It’s becoming more and more expensive to withdraw money from your checking or savings account if you’re using an out-of-network ATM. In fact, average total ATM fees continue to rise this year to $4.77, according to Bankrate’s 2024 Checking Account and ATM Fees Study. That’s up from $4.73 last year and the highest annual amount since Bankrate began tracking ATM fees in 1998.
“If you make a withdrawal at an out-of-network ATM, be prepared to pay a fee — and it’s higher than ever,” says Greg McBride, CFA, chief financial analyst at Bankrate. “Fees are rising again, and you’ll typically pay two fees — one to the ATM owner and one to your bank. Limit your cash withdrawals to in-network ATMs or use your debit card to get cash back. Make sure your bank participates in a nationwide network of free-to-use ATMs,” adds McBride.
Other bank fees that are rising include overdraft fees, with the average rising to $27.08 this year from $26.61 in 2023. The increase comes after two consecutive years of declines in average overdraft fees after peaking at $33.58 in 2021. Overdraft fees are still charged on 94% of accounts, according to Bankrate’s research, and can be as high as $38.
Meanwhile, monthly fees on interest-bearing checking accounts are becoming harder to avoid, with the average minimum balance needed to waive the fees rising to a record high of $10,210, according to a Bankrate survey.
As with last year, a particularly bright spot in this year’s survey data is how easy it is to get a free checking account: Nearly half (47%) of interest-free accounts don’t charge a monthly service fee, and another 46% allow customers to avoid fees by setting up recurring direct deposit.
Key insights from Bankrate’s 2024 Checking Account and ATM Fees Study
- ATM fees are at an all-time high. The average total cost of using an out-of-network ATM is currently $4.77, which includes an average surcharge of $3.19 charged by the bank that operates the ATM and an average fee of $1.58 charged by the bank itself for using an out-of-network ATM.
- Overdraft fees are rising again. After declining for the past two years, the average overdraft fee rose 1.7% from last year to $27.08 in 2024. Meanwhile, the average non-sufficient balance fee (NSF) was $17.72, down 11% from the previous year.
- For interest-bearing checking accounts, the average minimum balance required to avoid fees has increased significantly. The average monthly fee for an interest-bearing checking account is now $15.45, and the average minimum balance to avoid a monthly fee is $10,210, up 18 percent from last year.
- It’s easy to get a free checking account. Nearly half (47%) of non-interest checking accounts don’t charge fees, and an additional 46% waive the fee for people who set up recurring direct deposit.
- Atlanta is the metro area with the highest ATM fees. Among metro areas surveyed by Bankrate, Atlanta had the highest average out-of-network ATM fee at $5.33. Boston had the lowest average total fees at $4.16.
ATM fees: Total fees hit all-time high
When consumers use an ATM that is outside their bank’s network, they can incur two fees: The ATM owner may impose a surcharge, or the consumer’s bank may charge an out-of-network ATM fee.
The surcharge continues to rise. By 2024 (and every year since 2019), 100% of banks surveyed by Bankrate said they will charge non-customers a fee for ATM use. This year, the average fee rose to a record high of $3.19, with increases in fees outweighing decreases by a factor of 4-to-1.
Average out-of-network fees have remained stable. Meanwhile, the average out-of-network ATM fee remains unchanged from last year at $1.58, and is charged in 61% of cases, Bankrate found. Among banks that charge this fee, the most common amount is $3, but 39% of banks surveyed have at least one account that offers free out-of-network withdrawals.
Total ATM fees rise to new record: Combined, the average total cost of using an out-of-network ATM is $4.77, an increase for the fourth consecutive year and the highest since Bankrate began tracking it in 1998. This total fee is made up of the average fee from one’s own bank and the average surcharge charged by the bank that owns the ATM.
Average ATM fees are highest in Atlanta and lowest in Boston
Of the metro areas surveyed by Bankrate, Atlanta has the highest average total ATM fees in 2024, where customers will pay an average of $5.33. Atlanta also has the highest average total fees in 2023 and 2022, at $5.33 and $5.38, respectively.
Meanwhile, the San Diego and Phoenix metropolitan areas tied for second place with an average combined ATM fee of $5.22 in 2024.
Of the 25 metro areas surveyed by Bankrate, the lowest average total ATM fees were in Boston ($4.16), Seattle ($4.34), and Philadelphia ($4.42).
| Rank | Metro Area | Average Total ATM Fees |
|---|---|---|
| Source: Bankrate’s 2024 Checking Account and ATM Fees Study | ||
| 1 | Atlanta | $5.33 |
| 2 (tie) | San Diego | $5.22 |
| 2 (tie) | Phoenix | $5.22 |
| 4 | Detroit | $5.18 |
| 5 | Cleveland | $5.10 |
| 6 | Pittsburgh | $4.98 |
| 7 | Tampa | $4.97 |
| 8 | Milwaukee | $4.88 |
| 9 | Houston | $4.86 |
| 10 | San Francisco | $4.83 |
| 11 (tie) | Chicago | $4.81 |
| 11 (tie) | Cincinnati | $4.81 |
| 13 | Miami | $4.80 |
| 14 | St. Louis | $4.76 |
| 15 | Minneapolis | $4.75 |
| 16 | Denver | $4.74 |
| 17 | Dallas | $4.69 |
| 18 | Washington DC | $4.62 |
| 19 | Los Angeles | $4.56 |
| 20 | Kansas City | $4.55 |
| twenty one | Baltimore | $4.52 |
| twenty two | new york | $4.47 |
| twenty three | Philadelphia | $4.42 |
| twenty four | Seattle | $4.34 |
| twenty five | Boston | $4.16 |
Overdraft fees rise again while NSF fees continue to fall
When a bank customer tries to make a transaction but does not have enough funds to complete the transaction, the bank may charge one of two fees: the bank may charge an overdraft fee when it lends the customer the funds needed for the transaction, or the bank may charge an NSF fee when it declines to make a payment or cash a check that would cause the account to go into a negative balance.
Overdraft fees have increased since last year: After declining for two consecutive years, the average overdraft fee is set to rise to $27.08 in 2024, up 1.7% from $26.61 in 2023. The increase also comes after average overdraft fees hit their lowest level in nearly two decades last year. Overdraft fee increases outpaced fee reductions or fee eliminations at banks surveyed in 2024. Nearly all accounts (94%) charge overdraft fees, according to Bankrate’s survey.
The Consumer Financial Protection Bureau (CFPB) reports that banks appear to have halted their plans to dramatically reduce overdraft fees. Meanwhile, the bureau is proposing a rule to lower overdraft fees for banks with more than $10 billion in assets. The rule would allow about 175 banks and credit unions to continue offering overdraft services, but they could only charge fees between $3 and $14, or decide what fee they would break even on.
NSF fees have fallen for three consecutive years. The average NSF fee for 2024 will fall to $17.72, the lowest in the history of Bankrate’s survey and down 11 percent from last year’s $19.94. More than a third of accounts (36 percent) do not charge an NSF fee, up from 30 percent last year. In fact, decreases in NSF fees outweigh increases by two to one.
Most banks still charge overdraft fees or NSF fees. Only 6 percent of banks charge neither NSF fees nor overdraft fees. However, of the banks that charge these fees, 66 percent offer some degree of discretion before charging the full fee, up from 62 percent last year. The amount of discretion banks give varies widely, allowing customers to request anywhere from $1 to $100 of overdraft privileges before being charged the full fee.
Most banks don’t offer early direct deposit. Early direct deposit can be convenient if finances are tight or you want to avoid overdrafts, but only 21 percent of banks surveyed said they offer direct deposit two days early (this is the first year that this question has been included in Bankrate’s survey).
Interest-bearing current accounts: Minimum balance to avoid fees soars
Interest-bearing checking accounts often come with monthly fees, with the average fee this year at $15.45, up from $15.33 in 2023. Many accounts waive the monthly fee if you maintain a set minimum balance, but these requirements can be tough, and the average is now at an all-time high of $10,210, according to Bankrate research.
The average monthly fee this year represents an 18 percent increase from last year’s average of $8,684 and a 35 percent increase from the average of $7,550 in 2020. Balance requirements to avoid fees on interest-bearing checking accounts have increased by an average annual rate of 7.5 percent since 1998, when Bankrate began tracking the fees.
In terms of interest rates, the average yield on an interest-bearing current account will be 0.06% per year in 2024, up only slightly from last year’s 0.05% per year.
No-interest checking accounts: Most accounts don’t charge fees or have fees that are easy to avoid.
Nearly half (47%) of non-interest-bearing accounts are free, according to a Bankrate study. A free checking account is one that doesn’t charge a monthly service fee, regardless of the balance.
This year’s figure is up slightly from 45% in 2023.
Currently, another 46 percent of interest-free accounts waive the fee if you simply make direct deposits, meaning that 93 percent of interest-free accounts Bankrate looked at are free or can be made free just by making regular direct deposits into the account.
The average monthly fee for a non-interest-bearing checking account will be $5.47 in 2024, up from $5.31 last year and the highest average since 2019.
Tips to avoid bank fees
Fees like ATM fees and monthly service charges can add up quickly and eat into your balance and any interest you may have earned. With a little planning and choosing the right bank, you may be able to avoid paying these bank fees.
ATM Fees
While electronic payments may be the most convenient option these days, there are times when you need cash – for example, some people prefer to use cash when giving gifts or splitting restaurant bills with friends.
Here’s how to withdraw cash without paying fees:
- Only use ATMs within your bank’s network. If you use ATMs a lot, you might choose a large bank that operates a large number of ATMs, or you might choose a bank that is part of a large ATM network such as Allpoint or MoneyPass.
- Choose a bank that will refund your ATM fees. Financial institutions that offer accounts that reimburse all or part of ATM fees include:
- Ask for cash when making purchases with your debit card. Most retailers allow you to get cash back from your checking account when you use your debit card at the register, usually without any fees, but withdrawal limits are often lower than ATM limits.
Monthly maintenance fee
It’s a good idea to choose an account that doesn’t charge monthly service fees, or find one where you can easily avoid such fees.
- Find a free checking account. These accounts don’t charge monthly maintenance fees, regardless of the balance, and nearly half of the checking accounts Bankrate reviewed are free to use, with no strings attached.
- Choose an account that makes it easier to avoid fees. Many no-interest checking accounts that charge fees will waive the fee for customers who set up regular direct deposits into their accounts.
You can avoid balance requirements and monthly fees by looking for free checking accounts. Look for free accounts — accounts that are already free or that can easily become free based on your banking habits, like regular direct deposits.
— Greg McBride, CFA, Chief Financial Analyst, Bankrate
Instead of parking your excess cash in a low-yield checking account just to avoid paying monthly fees, McBride recommends putting it in a high-yield, online-only savings account.
Overdraft and NSF Fees
With overdraft fees on the rise again, it helps to know your bank’s policies on overdrafting your account, including any associated fees. Here’s how to avoid those fees:
- Find an account that doesn’t charge overdraft fees or NSF fees. With such an account, the bank will decline any transaction that would exceed your account balance, which means you don’t have to worry about paying back the bank or paying penalties, or you could face difficulties and embarrassment if your purchase is declined.
- Set up overdraft protection. Many banks offer overdraft protection, which helps prevent your account from being overdrafted by automatically transferring funds from your savings account, credit card, or line of credit. This service is often free, but be aware that some banks charge a fee for the transfer.
- Check your account balance frequently. Knowing how much you have in your checking account can help you make an informed decision before reaching for your debit card for a nonessential purchase. Setting up low balance alerts in your banking app will do that automatically.
