Navigating Cryptocurrency Risks: Education Is Key

 By Lou Grilli PSCU

Interest often outpaces understanding in this space; avoid scams by boosting knowledge.

Although the first cryptocurrency launched in 2009, participation and speculation accelerated rapidly over the last two years with terms like NFT and dogecoin entering the daily lexicon. However, interest often outpaces understanding in the cryptocurrency discussion, and people who are just getting involved need to be aware of the security risks. Although most credit unions may not yet be involved in the cryptocurrency sphere, education is essential to avoid dangerous crypto scams.

Crypto 101

Designed to unlock new forms of financial operation, cryptocurrency has the potential to ease and expedite payments. Transactions move at the speed of blockchain, typically requiring minutes, unlike the next-business-day timeframes for the automated clearing house network. In addition, payments made via cryptocurrency do not require a credit union or bank account. And, unlike credit and debit card transactions that can be disputed, cryptocurrency transactions are irreversible.

Just as cryptocurrency offers new opportunities for consumers, it opens doors for bad actors. With no credit unions or banks involved, there is no authority to flag suspicious activity. With no ability to dispute transactions, a victim can’t recover his cryptocurrency once it is lost to a scammer.

More than 46,000 people have reported losing over $1 billion in crypto scams since the start of 2021, according to the U.S. Federal Trade Commission. An  FBI public service announcement warned that cybercriminals are exploiting vulnerabilities in decentralized financial services platforms to steal cryptocurrency. More recently, the Consumer Financial Protection Bureau released a report analyzing 8,300 complaints related to crypto-assets submitted to the bureau from October 2018 to September 2022. The top issue across all complaints was categorized as “fraud or scam,” which includes romance scams, fraudsters posing as law enforcement and fake prize promoters. Another common category cited in the report was “frozen accounts, platform bankruptcies and consumer losses.”

Scams and Fraud

Now is the time to increase awareness of cryptocurrency’s substantial security risks, including these common crypto scams:

Rug pulls. Using open-source software running on a home server, anyone can create a new coin. In addition to the 100 or so coins sold on Coinbase, the largest cryptocurrency exchange in the U.S., there are thousands of coins globally. Periodically, one of these tokens gains a following—usually due to an influencer in the space like Mark Cuban, Snoop Dogg or Elon Musk “discovering” a coin. This is how dogecoin, originally a joke, skyrocketed to a top 10 spot by market cap.

The rug pull occurs when the issuer shuts down the coin and walks away with investors’ money. Sometimes they will claim that they were hacked; other times the coin’s developers just go silent. A notorious rug pull was the anonymously developed, gamified Squidcoin. As popularity increased, so did the “value” of the coin. Reddit buzz and CNBC coverage aided the coin in ballooning from a value of  $0.02 to $2,856.65 within one month. The coin became instantly worthless when the still-anonymous developer shut down the game—and is believed to have walked away with $3.3 million.

Social media scams. Many social media crypto scams involve victims paying an upfront fee either in dollars or in cryptocurrency to “get in on the ground floor.” A common ongoing scam is the “Twitter Crypto Giveaway,” which promises to double the amount of bitcoin or ethereum that users transfer to it. The giveaway link sends the victim to a site asking for verification to receive the bitcoin after making an initial payment to join. Then, the victim is told to send the scammer personal information—and the key to their cryptocurrency.

Phishing scams. In this new twist on an old fraud method, scammers trick the victim into disclosing the password to a crypto exchange account. This allows the cybercriminal to gain access, transfer the digital assets out and disappear before the victim notices. Unfortunately, these transactions cannot be reversed.

Platform bankruptcies and disabling withdrawals. The recent collapse of one of the largest global cryptocurrency exchanges, FTX, has highlighted another form of risk to crypto investors—that of exchanges going bankrupt, with collateral damage as other exchanges freeze customer withdrawals. According to CNBC, the FTX platform was valued by investors at $32 billion before filing for bankruptcy, leaving as many as a million users unable to retrieve their assets. BlockFi, a cryptocurrency platform with $10 billion in assets that is used by more than a million crypto traders, announced via a tweet that it is “not able to operate business as usual” and that it was “pausing client withdrawals.” Genesis Global Capital, an institutional client brokerage, announced that it also is halting customer withdrawals in the wake of the FTX collapse.

Awareness is Crucial

In the uncharted waters of cryptocurrency, fraudsters prey on a lack of caution and awareness of crypto scams. Credit unions can help provide member education, ranging from glossaries of cryptocurrency terms to lists of the security risks involved. It is also important for staff to understand these threats so they can both answer member questions and protect your organization.

Some fintech credit union service organizations also provide educational materials, like PSCU’s cryptocurrency microsite. By leveraging these resources, your credit union can stay updated on the quickly evolving cryptocurrency sphere—and help defend your members, employees and organization from the threat of crypto scams.

Lou Grilli is a senior innovation strategist at PSCU, tasked with building and shaping a superior payment and member experience capability for PSCU, a CUESolutions provider, and its Owner credit unions. Grilli is currently focused on real-time payments and cryptocurrency. He participates on the U.S. Faster Payments Council and is named on a patent for the use of blockchain for loyalty programs. He holds an MBA from Duke University and a master’s degree in computer engineering from the University of South Florida.

Who’s NOT Talking About Crypto? Suddenly, a Lot of People

WASHINGTON–The chaos in the cryptocurrency market is being reflected in how often “crypto” is appearing in social media.

Most recently, FTX, one of the world’s biggest crypto exchanges, has filed for Chapter 11 bankruptcy protection in the U.S., with many of its investors suffering substantial losses and significant mystery around where the funds might be.

Against this backdrop, social media sentiment around ‘cryptocurrency’ has plunged by almost 70% and touched the year’s lowest in November 2022, according to the Social Media Analytics Platform of GlobalData.

“Reportedly, scams and frauds related to cryptocurrency have skyrocketed over the year across the top exchanges. Subsequently, social media discussions around ‘cryptocurrency’ also fell by 76% from January to November,” GlobalData reported.

“Social media net sentiments have fallen by 70% in 2022, from January to November, as the multi-trillion dollar crypto bubble, including top trading cryptos such as bitcoin and Ethereum, is imploding,” said Smitarani Tripathy, social media analyst at GlobalData. “Most of the Twitter influencers expect the crypto market to continue the downward trend and a few expect it to even collapse completely.”

What’s Being Said

Among some of the popular influencer opinions captured by the GlobalData’s Social Media Analytics Platform:

• “Also… cryptocurrencies are "going to die. There’s a limited amount of real money left… and as that money gets pulled out there will be less and less…speculative activity. No one’s coming in with fresh capital, and Ponzi schemes without new suckers disappear." –Ian Brown, visiting professor of CTS-FGV
• “A year ago #Bitcoin hit $69,000. One of the main reason for the spectacular rally was all the leverage that funded unprecedented #crypto advertising and speculative buying. The #FTX bankruptcy proves the entire rally was a fraud. It will never be repeated. Bitcoin mania is over.” –Peter Schiff, chief economist
• “A person I have known for more than ten years, who I consider trustworthy, is convinced the cryptocurrency economy will shortly experience a systemic risk. I don’t know anything concrete, but if I were exposed, I would be concerned.” –Paul Graham

12/04/2022 CUToday

"Amid concerns of a recession, it is encouraging to see this strong jobs report", said Steve Rick, chief economist at CUNA Mutual Group

263,000 Jobs Added in November, Dashing Expectations, While October Revised Sharply Higher

The labor market is becoming more balanced between supply and demand.
By Tim Smart

|Dec. 2, 2022, at 9:06 a.m.

Jobs Gains Dash Expectations

More

“Notable job gains occurred in leisure and hospitality, health care, and government,” the Labor Department report said. “Employment declined in retail trade and in transportation and warehousing.”

“Notable job gains occurred in leisure and hospitality, health care, and government,” the report said. “Employment declined in retail trade and in transportation and warehousing.”

Wages rose by 0.6% for the month, well above the 0.3% expected, and 5.1% on an annual basis.

“Amid concerns of a recession, it is encouraging to see this strong jobs report follow a more robust third-quarter GDP growth rate,” said Steve Rick, chief economist at CUNA Mutual Group. “We expect unemployment to remain below the natural rate of 4.5% this year. Still, we will continue to pay particular attention to the labor force participation rates, as they play a critical role in today’s inflation battle.”

Markets dived on the news, with futures on the Dow Jones Industrial Average dropping by 400 points before steadying somewhat.

The report will do little to change the Federal Reserve’s campaign of raising interest rates to curb inflation. The central bank is having some success as prices for some goods and overall inflation have receded somewhat in the past couple of months. But the job market has continued to show more resiliency than the Fed would like.

Fed Chairman Jerome Powell warned Wednesday policy makers are far from done and they would “stay the course,” although he acknowledged the Fed may reduce the amount of its next rate hike in two weeks, likely to 50 basis points instead of its recent 0.75 hikes.

The Fed is hoping for a “just right” ' scenario of “a softening pace of job growth that is still robust enough to help ward off recession,” said Elizabeth Crofoot, senior economist at labor market data firm Lightcast.

But most analysts do not foresee a massive wave of layoffs, even should a recession develop next year.

“While we expect the unemployment rate will rise in 2023 to a 4.5-5% range considering our base case of a global recession, the lack of labor supply growth over the next three years (0.5% vs 3% historical average) will dampen the magnitude of unemployment increases,” Vanguard’s economists and investment strategy group said Thursday.

While some brand-name tech stocks like Meta, Twitter, Amazon and others have issued layoff notices, there has not yet been a broad-based trend of layoffs across corporate America. On Wednesday, the government said there were 10.3 million jobs open as of the end of October. That equates to 1.7 jobs for every available worker, a level that is high by historical levels.

“Despite shaky numbers and headlines about a recession, the job market has remained durable overall,” says James Neave, head of data science at job search firm Adzuna.

Remote Workers Hesitant to Return to Office but Incentives May Help

Rather than schedule adjustments, one-third of remote workers prefer the prospect of private office space, and just as many want weekly happy hours.

By Alan Goforth | CUTimes

Many employees who began working remotely during the pandemic are in no hurry to return to the office. Nearly 7 in 10 would rather look for a new job than go back, a new survey from Clarify Capital finds

“Before the pandemic forced many Americans to switch from their workplaces to their homes, most office workers were used to getting dressed, commuting and buying lunch every weekday,” the survey report says. “But now that they’ve tasted a better life, they don’t want to go back to the way things were.”

Sixty-eight percent of respondents, including 79% of Gen Z remote workers, say they would look for a new job before returning to the office. Twenty-seven percent say they would rather negotiate a higher salary, and only 5% would be okay with returning without a salary negotiation.

Commuting to work is the biggest annoyance that 45% of remote workers surveyed say they are reluctant to return to. Nearly as many say they would be just as troubled by getting home later and waking up earlier. Business and information technology employees are most likely to name waking up earlier as the biggest annoyance of returning to the office. The commute is what most irritated employees in education, finance, insurance and health services.

The survey asked what incentives might lure workers back to the office. Many named flexible working hours (34%), and nearly as many were interested in a four-day workweek (30%). This change was especially attractive to people working in finance or insurance (34%).

Rather than schedule adjustments, one-third of remote workers prefer the prospect of private office space, and just as many want weekly happy hours. Health-service workers are most likely to choose the happy hour perk, while personal office space was the most common goal among people in education, business and IT.

“Workers are in no rush to get back to the in-person workplace, but there might be ways for managers to incentivize it,” the report concludes. “Many employees wouldn’t turn their noses up at a pay raise, but others might simply want more flexibility built into their schedules. Those who have gotten used to the peace and quiet of working from home might appreciate more personal space at work, while those who have felt isolated from their coworkers could use some scheduled time during work hours to socialize.

“However, these preferences vary, so managers may want to reach out to their employees and find out what they’ll need in order to return to the office.”

Market Increasingly Expecting Fed to Begin Slowing Rate Increases at December Meeting

 12/01/2022

WASHINGTON–The Federal Reserve is now expected to pull back on the pace of its aggressive rate hikes as soon as upcoming December meeting, according to its chairman.

Jerome Powell

“The time for moderating the pace of rate increases may come as soon as the December meeting,” Fed Chairman Jerome Powell said in remarks at the Hutchins Center on Fiscal and Monetary Policy. “Despite some promising developments, we have a long way to go.

The Fed has “not seen clear progress” on decades-high inflation plaguing the economy, Powell added.

The Federal Reserve Open Market Committee is next scheduled to meet Dec. 13-14.

Being Closely Watched

As CNN noted, investors have been closely watching for any indication that the Fed might slow or even pause its punishing schedule of rate hikes — the much-talked-about “pivot” that would “release the brakes the central bank slammed on the economy.”

“But Fed officials have ramped up their rhetoric in recent weeks to disseminate the message that there’s much more work to do, and will forge ahead with rate increases — albeit smaller — until the current bout of decades-high inflation shows signs of abating,” CNN added in its analysis.

‘Number-One Concern’

New York Federal Reserve President John Williams told the Economic Club of New York earlier this week that inflation remains the “number-one  economic concern across the globe,” citing underlying inflation in the service sector as “the most challenging” aspect of the battle. 

The Fed has increased its benchmark lending rate six times during 2022 as it has sought to temper inflation.

Miami Firefighters FCU Names a New CEO

12/01/2022 

MIAMI–Miami Firefighters Federal Credit Union has named a new president and CEO. The $159-million CU said it has selected Bryan S. Woodward to lead the organization.

Brian Woodward

Woodward most recently served as CEO of Hartford Firefighters FCU in Hartford Conn. and has been in credit unions for more than two decades, also serving as CLO, CIO, and COO.

“I am honored and privileged to be offered this opportunity to join MFFCU and continue serving the Firefighter community,” said Woodward. “Having lived in Miami 20 years ago, I knew someday I would be moving back to this great city and I am grateful that time has come. Joining a well-established credit union and sharing a vision with the BOD to see it grow into the future is an extremely motivating endeavor. Great things are yet to come.”

Woodward has a bachelor’s degree in business from Pace University in Pleasantville, N.Y.

Miami Firefighters has approximately 4,700 members.

The executive search was completed in partnership with Humanidei + O’Rourke.

Treasury Yields, Inverted Yield Curve Seen as Potentially Good Economic News

11/29/2022 CUToday

WASHINGTON–There may be some good economic news in U.S. Treasurys and the inverted yield curve.

Yields on longer-term U.S. Treasurys have fallen further below those on short-term bonds than at any time in decades, an indicator investors believe the Federal Reserve is close to winning its inflation battle regardless of the cost to economic activity, according to the Wall Street Journal.

As the Journal noted, yields on Treasurys largely reflect investors’ expectations for what short-term interest rates set by the Fed will average over the life of a bond.

But as the publication added, “The yield curve is more than just a little bent out of shape at the moment.”

Large Negative Gap

Last week, the yield on the 10-year U.S. Treasury note dropped to 0.78 percentage point below that of the two-year yield, the largest negative gap since late 1981, at the start of a recession that pushed unemployment even higher than it would later reach in the 2008 financial crisis, according to the Journal.

“Still, many investors and analysts see reasons to think that the current yield curve may presage waning inflation and a return to a more normal economy, rather than an approaching economic disaster,” the report stated.

Gene Tannuzzo, global head of fixed income at the asset-management firm Columbia Threadneedle told the Journal, “The market is saying: I think inflation is going to come down.”

Signs of Cooling Inflation

As CUToday.info has reported, inflation remains near a four-decade high, but the yield curve has become more deeply inverted in recent weeks due largely to good economic news, the Journal added.

In recent months there has been better-than-expected consumer price index numbers, indicating inflation may be slowing.

The Journal reported most investors still expect the central bank to raise the fed-funds rate to about 5% by early next year, up from its current level between 3.75% and 4%, before starting to cut rates later in 2023.

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Is your credit union ready to quickly and conveniently offer the lending product more borrowers need today?

It’s Time to Take HELOCs Off the Backburner 

By Scott Meier | CUTimes

 HELOC use is shifting. (Source: Shutterstock)

Mortgage refinancing had quite a moment in the last two years. Borrowers rushed to take advantage of the historically low-interest rates, resulting in $5.5 trillion in mortgage lending in 2020 and 2021, according to Black Knight’s January 2022 Mortgage Monitor.

Enter 2022 … and the winds have completely changed. As the Federal Reserve rapidly adjusts interest rates upward, the housing market reacted with a sharp and abrupt drop in mortgage refinances. Weekly mortgage applications are down 83% compared to one year ago, according to the Mortgage Bankers Association.

Homeowners have record levels of home equity and still have financial needs. Where a cash-out refinance might have made sense last year, interest rates likely make a home equity loan a better financial decision.

HELOCs: Then Versus Now

I recall from my days as a credit union lending manager that HELOCs were often a “backburner” product. Mortgages, car loans and personal loans were almost always the first-line solutions. There were a few reasons why HELOCs weren’t a go-to pick – but, those same reasons aren’t true today. I’m happy to count the ways things have become very different, thanks in large part to automation technology.

Then: HELOCs were cumbersome for lenders.

Now: Processing and underwriting can be done with the click of a button.

Then: The ROI of HELOCs was lower than other types of loans.

Now: Automation drives efficiency, reducing manual touches per file and making it easier to scale the volume without more effort.

Then: Borrowers often didn’t ask for HELOCs.

Now: Borrowers know they are sitting on peak home values – and are constantly reminded by the regular influx of home equity offers.

Then (and also now): HELOCs didn’t put resources in borrowers’ hands quickly, taking weeks to process and close.

Now: Borrowers can get funds in as little as a week, with automation enabling a clear-to-close in a matter of days.

Simply put, in the current rising interest rate environment, HELOCs should be a go-to, game-changing lending product.

Changing Perspective: From Backburner to High-Value Loan

HELOCs can be extended much more efficiently than in days past. In fact, you may be making them much harder than they need to be! Digitization, advanced technology, and updated processes can make HELOCs surprisingly fast and simple. Capitalizing on this trifecta benefits the borrower and institution – here’s why.

Technology is changing the “return-on-effort” equation. Many institutions treat HELOCs like mortgage loans, and as such, follow the same, or very similar, loan process. For the amount of effort, many lenders see the return as “unrewarding,” when they could be extending other forms of credit more quickly and easily.

Home equity loans are actually quite different. They aren’t subject to the same requirements as mortgage loans, which opens the door to implementing a more streamlined process. Credit unions today have access to automated workflows capable of intelligently executing home equity loans quickly, consistently, and accurately. With powerful technology working on their behalf, lenders’ perception of effort can quickly change from “unrewarding” to “almost too easy.”

HELOCs are a good choice for most borrowers today. Many homeowners are sitting on significant sums of home equity, but few want to refinance or take out a longer-term home equity loan at a higher interest rate. HELOCs are an important tool to have in your lending portfolio to help tap into those resource pools. HELOCs provide higher lines of credit at much lower rates than credit cards, which allows borrowers to only pay on what they use. And because it’s collateralized, it can be used more flexibly to address a broad array of needs.

Even those who need funds fast will find value in HELOCs. Thanks to the aforementioned automated workflow technology, a HELOC can be cleared to close in days, not weeks. With many institutions still requiring anywhere from 20 to 60 days, this is monumental progress. It’s a logical leap forward for community lenders that want to remain competitive against ultra-speedy, tech-first competitors, hungry to capture more of the financial services market.

HELOCs help diversify and mitigate risk in the portfolio. From my experience in credit union lending, I’ve seen how loan portfolios can become two-dimensional. Home and auto loans are the bread and butter of community lending institutions. However, the tandem rise of interest rates and prices of cars and homes have slowed demand significantly for these two cornerstone products.

Personal loans are another popular lending product, but they carry additional risks. Without collateral at stake, delinquency and default rates can creep higher. In addition to potential portfolio risk, collection efforts require valuable time and resources.

Home equity borrowers are more likely to repay their loans on time. This can provide lenders an appealing way to add diversification as the economy navigates the volatile market and meet the financial needs of their members and customers.

As the lending environment evolves, it’s important to change alongside your borrowers’ expectations and needs. Is your institution ready to quickly and conveniently offer the lending product more borrowers need today? With the assistance of technology that transforms, HELOCs are poised to be game changers in 2022.

 Scott Meier

Scott Meier is a former credit union lending manager who oversees western region sales for LenderClose, a West Des Moines, Iowa-based CUSO that automates home equity lending processes at scale using 

Fees are still being charged by most banks and are “not going away anytime soon,” according to a new analysis.

NEW YORK – While the elimination or reduction of overdraft and non-sufficient funds (NSF) fees by some banks have been getting headlines, the fees are still being charged by most banks and are “not going away anytime soon,” according to a new analysis.

But one product may be in the process of a “vanishing act”: free checking, the report adds.

Bankrate.com’s annual Checking Account and ATM Fee Study has found overdraft fees are still charged by 96% of accounts surveyed and NSF fees are still charged by 87% of accounts surveyed.

In addition, the average combined ATM fees are up to a three-year high, with the surcharge hitting a record high of $3.14, up 1.9% from last year, according to Bankrate.com, which has conducted the study and its survey of non-interest and interest accounts and their associated fees for over 20 years.

Overdraft and NSF Fees

According to Bankrate.com, the average overdraft fee is $29.80, down 11% from last year’s record high of $33.58, and now is at the lowest level since 2009. The average non-sufficient funds (NSF) fee is down 21% to $26.58 from last year’s record of $33.58 and is at the lowest level since $25.81 in 2004.

“These decreases do signify a turnaround from previous increases nearly every year, but overdraft and NSF fees are still charged by most banks (96% and 87% respectively),” Bankrate.com said.
The survey found the most common fee for overdraft fees remains at $35, the same as the last 13 years. The range of fees on both NSF and overdraft fees is now $0 - $38, down notably from the $20 - $45 range that had prevailed in 2020 and 2021.

‘Reversal’ Takes Place

“In a reversal from the past year, the number of declining NSF fees outnumbered increases by a 12-to-1 margin, while the number of declining overdraft fees outnumbered increases by a 5-to-1 margin,” Bankrate.com said. “This illustrates a significant turnaround from 2021, when increases of the combined fees outnumbered decreases by a 7-to-1 margin, down from a 10-to-1 margin in 2020.” 

According to Bankrate.com, the decline in overdraft and NSF fees breaks a string of three consecutive increases and records in 21 of the preceding 23 years. Further, 13% of accounts have eliminated the NSF fee and 4% have eliminated the overdraft fee. 
Overdraft fees vary by metro area, with Pittsburgh having the highest average overdraft fee ($35.50), while Miami’s fees are the lowest ($21.05).

Interest and Non-Interest Checking Accounts
Meanwhile, despite the fastest pace of Federal Reserve interest rate hikes in decades, the average yield on interest checking accounts remains at last year’s record low of 0.03%, Bankrate.com noted.

“While the average monthly fee for interest checking accounts is $16.19, down from last year’s record of $16.35, it still marks the second highest fee ever tallied,” the report states. “The average balance required to avoid the monthly fee is $9,658, down 2.4% from last year’s record of $9,897, but this year’s average is still 28% above 2020’s $7,550, a record at that time.”

The survey found 75% of interest checking accounts require some form of balance requirement, either in the checking account or across multiple accounts to avoid the fee—15% of interest checking accounts will waive the fee based solely on direct deposit, up from 12% last year, but still lower than 21% in 2020. Further, just 7% of interest checking accounts are free, unchanged from last year, Bankrate.com said.

“By contrast, nearly half (46%) of non-interest checking accounts are free, meaning they do not have a monthly fee or balance requirement. This is down from 48% last year, but is still the 3rd highest level in the past 12 years,” according to the survey. “For non-interest checking accounts, the average monthly fee is $5.44, up 7% from $5.08 last year, and the highest since 2019. The average balance requirement to avoid a fee is $539.04, up 6.4% from $506.62 last year.”

Additional Fee Waivers
The survey found that in addition to the high percentage of free accounts, 53% of accounts will waive the monthly fee based on either direct deposit, account balance, transaction activity or a combination of direct deposit and transaction activity. Ninety-nine percent of non-interest checking accounts are free or can become free, with 44% of accounts waiving the monthly fee based solely on direct deposit, making it the predominant fee waiver.
“Will a vanishing act on free checking accounts be the eventual fallout of declining overdraft fee revenue?” asked Greg McBride, chief financial analyst with Bankrate. “There is not much evidence of that to this point, but it does bear watching.”

ATM Fees

The average ATM surcharge hit a record high of $3.14, up 1.9% from $3.08, Bankrate.com said.

“This is the 21st time in the past 24 years that the average surcharge has set a record high, with 2004, 2020, and 2021 the exceptions. However, every ATM-owning bank surveyed will charge non-customers for withdrawals.”
When it comes to banks charging their own customers for going outside the network, the most common policy is not charging a fee at all, according to the survey.

The company found a record high 40.5% of banks and accounts surveyed are offering free out-of-network withdrawals, consistent with increases from 39.6%, 35.2%, and 32.3% the last 3 years. The average fee charged by banks when their own customer goes outside the network was up minimally to $1.52 from last year’s 10-year low of $1.51. This is the second lowest average since 2011, and is 12% below the record of $1.72 in 2017, Bankrate.com said.

“Combining the two fees, the average total cost of an out-of-network ATM withdrawal is $4.66, up 1.5% from 2021, and the highest since 2019. ATM fees vary by metro area, with Atlanta having the highest out-of-network ATM fee of the 25 major metro areas in the study ($5.38), while Los Angeles has the lowest ($4.21),” according to Bankrate.