NEW YORK–ATM fees hit a record high for the 11th year in a row with the fee for using an out-of-network ATM at a bank or thrift hitting $4.69, according to a new Bankrate.com report.
Overall, ATM fees are up 55% over the past decade, while the average overdraft fee has also hit a new average high of $33.38.
Bankrate surveyed 10 banks and thrifts in each of 25 large U.S. markets from July 27 to Aug. 10, 2017.
According to the Bankrate.com analysis, which can be found here, consumers in Pittsburgh are paying the highest average out-of-network ATM fee ($5.19), while those in Dallas have the lowest ($4.07). Meanwhile, consumers in Philadelphia are being hit with the highest average overdraft fee ($35.30), while the lowest average overdraft fees ($31.44) can be found in one of the most expensive markets.
The Bankrate.com ATM surcharge data includes both the surcharge assessed by the ATM owner on a noncustomer and the fee charged by the accountholder's own financial institution for using another institution’s ATM. The average ATM surcharge hit a new record for the 13th year in a row, 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.
On overdrafts, Bankrate.com said the most common fee is $35, and the number of banks that increased their fee outnumbered those who lowered it by seven to one.
According to Bankrate:
Highest Average ATM Fee by Metro*
1. Pittsburgh $5.19
2. New York $5.14
3. Washington, D.C. $5.11 (tie)
3. Cleveland $5.11 (tie)
5. Atlanta $5.05
Lowest Average ATM Fee by Metro*
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
Bankrate.com noted that 38%% of non-interest checking accounts are free without stipulation, which is half the number found in 2009. However, it further noted an additional 61% of checking accounts will waive the entire monthly fee (most commonly $12), typically with direct deposit. All told, 99% of non-interest accounts are either free or can become free, up from 97% last year, Bankrate said.
“On the other hand, less than 5% of interest checking accounts are free by default,” the company said. “While 77% will waive the service fee (most frequently $25) based upon a minimum balance, the most common threshold is a hefty $10,000. An additional 15% have direct deposit as a fee waiver, up from 8% last year. Interest earnings on checking accounts remains scant, with the average unchanged from last year at 0.06%. Overall, just 2.5% of all accounts assess a fee on debit card transactions at the point-of-sale, ranging from $0.35 - $2. In all cases this is only for PIN-debit transactions.”