SPEAK OUT: ATM, Checking Fees Hit Record Highs
The average cost of an out-of-network ATM transaction is $4.07. Should something be done?
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Fees on checking accounts hit an all-time high in 2012, reports the financial website Bankrate.com, with much of the increase coming in charges for use of out-of-network ATMs.
According to the site, the average fee assessed by the owner of a foreign ATM climbed 4 percent this year to $2.50.
Combined with the typical charge by a consumer's own bank for an out-of-network withdrawal—$1.57, up 11 percent—the average cost per transaction now stands at a whopping $4.07.
And for the first time ever, all financial institutions surveyed by Bankrate.com reported charging non-customers for ATM transactions.
Other checking account expenses—such as maintenance fees and non-sufficient funds fees—also have risen, due in part to banks' response to new regulations capping overdraft fees.
The Washington metropolitan area may not have made the list of the five worst cities for out-of-network charges, but there's certainly no shortage of foreign ATM fees in the region.
Do you typically swallow the fee, or are you careful to withdraw money only from your own bank? What do you do if you're caught in a pinch? And should lawmakers look to cap ATM fees as well, or are they simply a part of the business?
Let us know what you think in the comments.
Frank McCants
3:19 pm on Monday, September 24, 2012
The private banking institutions should be able to charge whatever fees they'd like to for out of network customers. If you do not like it, you do not have to use that particular company's machine.
Bill Hussein O'Stalin
3:51 pm on Monday, September 24, 2012
Perfect answer but liberals hate the after effects of personal responsibility.
jeff kirin
6:45 pm on Monday, September 24, 2012
Free market works both ways, check out CalPIRG’s tips to switch to banks with lower fees at
http://www.calpirg.org/news/caf/higher-bank-fees-now-norm-consumers
Fran Asbeck
7:10 am on Tuesday, September 25, 2012
Throw your bank under the bus. Join a credit union. You OWN the credit union; the bank owns you.
JustABill
8:33 pm on Monday, September 24, 2012
Wait a minute, I could have sworn our wonderful President made several promises to the American people in his 2008 campaign about reigning in the banking industry and making substantial cuts to basic banking fees. I also thought he bragged about his success in keeping that promise in 2009 or 2010 with some magical new banking regulatory act. Oh that's right ... Democrats like President Obama only want to pretend as if they are working for the common man and fighting against those big mean old banks when in reality their actions and campaign donations from the banking industry prove exactly the opposite. Just like taxes, Democrats have yet to find a banking fee they don't like.
jag
12:12 am on Tuesday, September 25, 2012
Riiiiight. Dems love banking fees. And making babies cry. Dems are evil.
In case you're actually ignorant and not just making a joke, the implemented banking laws were regarding basic consumer protection against shady practices (e.g. obscene overdraft fees buried 15 pages deep in .05 font size fine print). It has nothing to do with these straight forward ATM fees. But I imagine you know that and just like whining (whether joking or not, I can't say for sure).
Lee Havis
6:27 am on Tuesday, September 25, 2012
Competition and free market banking may seem weird and strangely "no attempt" to solve problems, but actually freedom does work. So, Frank, I recommend you try freedom as a solution. It's been such a long time that we've had freedom and competition in banking, that the Frank's of the world have the only idea of a "government" solution. What we need is less regulation, and more competition. We didn't get the banking failure of 08 because there was "too much" competition among banks, but rather too much government "engineering" -- that's to another Frank named Barney. Freedie Mac and Fannie Mae? No problem, just soak up the derivative debt, as long as poor people get into houses they can't afford to pay for. I'm OK with some "protection" for private accounts, like "federal deposit" insurance, and commonsense state regulation of banking industry (corruption, gang-related; drug money laundering; false advertising), but, that said, the free marketplace will sort out the winners and loses in the banking industry better than government, which has now forced out competition; so all we have left are a few big banks that are "too big to fail" Let's set a path for commonsense in this area. Let it begin right here in College Park.
steve
7:38 am on Tuesday, September 25, 2012
Free checking and ATM fees are marketing tools - they arent really free banks use them to aquire customers. Some of the push in costs for atm fees comes from banks looking to make up lost revenue from the swipe fees that were legislated out i n the last attempt at cost controls by our omnipresent government regulations.
ATms are likely to disappear in the future anyway - more electronic wallets, credit cards will reduce the number of ATM customers and banks will havea hard time justifying so many ATM locations and the costs will naturally increase.
David Lange
7:42 am on Tuesday, September 25, 2012
Easy solution to ATM fees - join a credit union. NO fees, and there are 40,000 ATMs nationally in the credit union network - including the ATMs in the 7-11 stores!
David Lange
The_legal_immigrant
9:15 am on Tuesday, September 25, 2012
@ John Davisson: Are all other other issues solved and we can now was time talking about $4 fees? Why don't you offer this for discussion:
http://news.investors.com/092412-626848-health-premiums-up-3065-obama-vowed-2500-cut.aspx
Polly
10:28 am on Tuesday, September 25, 2012
I'm with Fran and David. Join a credit union as millions of other former bank customers have done. And this is from a former big bank official of 20 years that saw from the inside how banks operate. As a credit union member the board answers to you, not shareholders. I've been a very happy credit union member for many years and I've found them to be among the most credible.
Tim Miller
12:33 pm on Tuesday, September 25, 2012
Frank, the reason banks charge for ATM is very very simple. I know it, other people know it & most importantly, the banks know it, What is it? "PEOPLE ARE LAZY" They won't even walk in the bank when it's across the street when an ATM is right in front of them. Also it's a convenience thing.
So no this does not need to be regulated, if people will pay $10.00 just to take out $20.00 than so be it. That's on the consumer to choose to pay the fees or not.
And for all the whinny everyone is doing about these "BIG BAD BANKS", they are not leaving them for the so called "Better Banks".