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We Like Banks That Don’t Charge ATM Fees — Ever
When banks advertise themselves as fee-free, you’ve got to question how truly fee-free they really are. For example, major banks that boast no monthly maintenance fees can still get you with overdraft fees, foreign transaction fees and even paper check fees.
ATM fees are a different breed. Your own personal bank isn’t benefiting from the ATM surcharges you pay when using out-of-network ATMs (the ATM operator is), but the best banks help you avoid ATM fees by offering vast networks of fee-free ATMs or, even better, reimbursements for ATM fees.
If you frequently use an ATM, whether to deposit cash or checks for an account with an online bank or to withdraw money for cash-only purchases, consider switching to a financial institution that helps you avoid ATM fees most easily.
In researching banks that offer ATM reimbursements or vast networks of in-network ATMs, we built out a list of the 8 best banks for avoiding ATM surcharges. Consider opening a checking account with one of these banks or credit unions:
10 Best Banks for No ATM Fees
We’ve ordered these banks starting with our top choice for avoiding ATM fees, but remember that bank ATM fees are only part of the picture. Banks charge a lot of other fees, some of which can be hidden. Choose a financial institution from this list that not only meets your ATM needs but also any other banking needs.
If you visit an ATM for cash withdrawals or deposits multiple times a month, you should absolutely find a bank or credit union that allows you to do so at no cost to you. When scouring the fine print of potential financial institutions, look for one that offers unlimited out-of-network ATM fee reimbursements.
When the reimbursements are unlimited, you never have to worry about locating an ATM that is in your network. Simply locate the nearest ATM and, regardless of the advertised fee, rest assured your bank will reimburse you for whatever the machine charges.
If you travel outside the country and plan to use an ATM, you should specifically find a bank that offers global ATM surcharge reimbursements. This is especially important because ATM operators typically charge a higher international transaction fee. However, banks that simply offer unlimited nationwide rebates for bank ATM fees should suffice for most average customers.
Right now, only a handful of banks and credit unions offer unlimited reimbursement, and those that do might not have all the other offerings you’re looking for in a bank (like a competitive checking APY, a sign-up bonus, a leading mobile app or no overdraft fees). In that case, the next best thing is to look for banks that have a wide network of ATMs, specifically those that belong to interbank ATM networks like Allpoint, MoneyPass or STAR.
Some banks offer a hybrid scenario: large ATM networks plus some amount of ATM fee reimbursement (like one a month or up to $10 of fees reimbursed). Many of the financial institutions that make up our list above of the best banks for ATM fees offer some kind of hybrid solution.
Banks charge a lot of fees, whether it’s a monthly maintenance fee, foreign transaction fee or overdraft fee (but hey, overdraft fees finally seem to be disappearing), but one thing your own bank has no control over is out-of-network ATM fees. Those are managed instead by an ATM owner.
So how can you avoid paying an out-of-network ATM fee? We’ve got a few solutions:
Your financial institution offers in-network ATMs that are free to use. Some banks just offer more than others.
Not sure where your bank’s own in-network ATMs are located? You should be able to launch your bank’s mobile app to find nearby locations. It might mean walking or driving a little farther out of your way to use your own bank’s ATM; determine if this added time is worth saving you the out-of-network ATM operator fee you’ll otherwise pay.
If you are unable to use your mobile app because of poor service, check the back of your ATM card. Many banks print the name of their network on the back of an ATM card. This can’t help you locate nearby ATMs but can at least show you which ATMs are in your network.
Many grocery stores and some gas stations offer cash back when you make a purchase with your debit card. Instead of spending $3 to $4 at an ATM just to withdraw cash, spend a buck on a pack of gum or buy something off your grocery list and select cash back at checkout. There should not be a fee for this.
If you withdraw cash in small amounts every week or so, consider taking out a larger sum once to reduce the amount of ATM fees you are paying. For example, instead of taking $60 out every week and paying $4 per ATM withdrawal, take $240 out at the start of every month and pay the $4 fee once. You’ll earn a little less interest that month for having less in the account, but it won’t come anywhere close to the money saved for reducing the ATM fees.
The days of “cash is king” are numbered. Since the start of the COVID-19 pandemic, many establishments have even stopped accepting cash. If your bank account offers a debit card or if you have a rewards credit card or digital wallet, consider making your purchases with those instead of cash.
Finally, and most importantly, if you regularly use an ATM and are tired of paying high ATM fees, switch to a bank that reimburses you or offers you more in-network ATM options. Frequent international travelers should prioritize banks that reimburse foreign ATM fees.
Timothy Moore covers banking and investing for The Penny Hoarder from his home base in Cincinnati. He has worked in editing and graphic design for a marketing agency, a global research firm and a major print publication. He covers a variety of other topics, including insurance, taxes, retirement and budgeting and has worked in the field since 2012.
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