ATMs: Convenience keeps rising in price
By Laura Bruce • Bankrate.com

It's a rare bank that doesn't have an ATM network. But the convenience of getting quick cash at 8 p.m. on a Saturday is costly if you use a machine that isn't branded with your bank's logo. ATM fees can be exorbitant, but with some careful planning you can avoid them.

Try to estimate your cash needs for a week or two in advance. Take enough cash out when your paycheck is deposited. If you underestimate your cash needs, use a debit card when you're at the supermarket and get extra cash back. There's usually no fee for point-of-sale transactions, and it will save you a trip to the ATM.

Here are the results of the Fall 2001 Checking Account Pricing Study when it comes to ATMs:

Surcharging reaches new high
As unpopular as surcharges are, people keep paying them, and the average ATM surcharge is at an all-time high of $1.45 per transaction.

That's up a penny from Bankrate's spring 2001 survey. The increase is apparently due to the fact that institutions are moving away from the old $1 or $1.25 to the most-common fee of $1.50.

Percent of institutions surcharging
The percentage of institutions that surcharge is 89.4 percent. That number has held pretty steady over the past year, but is up sharply from two years ago when it stood at 77.7 percent.

Total cost of ATM surcharges to American consumers
Bankrate.com estimates users of American ATMs will pay about $2.2 billion in surcharges this year.

Comparison of ATM surcharges
Some folks pay $0.50 for a surcharge, others fork over $2, but $1.50 is the predominant charge.

Surcharges are just part of the story. Many consumers face a fee from their own financial institution when they use a non-bank ATM.

This fee averages $1.36 -- a new record.

Comparison of non-bank ATM fees
With $1.50 the most commonly charged non-bank ATM fee, consumers can expect to routinely pay $3 per transaction at a non-bank ATM when including the surcharge.

No charge for point-of-sale
One way to get around ATM fees is by getting cash back at the point-of-sale -- the supermarket, for example.

Eighty-three percent of financial institutions allow free point-of-sale transactions.

Bankrate.com financial analyst Greg McBride says more people should opt to get cash back during these transactions.

"I don't think the awareness is there that it's a viable option. The incentive is there to use point-of-sale transactions because there's a strong likelihood that you'll incur $3 in fees for using the wrong ATM."

Charging for an ATM card
Only 9 percent of institutions charge customers for using an ATM card. That's off from the 10 percent seen in the past two years, but three years ago, just 6 percent of financial institutions charged such a fee.

Method of charging ATM card use fee
Of the banks that do charge a fee for the privilege of using an ATM card, more than two-thirds assess the fee each month.

Fees to use ATM card
The most common fee for the privilege of using an ATM card is $12 annually. Some banks bill it annually; others nick $1 off your balance every month.

Institutions offering debit cards
Debit cards are offered by 94 percent of the institutions in the survey -- the same as in the spring survey.

-- Posted: Sept. 28, 2001