Not LA or NY: These cities have the highest ATM withdrawal fees
Here’s where you should be careful when taking out money from an ATM.
Americans are paying more than ever to get their own money out of the bank, at least if they use the wrong machine. A new survey from Bankrate shows that the average cost of pulling cash from an ATM has shot upwards and now sits at $4.86, a record number that tops last year’s average of $4.77.
The total fee comes from two sources: the operator of the ATM typically charges around $3.22, while the customer’s own bank adds another $1.64. However, in many cities, the combined charge is now over the $5 mark.
Some places are far worse than others. In Atlanta, the average cost of using an out-of-network machine is a hefty $5.37. Phoenix and San Diego aren’t much cheaper, averaging about $5.35 and $5.31 respectively. On the lower end, Boston ($4.37) and Seattle ($4.42) still sting your wallet, but not as badly as the aforementioned cities.
The reason behind these hugely inflated prices is simple: greed. ATM fees aren’t capped by regulators the way overdraft fees now are, meaning banks have plenty of leeway to rip you off even more. Added to that is the fact that people are leaning away from cash and more towards cards, apps, and digital wallets, meaning banks collect less revenue from traditional cash transactions. They’re making up the difference by making you pay more.
Also, fewer people are using machines regularly, which means it is less profitable for banks to maintain them. As a result of having less machines on street corners, more consumers at the mercy of third-party operators when they need quick cash, who generally charge extortionate amounts.
The simplest way to avoid these frankly shocking fees in today’s money-tight world is to stick to your own bank’s machines, with many banking apps offering fee-free locations. Another option is to take out cash when you’re in the checkout line, as many grocery and retail stores allow “cash back”.
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In today’s world, with rising prices across the board, no thanks to Donald Trump’s tariff tactics, a simple five dollars here or there can hurt a lot more than it used to. Don’t let the banks take advantage of you, and keep in mind the hefty costs of taking money out of the machine. Still, remember to say thank you to the ATM when you do take cash out.
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