3 On Your Side: ATM And Overdraft Fees Continue To Rise
By Jim Donovan
PHILADELPHIA (CBS) -- Getting money out of an ATM isn't getting any cheaper. A new report finds the fees have reached record highs. You'll get socked with the fees when you use an out-of-network ATM. But as 3 On Your Side Consumer Reporter Jim Donovan finds, there are some steps that you can take to avoid them and pay less.
They're designed for convenience, but at ATM's across the country some consumers are paying a heavy price to get their money. ATM user Sandhi Santini says, "No one likes their own money ripped away like that."
A new report from Bankrate.com shows the average out-of-network ATM fee is now $4.52, up 21 percent in the last five years. Santini says, "That's really highway robbery, that's highway robbery."
The fees vary from city to city. The study found Atlanta, New York and Phoenix have the highest ATM fees in the country. Kansas City, Cincinnati and San Francisco were among the lowest. The Philadelphia region ranks 19th of 25 large markets for out-of-network ATM fees, averaging $4.29.
"It's easier than ever to avoid paying those fees," says Greg McBride, Chief Financial Analyst with Bankrate.com. He urges people to use ATM's within their bank's network and recommends joining a bank that reimburses out of network charges. McBride says, "And if you're really at a pinch for cash you can use your debit card at the point of sale and get cash back."
While banks need fees to maintain the ATMs, McBride says consumers are getting better at avoiding them. ATM user Joseph Mercado says, "It's annoying you know to pay the fees, obviously." Especially since the experts expect the fees will continue to rise.
The Bankrate.com report found overdraft fees also set a new record. The national average is $33.07. But in the Philadelphia region they're even higher, averaging $34.20, the sixth highest in the nation. So be sure to keep an eye on your accounts!