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Dive Brief:
- The average total cost for out-of-network ATM withdrawals has climbed to a new high of $4.73, according to a survey from personal finance website Bankrate.
- That total is comprised of the surcharge levied by ATM owners, which reached a new average of $3.15, up from $3.14 the year prior, and the average fee of $1.58 charged by a customer’s bank for using an out-of-network ATM. The $3.15 charged by ATM owners is the 22nd highest average fee in the past 25 years.
- Compared to last year, the average bank overdraft fee declined 11%, to $26.61 this year. The average non-sufficient funds fee dropped 25% since last year, to a record low $19.94, according to Bankrate.
Dive Insight:
As banks charge higher fees for out-of-network ATM withdrawals, financial institutions are reducing their ATM availability in the U.S. The number of ATMs in the U.S. last year fell 4% from the number in 2019, to 451,500, according to a Euromonitor International report.
The share of consumer transactions made with cash or checks also declined, dropping from 28% in 2017 to 14% in 2022, Kendrick Sands, global head of consumer finance research at the consulting firm Euromonitor International, said earlier this year.
Still, demand for cash remains stable, and more than 90% of U.S. consumers don’t expect to stop using cash in the future, according to the Federal Reserve’s most recent Diary of Consumer Payment Choice published in May.
“ATM fees are biting harder than ever as the cost of out-of-network withdrawals hits a new record high,” Bankrate Chief Financial Analyst Greg McBride said in a statement. “But with less need for cash and expansive ATM networks that make it easier than ever to stay within network, the fees are easily avoidable and need not be a frequent drain on your bank account.”
The average monthly fee on interest checking accounts fell 5%, to $15.33 this year. The minimum balance requirement for interest checking accounts is an average of $8,684 this year, Bankrate said.
Bankrate’s report also revealed the vast majority of non-interest accounts are either completely free (45%) or are free with eligible direct deposit (42%). However, free or free with eligible deposit checking accounts dipped slightly from 90% last year to 87% this year.
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