NEW YORK–Fees for using an out-of-network ATM have hit a new high, according to a new survey, which also found that conversely overdraft fees continue to fall.
According to Bankrate.com’s 2023 Checking Account and ATM Fee Study, consumers are paying a record-high average of $4.73 in fees for using an out-of-network ATM — beating the previous high of $4.72 in 2019 in the company’s survey.
“ATM fees are biting harder than ever as the cost of out-of-network withdrawals hits a new record high,” said Bankrate’s chief financial analyst, Greg McBride. “But with less need for cash and expansive ATM networks that make it easier than ever to stay within network, the fees are easily avoidable and need not be a frequent drain on your bank account.”
The new high in ATM fees come at the same time the company said it has found the average overdraft fee has fallen to $26.61, which reflects a decrease of 11% over the amount from Bankrate’s 2022 study.
Fees Down, But Still Charged
“While this average is down, overdraft fees are still charged by 91% of accounts that Bankrate surveyed — and they can run as high as $38,” the company reported. “The study also found that 45% of noninterest-bearing checking accounts are free, in that they don’t charge a monthly service fee or require a minimum balance. This is down slightly from 46% in 2022. Of the interest-bearing checking accounts surveyed, the average annual percentage yield (APY) is near rock-bottom, even though the Federal Reserve has raised rates a total of 11 times since March 2022.”
For the study, now in its 26th year, Bankrate said it surveyed a total of 10 banks and thrifts in each of 25 large U.S. markets. Information was gathered regarding checking accounts that bear interest and those that don’t, as well as ATM fee policies.
The Highlights
Among the other highlights in the research, according to Bankrate:
- Of the new high average out-of-network ATM fee of $4.73, the average surcharge levied by the ATM owner is $3.15 and the average fee charged by the bank for using an out-of-network ATM is $1.58.
- The average nonsufficient funds (NSF) fee reached a 25-year low of $19.94, which is a 25% decrease from 2022. NSF fees are charged on 70% of accounts.
- Free checking “remains easily attainable.” The number of free checking accounts has decreased slightly to 45% (down from 46% in 2022), although 87% of noninterest-bearing checking accounts are either free or can become free when direct deposit requirements are met.
- The average monthly fee on an interest checking account is $15.33, with the average minimum balance required to avoid the fee being $8,684. The average APY is 0.05%, a “scant increase from the record low of 0.03% for the past two years.”
- Of the major metro areas covered in Bankrate’s study, the highest average total combined ATM fees can be found in Atlanta ($5.33 for using an out-of-network ATM), with the lowest combined average fees in Boston ($4.24).
- For the fifth year in a row, 100% of ATM-owning banks in Bankrate’s study reported charging non-customers for using their ATMs. The average surcharge levied by ATM owners is now $3.15, up slightly from last year’s record of $3.14 and marking the 22nd record high in the past 25 years.
The full report can be found here.
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