Bank ATM Fees In 2025: 6 Ways To Avoid Rising Costs
Discover current ATM fee rates, what you're paying, and proven strategies to avoid unnecessary charges.
How Much Are Bank ATM Fees in 2025?
Getting cash from an automated teller machine has become increasingly expensive for millions of Americans. If you’re using an out-of-network ATM to withdraw cash, you’re likely paying more than ever before. Understanding the current state of ATM fees, what they include, and how to avoid them is essential for managing your banking costs effectively.
Average Bank ATM Fees Overview
Out-of-network ATM fees have reached record levels in 2025, averaging $4.86 per transaction nationwide, according to Bankrate’s comprehensive 2025 Checking Account and ATM Fee Study. This represents a significant increase of 9 cents from the previous year, continuing an upward trend that has persisted for years.
When you withdraw cash from an ATM that doesn’t belong to your bank, you’re typically charged two separate fees: one from the ATM’s owner (called a surcharge) and another from your own bank (called an out-of-network fee). These combined charges have climbed steadily since Bankrate began tracking ATM fees in 1998, when the average combined fee was just $1.97.
Breaking Down ATM Fee Components
The $4.86 average out-of-network ATM fee consists of two distinct charges that work together to create the total cost:
ATM Owner Surcharge
The ATM owner’s surcharge represents the larger portion of your out-of-network fee. In 2025, the average surcharge has reached $3.22 per transaction, marking the fourth consecutive year of record highs. This surcharge is charged by the financial institution or private company that owns and operates the ATM machine. These owners rely on surcharge revenue to maintain their ATM networks and cover operational costs, especially as cash usage continues to decline nationwide.
Bank Out-of-Network Fee
Your own bank or credit union charges an additional fee when you use an ATM outside their network. The average out-of-network fee charged by banks is $1.64 per transaction in 2025, up 3.8 percent from 2024 and representing the highest level since 2018. Banks use these fees as a revenue stream and to encourage customers to use their own ATM networks.
Regional Variations in ATM Fees
ATM fees vary significantly depending on where you live. Certain metropolitan areas charge substantially higher fees than the national average. When Bankrate surveyed major U.S. cities, they found considerable differences:
| Metropolitan Area | Average Out-of-Network ATM Fee |
|---|---|
| Atlanta, Georgia | $5.37 |
| Phoenix, Arizona | $5.35 |
| San Diego, California | $5.31 |
| National Average | $4.86 |
Residents in Atlanta, Phoenix, and San Diego face particularly high ATM costs, with fees exceeding the national average by more than 50 cents per transaction. Depending on how frequently you withdraw cash, these higher regional fees can add up significantly throughout the year.
Why ATM Fees Keep Rising
Several factors contribute to the continuous increase in ATM fees:
Declining Cash Usage
As more Americans shift toward digital payments, debit cards, and mobile payment solutions, the volume of cash withdrawals continues to decline. Financial institutions and ATM operators are compensating for this reduced transaction volume by increasing the fees charged on each withdrawal. This creates a challenging situation where fewer people use ATMs, but those who do pay higher fees.
Reduced Bank Teller Services
Online banking has nearly eliminated the need for traditional automated bank tellers to manage routine account functions. According to recent industry surveys, only 5 percent of bank customers rely on ATMs to manage their accounts. Banks are using ATM surcharges and out-of-network fees to offset lost revenue from reduced foot traffic and teller services.
Profit Optimization Strategy
ATM fees represent an attractive revenue source for banks because they don’t directly impact existing customers’ primary banking relationships. Banks can raise these fees without alienating their core customer base, making it an easy way to boost profitability. Financial analysts note that ATM fees are “one of the ways for the bank to certainly make money, and it’s one of the ways to do so that doesn’t really hurt their own customers.”
How Different Banks Charge ATM Fees
Different banks and financial institutions structure their ATM fees differently. Some major banks offer ATM networks of varying sizes, while others provide fee reimbursement programs:
| Bank Name | ATM Network Size | Out-of-Network Fee | Reimbursement Programs |
|---|---|---|---|
| Chase Bank | Over 16,000 | $3 | Premium account holders receive monthly reimbursements |
| Bank of America | Over 17,000 | $2.50 | Preferred Rewards members get reimbursements |
| U.S. Bank | Over 40,000 | $2.50 | Platinum tier customers get one reimbursement per period |
| Wells Fargo | Over 10,000 | $3 to $5 plus 3% | Premier Checking customers get unlimited reimbursements |
Practical Strategies to Avoid ATM Fees
While ATM fees continue rising, you have several effective options to minimize or completely eliminate these charges:
Stay Within Your Bank’s ATM Network
The most straightforward way to avoid ATM fees is to use only ATMs operated by your bank or credit union. Major banks maintain extensive ATM networks with thousands of machines available to customers. Before choosing a bank, verify the size and geographic distribution of their ATM network to ensure convenient access to cash near your home, workplace, and frequent destinations.
Use ATM Network Partnerships
Many banks participate in nationwide ATM networks that allow customers to withdraw cash from partner banks’ ATMs without paying out-of-network fees. Ask your bank whether they participate in networks like Allpoint, MoneyPass, or regional ATM cooperatives that can provide free access to thousands of additional machines.
Get Cash Back at Retail Stores
When making purchases at grocery stores, pharmacies, or retail locations, you can request cash back at no charge. This strategy allows you to access cash without paying ATM fees while consolidating your banking errands. Many retailers offer this service regardless of the purchase amount.
Switch to Online Banks
Online banks and credit unions often reimburse ATM fees or provide access to extensive nationwide networks. Some online financial institutions reimburse all ATM fees charged by other banks, effectively eliminating the cost of out-of-network withdrawals. Compare online banking options to find one that offers ATM benefits aligned with your needs.
Use Mobile Banking Services
Mobile banking apps and digital wallets reduce the need for physical cash withdrawals. By using contactless payments, peer-to-peer payment apps, and digital payment options, you can minimize ATM visits and the associated fees. This approach also provides enhanced security and transaction tracking.
Choose a Bank with Fee Reimbursement Programs
Some premium checking accounts offer ATM fee reimbursement programs. If you frequently use out-of-network ATMs, opening an account with a bank offering reimbursements (typically for premium tier accounts) may offset the fee costs over time.
Other Related Banking Fees to Monitor
Beyond ATM fees, banks charge various other fees that can impact your account. Understanding these charges helps you make more informed banking decisions:
Overdraft Fees
Overdraft fees have increased in recent years, with the average overdraft fee now reaching $27.08. These fees are still charged by 94 percent of surveyed accounts and can reach as high as $38 per occurrence. Monitoring your account balance and setting up overdraft protection can help you avoid these charges.
Insufficient Funds (NSF) Fees
NSF fees have experienced a positive trend downward, dropping to an average of $17.72, the lowest level in Bankrate’s survey history. More than one-third of accounts (36 percent) no longer charge any NSF fee, indicating improved consumer-friendly banking practices.
Monthly Service Fees
Many banks charge monthly maintenance fees for checking accounts. However, 45 percent of non-interest checking accounts charge no monthly service fees, while another 42 percent waive the fee for customers who set up direct deposit. This means finding a truly free checking account remains possible.
Interest-Bearing Account Considerations
Interest-bearing checking accounts often come with higher minimum balance requirements to waive monthly service fees. The average minimum balance requirement has climbed to a record high of $10,210, representing an 18 percent increase from the previous year. If you’re considering an interest-bearing account, carefully evaluate whether the interest earned offsets the minimum balance burden and any monthly fees.
Frequently Asked Questions
Q: What is the average ATM fee in 2025?
A: The average out-of-network ATM fee has reached $4.86 per transaction in 2025, representing a record high. This includes a $3.22 surcharge from the ATM owner and a $1.64 fee from your bank.
Q: Why do banks charge ATM fees?
A: Banks charge ATM fees to generate revenue from customers using out-of-network machines. As cash usage declines and online banking reduces the need for teller services, banks increasingly rely on ATM fees as a profit source that doesn’t directly impact their existing customer relationships.
Q: How can I completely avoid ATM fees?
A: You can avoid ATM fees by using your bank’s in-network ATMs, participating in ATM network partnerships, getting cash back at retail stores, switching to online banks with reimbursement programs, or choosing banks offering fee-reimbursement with premium accounts.
Q: Do all banks charge out-of-network ATM fees?
A: In Bankrate’s survey, 100 percent of banks surveyed charged surcharges on their ATMs for non-customers. However, 39 percent of banks surveyed offer at least one account type with free out-of-network ATM withdrawals.
Q: Which cities have the highest ATM fees?
A: Atlanta, Georgia leads with an average of $5.37, followed by Phoenix, Arizona at $5.35, and San Diego, California at $5.31 per out-of-network transaction.
Q: Should I switch banks to reduce ATM fees?
A: If you frequently use out-of-network ATMs, switching to a bank with a larger ATM network, better ATM partnerships, or fee reimbursement programs could save you significant money annually. Compare banks’ ATM networks and fee structures before making a decision.
Q: What percentage of Americans rely on ATMs?
A: Only 5 percent of bank customers rely on ATMs to manage their accounts, according to recent industry surveys. This declining reliance contributes to rising ATM fees as banks compensate for reduced transaction volume.
Q: Are there banks that reimburse ATM fees?
A: Yes, some online banks and credit unions reimburse ATM fees, while others offer reimbursement programs as part of premium checking accounts. Research banks’ specific ATM reimbursement policies to find options that match your needs.
References
- ATM Fees Hit Record High for Third Consecutive Year — Bankrate. 2025-10-30. https://www.bankrate.com/banking/checking/checking-account-survey-2024/
- ATM Fees Are at a Record High, a New Survey Finds. Here’s Why. — CBS News. 2025-10-30. https://www.cbsnews.com/news/atm-fees-record-high-2025-bankrate/
- How Much Are Bank ATM Fees? — Bankrate. 2025-11-01. https://www.bankrate.com/banking/how-much-are-atm-fees/
- 2025 Checking Account and ATM Fee Study — Bankrate. 2025-10-30. https://www.bankrate.com/f/102997/x/501bc34c86/checking-study-press-release-final.pdf
- Average Out-of-Network ATM Fees Up by a Penny — Payments Dive. 2024-10-31. https://www.paymentsdive.com/news/ATM-cash-fees-checking-withdrawals-payments-bankrate/692572/
- How To Avoid ATM Fees — Bankrate. 2025-11-01. https://www.bankrate.com/banking/how-to-avoid-atm-fees/
- How Bank Fees Are Squeezing Your Budget — Bankrate. 2025-11-01. https://www.bankrate.com/banking/how-bank-fees-are-squeezing-your-budget/
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