ATM Fees Hit an All Time High, Plus Other Findings From New Bankrate Analysis

08/21/2024 07:30 pm

NEW YORK–The fees for using out-of-network ATMs continue to rise, with an average fee of $4.77 this year, according to Bankrate’s 2024 Checking Account and ATM Fee Study.

“This reflects an increase from $4.73 last year and the highest annual amount since Bankrate began tracking ATM fees in 1998,” the company said in releasing the analysis.

Other fees on the rise include overdraft fees, Bankrate reported, with the average having climbed this year to $27.08, up from $26.61 in 2023.

“This increase comes after two straight years of declines, after the average overdraft fee had peaked at $33.58 in 2021,” Bankrate said. “Overdraft fees are still charged by 94% of accounts Bankrate surveyed, and they can run as high as $38.”

Meanwhile, it may be getting harder to avoid monthly service fees for interest-earning checking accounts, with the average minimum balance required to waive such a fee climbing to a record high of more than $10,000, according to the Bankrate survey.

One Bright Spot

“Like last year, a particular bright spot from this year’s survey data is that free checking accounts are still easy to obtain: Nearly half (47%) of non-interest accounts charge no monthly service fees, while another 46% allow customers to avoid the fee by setting up regular direct,” Bankrate reported.

Additional Key Findings

Additional insights from Bankrate’s 2024 Checking Account and ATM Fee Study include:

• ATM fees are at an all-time high. The average total cost for using an out-of-network ATM is now $4.77. This includes the average surcharge of $3.19 levied by ATM-operating banks, plus the average charge of $1.58 from one’s own bank for using an out-of-network ATM.
• Overdraft fees are back on the rise. After declining for the previous two years, the average overdraft fee has climbed to $27.08 in 2024, up 1.7% from last year. Meanwhile, the average nonsufficient funds (NSF) fee has landed at $17.72, which is down 11% from a year ago.
• For interest checking accounts, the average minimum balance to avoid service fees is up sharply. The average monthly fee for interest checking accounts is now $15.45, with the average minimum balance to avoid a monthly fee being $10,210 — up 18% from last year, Bankrate reported.
• Free checking accounts are highly accessible. Nearly half of non-interest checking accounts (47%) charge no service fee, while another 46% waive the fee for those who set up regular direct deposit.
• Atlanta is the metropolitan area with the highest ATM fees. Among the metro areas covered in Bankrate’s survey, Atlanta is where you’ll see the highest average out-of-network ATM fee, of $5.33. The metro areas of San Diego and Phoenix are tied in 2024 for the second highest average combined ATM fee, of $5.22
• The area with the lowest average combined fee is Boston, at $4.16, followed by Seattle ($4.34) and Philadelphia ($4.42
• Surcharges continue to rise: In 2024 (and in every year since 2019), 100% of the banks Bankrate surveyed said they charge non-customers for using their ATMs. This year, the average surcharge has climbed to a record high of $3.19, with increases in surcharge amounts outnumbering decreases by a four to one margin, Bankrate reported.
• Average out-of-network fee holds steady: Meanwhile, the average out-of-network ATM fee remains unchanged from last year, at $1.58, and it’s charged in 61 percent of cases, Bankrate’s survey found. Among the banks charging this fee, the most common amount is $3, while 39 percent of banks surveyed have at least one account offering free out-of-network withdrawals.
• Combined ATM charges climb to a new record: Together, the total average cost for using an out-of-network ATM is now $4.77, which is up for the fourth consecutive year and the highest amount since Bankrate began the survey in 1998. This combined fee consists of the average charge from one’s own bank and the average surcharge assessed by an ATM-owning bank, Bankrate said.
• Overdraft fees have risen over last year: After the average overdraft fee declined for two straight years, it has now climbed to $27.08 in 2024, up 1.7% from $26.61 in 2023. “This increase also comes after the average overdraft fee hit its lowest level in nearly two decades last year,” Bankrate said. “Among banks surveyed in 2024, overdraft fee increases outnumbered both fee decreases and fee eliminations.”
• 94% of banks surveyed charge overdraft fees.

For the full survey, go here.