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I went to the DMV last week to get a lien removed from my car title. Part of the total included a $5 cash only notary fee. I looked in my wallet and noticed that I didn’t have $5 cash on me. The customer service representative kindly pointed me toward the ATM in the back of the office. I knew I was going to get a big fee charge for using an this ATM.

The convenience fee for this ATM? $3! I made a stupid mistake, but I know not to skip on my planned ATM withdrawals to avoid being hit with an ATM fee like that.

(Note: These two machines were not placed next to each other by accident… ALWAYS be prepared!)

How much can ATMs fees be?

According to a study at bankrate, the common charge is $2, with 22 banks charging higher than that amount.

How prevalent are ATM fees?

Don’t count on being near an ATM that doesn’t have a surcharge when you need some cash; 99.2 percent of ATMs surcharge.

Source: BankRate

Why do banks charge so much on ATM surcharges?

Bank of America commented that the $3 fee is also to be a deterrent for some and create shorter lines for their customers. Gwenn Bézard of Aite Group noted that ATM surcharges can be a more predictiable source of income.

How can I avoid ATM fees?

• Use your own bank or credit union ATM whenever possible. This is the easiest way to avoid ATM fees. My individual checking account is with Wachovia and there are plenty of ATMs on my way to work and around my apartment. My mistake was not stopping by the ATM during the week for my cash withdrawal.
• Join a credit union. Credit unions typically have lower fees than banks when you use out of network ATMs. Some credit unions have banded together to expand their ATM network like the CO-OP network, a big benefit for you.
• Use AllPoint to find a no surcharge ATM near you. If your bank doesn’t charge an ATM fee, consider using an Allpoint ATM. ING Direct customers can use the ATMS free of charge.
• Switch your account to a bank that doesn’t charge ATM fees. Some banks like Charles Schwab Checking reimburse ATM charges. Check with your local banks to see if they offer this service.
• Take more money out when you use ATMs. When you go to the ATM take out a larger amount rather than making several small withdrawals. Our friend thought he was controlling his spending by only take $40 at a time, but he still went to the ATM repeatedly and got fees on top on that.
• Use your debit card to get cash back. This can be a very convenient option for those who mainly shop with the check cards and only need to take out some money occasionally.

Bank fees aren’t going to go away, so complaining about them won’t help. With some planning on your part, though, you can save money on ATM fees and build wealth.

What do you do to avoid ATM surcharges?