Why are you paying ATM fees?

     We are all starting to feel the increase in banking fees over the past 10 years.  The rise is affecting all banking customers across the board. What about these ATM fees? Living on a budget is difficult enough, but add extra ATM fees to the mix and you could be breaking that budget every month. It's a big price to pay for a little convenience.

      According to Bankrate.com, this is the seventh consecutive year that these fees have been increasing, and we may not have seen the end of it. Banks are struggling to keep up with machine upgrades, the housing market failures, and laws like the Americans with Disabilities Act.  So as it trickles down, we as customers get the brunt of the expenses.
 

     Here's an example of what can happen when these fees add up.


     When I was selling my truck in January to get my savings built up, I discovered I had no copy of my title. Not wanting to lose anytime on the sale or from work, I would have to get up early to go to the DMV and pay $100 in cash for a copy. Because I didn't plan ahead properly, I forgot the cash and stopped at a Walgreens to use their ATM. To be able to withdraw $100, it was a $3 charge.  I first made a balance inquiry, which did not have a warning for a charge.  That was $2.  After checking my bank account, I discovered that my bank had also charged me $2.  So to take out $100, it cost me $7 in fees.  The kicker is that I did not need the money, and ended up redepositing it later that day.

     There are ways to be more prepared, unlike I was.  Keep these things in mind instead of wasting good money on silly fees.


1. Plan in Advance. If you know you are going somewhere where they only accept cash, stop on the way or withdraw the evening before. Places like carnival and street fairs only take cash for food and games, so it is best to have cash on hand instead of using one of their prices ATMs.


2. Take advantage of cash back. For the $7 I wasted in fees, it would have been cheaper to buy a pack of gum and get cash back. Most grocery stores should be able to meet your cash back needs. Steer clear of gas stations that charge for cash back through the cashier.


3. Know your ATMs. There are apps and online tools to to help you find your nearest ATMs.  ATM Now for iPhone help you locate ATMs for various banks like Wells Fargo and Chase. In addition to that, your bank apps have an ATM locator.


4. Change banks. Although rates are pretty low, changing banks to an online bank is a fairly lucrative option.  Ally bank offers no ATM fees anywhere, as well as similar online banks. Another huge perk is that your checking and savings account balances earn interest. The top 3 online banks right now are Ally, Everbank, and ING.

      Hopefully you have started a budget, which is a great step in the right direction to start saving money.  The biggest step in budgeting is planning and organization.  Know where your money is going, and make sure it is not to somewhere random like Cardtronics (ATM that charged my outragous fees). Make it a priority to have no ATM fees. It is one of the worst fees you can incur and one of the easiest to avoid.