ATM fees seem small in the moment. Two dollars here, three dollars there. But if you’re hitting out-of-network ATMs twice a week, that’s $200 to $300 a year going straight to banks for the privilege of touching your own cash. There are straightforward ways to stop the bleeding.
How ATM fees actually work
Most people don’t realize they’re getting charged twice. Your own bank charges a fee for using a machine that isn’t theirs, usually $2 to $3.50. Then the ATM operator charges their own fee, often another $2.50 to $3.50. A single withdrawal can cost $5 to $7 total.
If you withdraw cash four times a month from out-of-network ATMs, that’s $20 to $28 per month, or $240 to $336 per year. On a $1,000 balance, you’re effectively paying a 24% to 34% annual fee on your money just to access it.
Banks that reimburse ATM fees
Several online banks refund ATM charges because they don’t have their own machines. Instead of building a network, they let you use any ATM and eat the cost.
- Schwab Bank: unlimited worldwide ATM fee reimbursements. No cap. This is the best deal going for frequent ATM users or travelers.
- Ally Bank: reimburses up to $10 per statement cycle at ATMs nationwide. That covers roughly three to four withdrawals.
- Axos Bank: reimburses up to $8 per month domestically.
- Betterment Checking: reimburses 100% of ATM fees worldwide with no monthly limit.
The reimbursement typically shows up as a credit within one to two business days. You still see the charge hit your account, but the bank reverses it shortly after.
Use your bank’s ATM network
If you stick with a traditional bank, learn where their free ATMs are. Most big banks have apps that show nearby ATMs on a map. Chase has about 16,000 ATMs. Bank of America has around 16,000. Wells Fargo has roughly 12,000. If you bank with one of these, there’s usually one within a few minutes of wherever you are in a metro area.
Credit unions often participate in shared ATM networks. The CO-OP Network has over 30,000 surcharge-free ATMs across the country. If your credit union is in the network, that’s more free ATMs than any single bank offers.
Get cash back at the register
This one is obvious but underused. When you pay with your debit card at a grocery store, pharmacy, or big-box retailer, ask for cash back. No ATM fee, no transaction fee, and you’re already there buying something.
Most stores cap cash back at $40 to $100 per transaction. Walmart allows up to $100. Some grocery stores go up to $200. It’s free at the vast majority of retailers.
Reduce how much cash you actually need
The simplest way to avoid ATM fees is to need ATMs less often. Most places accept cards or mobile payments now. The holdouts are getting fewer every year.
Situations where you still need cash:
- Tipping in cash-heavy industries (valet, hair salons in some areas)
- Farmers markets and small vendors
- Splitting costs in groups when not everyone has Venmo or Zelle
- Laundromats and some parking meters
If you can estimate how much cash you need per week, withdraw it once from a free ATM instead of making multiple small withdrawals from whatever machine is nearby.
Watch for surcharge-free ATM networks
Beyond your own bank’s ATMs, several networks let you withdraw without surcharges:
- Allpoint: over 55,000 ATMs, usually inside retail stores like CVS, Walgreens, and Target. Many online banks and credit unions participate.
- MoneyPass: around 40,000 ATMs, often inside 7-Eleven stores and other retailers.
- CO-OP Network: 30,000+ ATMs focused on credit union members.
Check your bank’s website or app to see which networks they belong to. You might have free access to thousands of ATMs you didn’t know about.
What about international ATM fees
Withdrawing cash abroad adds another layer. Besides the standard fees, you’ll usually get hit with a foreign transaction fee of 1% to 3% of the withdrawal amount. On a $300 withdrawal, that’s $3 to $9 on top of the regular ATM surcharges.
If you travel, Schwab’s checking account is hard to beat. No foreign transaction fees, unlimited ATM reimbursements worldwide, and the exchange rate is competitive. Capital One 360 checking also charges no foreign transaction fees, though ATM reimbursements are more limited.
The small amounts add up over time. Picking the right bank or adjusting your cash habits can put a couple hundred dollars back in your pocket each year without changing anything else about how you spend.