ATM Fees Hit Record High for Third Consecutive Year

Average overdraft fee dips, but is still charged on 94% of accounts

NEW YORK – September 10, 2025 – The average total fee for an out-of-network ATM withdrawal has reached a record high for the third year in a row, according to Bankrate’s annual Checking Account and ATM Fee Study. Bankrate’s study has surveyed both non-interest and interest accounts and their associated fees going back 27 years. Click here for more information:

https://www.bankrate.com/banking/checking/checking-account-survey/

ATM Fees

The cost of an out-of-network ATM withdrawal (the surcharge assessed by the ATM owner and the fee your bank charges for going outside of the network) has reached a record high for the third consecutive year at $4.86, up 1.9% from $4.77 in 2024. The average ATM surcharge reached a record high for the fourth consecutive year at $3.22, up 0.9% from $3.19 in 2024, and the average fee assessed by your bank for going outside of the network rose to $1.64, up 3.8% from 2024 and the highest since 2018.

The cost of combined ATM fees vary by metro, with Atlanta having the highest average ATM fee of $5.37 and Boston having the lowest of $4.37.

Highest Average ATM Fee By Metro*	Lowest Average ATM Fee By Metro*
1. Atlanta – $5.37	25. Boston – $4.37
2. Phoenix – $5.35	24. Seattle – $4.42
3. San Diego – $5.31	23. Philadelphia – $4.43
4. Detroit – $5.25	22. Minneapolis – $4.45
5. Cleveland – $5.21	20. Baltimore & District of Columbia (tie) – $4.56

*Reflects both ATM fees combined (those charged by the ATM owner and the fee charged by your bank for going out of network; Baltimore and the District of Columbia were tied, coming in at 21 overall

“As ATMs become less frequently used, associated fees are likely to rise,” said Bankrate Financial Analyst Stephen Kates, CFP. “Consumers can most easily avoid these fees by banking with institutions offering wide ATM networks or reimbursing out-of-network ATM charges. An increasing number of online banks and brokerages now reimburse ATM fees, regardless of the machine used.”

Overdraft and NSF Fees

Overdraft and non-sufficient fund (NSF) fees typically charged by banks both dropped year-over-year. The average overdraft fee dropped 1% from $27.08 in 2024 to $26.77 in 2025, but is still slightly above 2023’s average of $26.61.

On the other hand, the average non-sufficient fund (NSF) fee dropped for the fourth year in a row. The average NSF fee in 2025 is now $16.82, down 5% from the previous record low of $17.72 in 2024. The vast majority of banks (94%) still charge overdraft fees, but the number of banks charging NSF fees has fallen to a new low of 61%.

Overdraft fees also vary by metro area, with the highest overdraft fees by metro located in cities like Philadelphia, while the lowest are in Washington, D.C.

Highest Average Overdraft Fee by Metro	Lowest Average Overdraft Fee by Metro
1. Philadelphia – $32.60	25. Washington, D.C. Metro – $19.63
2. Pittsburgh – $30.60	24. Miami – $19.67
3. Milwaukee – $30.28	22. San Francisco & Los Angeles – $22.27*
4. Denver – $30.22	21. New York City – $23.58
5. St. Louis – $30.00	20. San Diego – $24.00

*San Francisco and Los Angeles were tied, coming in at 23 overall

“Although overdraft and nonsufficient funds fees are declining slightly, their impact on consumers remains unchanged,” Kates added. “Unfortunately, these fees disproportionately penalize consumers who are already managing extremely tight balances. Carefully tracking account balances or linking a secondary account to cover overdrafts will provide greater protection for consumers’ financial health than simply waiting for fees to decline further.”

Two-thirds of accounts (66%) offer some leeway to accountholders before charging the full overdraft or NSF fee, remaining unchanged from 2024. This could mean a grace amount of $1 to $100, giving as long as 72 hours for the accountholder to bring the balance back to a positive number, or refunding two overdrafts per year in some cases.

Interest and Non-Interest Checking Accounts

The majority of interest checking accounts (56%) require a balance threshold, but nearly half (47%) of non-interest checking accounts are free, unchanged from 2024 and remaining in the 45-48% range observed since 2020. This level is also higher than any seen between 2011 and 2019. Additionally, 48% of non-interest checking accounts will waive the fee if you sign up for direct deposit, and overall, 95% of non-interest checking accounts are free or can become free by signing up for direct deposit.

Both the average monthly fee and average minimum balance required to avoid the monthly fee on an interest checking account increased year-over-year. The average fee has increased 1.3% to $15.65, the third-highest on record since $16.19 in 2022 and the record high of $16.35 in 2021. Additionally, the average balance required to avoid the monthly fee reached $10,704, up 4.8% from the previous record of $10,210 in 2024. This balance requirement on an interest checking account has risen more than 40% since 2020 and has more than tripled since 2009, demonstrating a 7.5% compounded annual growth rate.

“Review the qualifying requirements for reducing or removing fees on interest-bearing checking accounts,” Kates concluded. “While balance requirements may be high at many banks, alternatives often include setting up direct deposit, using your debit card frequently, or linking other accounts. Don’t settle for paying a fee when many banks offer options for a fee-free account.”

Methodology:

Bankrate conducted the survey among a total of 10 banks and thrifts in each of 25 large U.S. markets; 1 interest and 1 non-interest checking account, as well as their associated ATM fee policies, were surveyed from 245 financial institutions offering consumer checking accounts; 228 interest checking accounts and 221 non-interest checking accounts were surveyed between June 2 – July 3, 2025.

About Bankrate

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For more information:
Abby Yarber-Hartness
Public Relations Specialist
abby.yarber@bankrate.com
(704) 697-1372
Bankrate