year tracking history and marking the fourth consecutive year of fee hikes.
Top and Bottom Markets for ATM Charges
Looking at metropolitan hotspots, Atlanta leads in ATM fees, with consumers paying an average $5.33 per out-of-network withdrawal in 2024, roughly matching its 2023 and 2022 peaks. Hot on Atlanta’s heels are San Diego and Phoenix, both clocking in at $5.22.
Meanwhile, the friendliest cities for wallet relief include Boston at $4.16, Seattle at $4.34, and Philadelphia at $4.42, taking the lowest spots among the 25 metro areas surveyed.
| 1 | Atlanta | $5.33 |
| 2 (tie) | San Diego | $5.22 |
| 2 (tie) | Phoenix | $5.22 |
| 4 | Detroit | $5.18 |
| 5 | Cleveland | $5.10 |
| 6 | Pittsburgh | $4.98 |
| 7 | Tampa | $4.97 |
| 8 | Milwaukee | $4.88 |
| 9 | Houston | $4.86 |
| 10 | San Francisco | $4.83 |
Overdraft Fees: Climbing Back After the Dip
Trying to make a purchase without enough funds? Banks usually respond in two ways: either they cover the shortfall and slap you with an overdraft fee or reject the transaction outright, possibly charging a nonsufficient funds (NSF) fee. Following a two-year downward slide, overdraft fees have bounced back to $27.08 in 2024 — a 1.7% uptick from $26.61 the previous year. This comes on the heels of last year’s historic low in nearly two decades.
Bankrate’s data also spotlights how fee hikes outpaced both reductions and eliminations among surveyed banks. An overwhelming 94% of accounts still hit customers with overdraft penalties.
The Consumer Financial Protection Bureau (CFPB) is nudging banks with assets exceeding $10 billion toward new regulations. Under proposed rules, approximately 175 banks and credit unions could continue offering overdraft services but would be limited to fees between $3 and $14 or only charge what covers their costs.
NSF Fees: The Long Slide Continues
Notably, NSF fees are heading in the opposite direction. The 2024 average dropped to a historic low of $17.72, an 11% dip from $19.94 a year before. Over a third (36%) of accounts no longer impose NSF fees, up from 30% in 2023. Fee reductions outpace increases by a 2-to-1 margin.
Customer-Friendly Trends?
- Only 6% of banks avoid charging both overdraft and NSF fees.
- Among those that charge, 66% offer some grace period before fees kick in — up from 62% last year.
- This leniency varies, allowing overdrafts from as little as $1 up to $100 without immediate charges.
Early direct deposit, which can help prevent overdrafts by getting your paycheck in faster, remains a rarity — only 21% of banks surveyed offer such two-day access, debuting as a question in this year’s report.
Interest Checking Accounts: Fee Avoidance Now a Costly Balancing Act
Monthly fees on interest-bearing checking accounts have inched higher, averaging $15.45 in 2024, up from $15.33 last year. To dodge this charge, account holders must maintain a minimum balance — which has surged to an all-time average of $10,210, a hefty 18% increase from last year’s $8,684 and a 35% jump since 2020’s $7,550.
On the flip side, many non-interest checking accounts spare users from monthly fees outright or waive charges upon setting up regular direct deposits. Currently, 47% of these accounts come fee-free, with an additional 46% dropping fees once direct deposit kicks in — meaning 93% of non-interest checking accounts are essentially cost-free to maintain.
Money-Smart Moves: How to Sidestep Fees
- Pick banks that reimburse ATM costs. Some institutions refund fees from out-of-network ATM use, softening the blow.
- Opt for cash back at point of sale. Many merchants allow debit card users to get cash when paying, usually without additional charges—though limits may be lower than ATM withdrawals.
- Search for free checking accounts. These accounts typically don’t charge monthly maintenance fees independent of balance size.
- Find accounts with clear fee waivers. If you must pay service fees, seek out those that waive them in exchange for regular direct deposits.
- Consider no-overdraft accounts. Such accounts refuse transactions that would overdraw you, eliminating fees but potentially causing declined purchases.
- Activate overdraft protection. Many banks offer this service, linking accounts or lines of credit to cover shortfalls automatically.
“Toss your spare cash into a high-yield savings account to let it work harder for you,” McBride advises. Being on top of overdraft policies and mindful about avoiding fees can help protect your wallet in this era of rising bank charges.
