9 Best Banks To Avoid ATM Fees

Terence Loose
Kondoros Eva Katalin / Getty Images
Kondoros Eva Katalin / Getty Images

Banks have a lot of fees. A lot. And one of the most aggravating has to be the automated teller machine fees some banks and ATM operators charge. After all, who wants to pay a fee to withdraw their own money? Fortunately, if you do your homework–and read some fine print–you can find the best banks to avoid ATM fees.

What Are Common ATM Fees?

ATM fees can take you by surprise if you don’t understand what they are and when they are charged. Here’s a way to simplify it. These are the three most common types of ATM fees to watch for, according to CNBC:

  • Fees for using out-of-network ATMs: This fee is charged by your bank if you use an ATM that is not in their network. This could mean you can only use ATMs owned and operated by your bank. But your bank could also belong to a network of third-party-operated ATMs, giving you free access to more ATMs. Your bank should make this clear on their website

  • ATM operator fees: If you use an ATM that is not in your bank’s network, you might get charged a fee from the owner of the ATM. This fee will be in addition to any fee that your own bank charges you for going out-of-network.

  • Foreign transaction ATM fees: If you are traveling and use an ATM in another country, your bank might charge you a currency conversion fee for using an international ATM.

How Much Are ATM Fees?

While you likely won’t see a $20 ATM fee, the bad news is that ATM fees can reach wallet-busting amounts and are generally determined by the market, according to the U.S. Office of the Comptroller of the Currency. That can work in your favor, of course, since competition could keep prices down. But since banks haven’t exactly inspired trust in recent years, you might not love the fact that they have a lot of leeway.

In fact, according to the Comptroller of the Currency, “Banks are advised to make the decision on the type, amount, and method of calculation [for fees] based on sound banking judgment and safe and sound banking principles.”

That sort of friendly guidance has resulted emboldening some banks to charge eye-popping fees for out-of-network ATMs. For instance, Chase’s Total Checking account guide lists a $3 charge for using a non-Chase ATM in the U.S., Puerto Rico or the U.S. Virgin Islands. That fee increases to $5 for using a non-Chase ATM anywhere else in the world. Many other banks have similar fees. And this fee is on top of any fee that the ATM operator might charge you.

How Do You Know if You Will Be Charged an ATM Fee?

Fortunately, although it might require a little fine print reading, your bank is required by law to disclose any fees, including ATM fees, before you open an account, according to the Comptroller of the Currency. In addition, they state, if an ATM machine you are using will charge a fee for your transaction, you must be notified before you incur the charge. So you should have fair warning.

The best approach to finding a fee-free ATM is to make sure you understand the ATM fee schedule, along with all other fees you’ll be charged, before opening an account. If you find it too high for the banking services or type of account you are opening, the Comptroller of the Currency advises shopping around for a better deal. After all, with more than 4,000 FDIC-insured banks, the United States is the king of banks, with more banks than any other country. So you’re bound to find one that fits your needs.

How Can You Avoid ATM Fees?

  • Use ATMs in your bank’s network. This is the golden rule when it comes to avoiding ATM fees. Many banks will have an ATM finder on their app or website to help you find an in-network ATM. To enhance your ability to avoid ATM fees, when you sign up for an account, make sure you verify that the bank or credit union has an ATM near you.

  • Select a bank that reimburses you for ATM fees. Many banks reimburse you for all or a certain amount of out-of-network fees charged by third party ATM owners each month. If you use ATMs in many different or unexpected places, look for a bank that allows for a certain number of out-of-network ATM fee reimbursements.

  • Get cash back with a debit card. Often, there is no fee to get cash back when using your debit card for purchases. This can help you avoid ATM transactions. Before you do this, however, make sure you understand the daily debit card transaction limit for your account.

  • Use an app. It’s never been easier to avoid cash altogether. Whether it’s account-linked money transfer apps like Zelle or independent apps such as PayPal, Venmo and others, you often have the choice of a fee-free, cash-free way to pay a person or business.

  • Minimize the fee percentage: If you must use an out-of-network ATM, one strategy is to withdraw the maximum amount allowed and that you will need in the foreseeable future. This way, the flat rate ATM fee becomes less, as a percentage, of the amount and allows you to incur the fee only once.

9 Banks That Don’t Charge ATM Fees

Believe it or not, some banks are not greedy when it comes to ATM fees. Here are nine of the best banks to avoid ATM fees.

Fidelity

While not a traditional bank, Fidelity’s Cash Management and Youth accounts provide checking account features, along with some of the best ATM fee policies.

  • Access to more than 1 million ATMs worldwide.

  • Reimbursement of all ATM fees, including third-party operator fees.

Charles Schwab Bank

Another financial institution that most people think of as an investment bank, Charles Schwab does offer checking accounts. And like its rival Fidelity, they offer great perks when it comes to ATM fees on their High Yield Investor Checking.

  • Unlimited ATM fee reimbursements–applies only to cash withdrawals with the Schwab Bank Visa Platinum Debit Card

EverBank

With a low $25 limit for opening an account, EverBank has a favorable fee structure when it comes to ATM usage.

  • No ATM fee charged by EverBank for in- or out-of-network ATMs.

  • Reimbursement of up to $15 a month for ATM fees other U.S. ATM operators charge you, if your account has a balance under $5,000.

  • Unlimited ATM fee reimbursement if your minimum average daily balance is at least $5,000.

Ally Bank

With no brick-and-mortar branches available to customers, Ally Bank might not fit every need. But if you’re comfortable doing all your banking virtually, Ally has an impressive ATM system.

  • Free use of more than 43,000 Allpoint ATMs nationwide.

  • Up to $10 reimbursement of fees charged at out-of-network ATMs.

  • No fee for cash back at retailers who offer it.

Axos Bank

Axos Bank is a digital bank that offers primarily online banking. However, the bank also offers a wide-ranging network of ATMs and some reimbursement perks.

  • Free access to more than 91,000 ATMs across the U.S.

  • Fee reimbursement of out-of-network ATMs for certain account types.

Alliant Credit Union

If you prefer a credit union, Alliant is a good choice if no or low ATM fees are on your wish list. The financial institution has a robust network and favorable reimbursement policy.

  • Use of more than 80,000 fee-free ATMs nationwide.

  • Up to $20 reimbursement of fees imposed by out-of-network U.S. and international ATMs.

LendingClub Bank

With a large network of ATMs and a favorable fee reimbursement policy, LendingClub Bank’s Rewards Checking is an attractive option for many.

  • Fee-free access to more than 37,000 MoneyPass or SUM ATMs.

  • Unlimited reimbursement of fees charged by third-party operators of out-of-network ATMs.

Citi®

If you travel overseas often, Citi’s Citigold® account might suit you due to its favorable worldwide ATM access.

  • Fee-free access to both Citi ATMs in the U.S. and 20 foreign countries.

  • U.S. network of more than 70,000 ATMs.

  • All non-Citi ATM fees can be waived.

First Internet Bank

Whether this was the internet’s first bank or not, we don’t know, but First Internet Bank does have a friendly ATM policy for its Interest Checking, Money Market Savings, and Regular Savings accounts.

  • Up to $10 per cycle fee reimbursement for fees charged by out-of-network ATM operators.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

This article originally appeared on GOBankingRates.com: 9 Best Banks To Avoid ATM Fees

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