by Penny Nama

Created on: January 28, 2008

ATMs have made our lives easier, giving us access to cash any time day or night. But, this ease and convenience comes at a cost. The ATM might charge you fees, your bank might charge you fees, and your twenty dollar withdrawal now costs twenty-five! By avoiding these fees you can save money and it isn't as hard as you might think.

Begin by checking out your bank. Does it have ATMs in the areas where you are likely to withdraw cash? Does it charge you a surcharge for using another bank's ATM? Some banks don't charge any fees if you use another bank's ATM, and some will even refund the fee the other bank charges you! If your bank doesn't have any ATMs near the areas you are likely to withdraw cash and it charges you a fee for withdrawing money from another bank's ATM, you might want to think about changing to a more ATM user-friendly bank.

If you don't want to change banks, or no banks in your area have the ATM features you are looking for, there are still plenty of ways to avoid ATM fees. Most ATM cards now double as Visa or Mastercard debit cards. Instead of heading to your nearest ATM when you need cash, go to your local 24-hour drugstore or grocery store. Buy a pack of gum or your weekly groceries and get cash back. You won't be charged any fees, and you generally have more flexibility in how much money you get back. For example, if you only need ten-dollars in cash to put in a birthday card, why get a twenty from the ATM? We both know the extra ten dollars will be spent before you even realize it.

Another way to minimize your fees is to take out larger amounts of money. Five-dollars in fees is a big percentage of the twenty-dollars you withdrew, but it is a much smaller percentage if you withdraw one-hundred-dollars. In order for this system to work, you need the discipline to not spend the money all at once, but use it only when you would have withdrawn cash.

ATM fees can eat up a large portion of your bank account. By investigating your bank, changing banks if necessary, and planning ahead, you can avoid some or all ATM fees and keep your money, yours!

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