Banking, finance, and taxes
ATM Fees Set Record Again, Up 55% in Past Decade; Overdraft Fees Climb Too
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Banking consumers had to dig deeper into their pocket again last year, as ATM fees climbed to a record high for the 11th consecutive year, according to the latest Bankrate.com checking study.
The average total cost of an out-of-network ATM withdrawal is now $4.69, an increase of 2.6% from $4.57 last year. ATM fees soared 55% over the past decade, according to Bankrate, which has surveyed non-interest and interest accounts for 20 years.
Consumers usually get stuck with two different fees when they use 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.
The average ATM surcharge reached a record for the 13th straight year, rising to $2.97 from $2.90 last year. The average fee charged by a consumer’s own bank for going outside the ATM network increased 3% to $1.72, also a new high, according to Bankrate.
Consumers are dealing with other elevated fees related to bank transactions. After seeing a slight dip in 2016, the average overdraft fee has bounced back to a new high of $33.38, up from $33.04 last year. The number of banks that increased their fee outnumbered those who lowered it by seven to one.
Consumers in Pittsburgh are faced with the highest average out-of-network ATM fee ($5.19) of all the top 25 major metro areas, while those in Dallas have the lowest ($4.07). Patrons in Philadelphia are saddled with the highest average overdraft fee ($35.30), compared with San Francisco whose overdraft fees are the most lenient ($31.44 on average).
The survey group consisted of a total of 10 banks and thrifts in each of 25 large U.S. markets; one interest and one non-interest account, as well as their associated ATM and debit card fee policies were surveyed from 247 institutions offering checking accounts; 241 interest and 240 non-interest accounts were surveyed between July 27 and August 18, 2017.
Highest Average ATM Fee by Metro Area*
| 1. Pittsburgh | $5.19 |
| 2. New York | $5.14 |
| 3. Washington, D.C. | $5.11 |
| 3. Cleveland | $5.11 |
| 5. Atlanta | $5.05 |
Lowest Average ATM Fee by Metro Area*
| 21. Cincinnati | $4.30 |
| 22. Seattle | $4.29 |
| 23. San Francisco | $4.23 |
| 24. Milwaukee | $4.19 |
| 25. Dallas | $4.07 |
*Reflects both ATM fees combined (those charged by the ATM operator and those charged by the consumer’s own financial institution).
Highest Average Overdraft Fee by Metro
| 1. Philadelphia | $35.30 |
| 2. Baltimore | $35.25 |
| 3. Miami | $34.68 |
| 4. New York | $34.63 |
| 5. San Diego | $34.22 |
Lowest Average Overdraft Fee by Metro
| 21. Seattle | $32.20 |
| 22. St. Louis | $31.85 |
| 23. Detroit | $31.80 |
| 24. Boston | $31.79 |
| 25. San Francisco | $31.44 |
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