How to Avoid ATM Fees

Kevin McCORMALLY: I am Kevin McCORMALLY of Kiplinger. I am here with Janet BODNAR, the Deputy Editor of Kiplinger's Personal Finance Magazine to talk about ATM fees. Janet, is it my imagination that those ATM fees keep getting higher and higher and higher?

Janet BODNAR: Not your imagination Kevin. Banks use to charge maybe a $50 or $2 if you used and out of network ATM machine. But now that, for you it's up to $3 and if you count the amount that your own bank is going to charge you, that could be $5 fee that you are paying.

Kevin McCORMALLY: So what can I do to avoid that cost?

Janet BODNAR: Well, one thing you can do is look at the card. Look at your bank card and see what network your bank is a member of, and then use those machines. You may still have to pay a fee for using the machine but at least to all avoid the out of network fee.

Kevin McCORMALLY: Does it make sense to try to go to a community bank or a credit union hoping there are a little more customer-friendly?

Janet BODNAR: You know, it actually might, because if a bank doesn't have its own network, it actually might be a member of a network that charges no fees whatsoever, which could be pretty good.

Kevin McCORMALLY: What kind of surcharge for your networks are there out there?

Janet BODNAR: Well, You might look for a name like WellPoint, CO-OP Financial is another one, another one is called STAR, and all of these networks have nearly thousands of ATM machines around the country.

Kevin McCORMALLY: Okay, what if you use an Internet bank?

Janet BODNAR: If you use an Internet bank, usually what happens is they will reimburse for a certain number of ATM transactions per month, and sometimes they will reimburse you for a limited ATM transaction. So it's really important to find out what the policy is for the bank you are using.

Kevin McCORMALLY: Let's say, I don't want to pay the fees and I am too lazy to change banks. Is there anything I can do?

Janet BODNAR: Oh, one thing you can do is, go to your bank and say, look if I keep a minimum balance, do you have any kind of account where if I keep a minimum balance, I just have no what fees whatsoever. Another thing you can do -- a good friend of mine actually has accounts with two different banks and two different networks, so he figures he's got himself covered. But of course, the easiest thing is simply to walk two blocks, and go to an ATM machine that actually does belong to your own bank.

Kevin McCORMALLY: Thank you Janet.