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March 23, 2021

Are ATM fees heading higher again?

Some of the biggest banks in the U.S. are imposing a variety of new fees on those withdrawing money from automated-teller machines.

Atm Looking to replace billions of dollars in revenue expected to be lost from new federal regulations on overdraft charges and debit cards, the banks view ATMs as their next cash cow.

So much so that JP Morgan Chase is currently testing a $5 ATM fee in Illinois and a $4 ATM fee in Texas – both for non-customers who use its ATMs – to see if they produce enough revenue to introduce nationwide, CNN reports.

Across the border, TD Bank recently stopped reimbursing its customers for fees incurred through the use of other banks' ATMs while HSBC Bank will ding all non-customers with a $3 fee for using its machines, a 40% increase over its existing fees.

While other nationwide banks like Bank of America and Citi haven't made similar changes yet, Odysseas Papadimitriou, CEO at CardHub.com says they're likely to follow suit.

Can Canada’s major banks, which now charge an average of about $2 in fees to use the other guy's ATMs, then be far behind?  Seems unlikely.

Your best bet, of course, is to stick with your own bank and to steer clear of the private-label machines lurking in the convenience store.

Alternatively, many grocery chains still allow you to withdraw at least $100 cash from your account when you pay with a debit card

In the meantime, have a look at No More ATM Fees, an iPhone app that locates not just branches of the major Canadian banks, but all ATMs within close range as well, listing them or showing them as pins on a Google map.

What do you think about paying a higher fee for using another bank’s ATM? What’s your breaking point when it comes to fees? Or are you a cash-back user only?

By Gordon Powers, MSN Money



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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...