$5 ATM fees coming our way?

[renovation]

ATM fees are on the rise at some of the country's biggest banks.

Chase, for example, is testing out $5 fees for non-customers. That means if you stumble upon a Chase on your way to dinner and decide to take out 20 bucks, you'll pay a 25% fee. And that doesn't even include what your own bank charges you for going out of network, which is typically around $3.

82Email Print JP Morgan Chase (JPM, Fortune 500) is currently testing the $5 ATM fee in Illinois and a $4 ATM fee in Texas -- both for non-customers who use its ATMs -- to see if they bring in enough revenue to introduce nationwide, according to sources familiar with the tests. A Chase spokesman declined to comment.

Out of the bank's network of 16,000 ATMs, more than 20% -- or about 3,600 -- are located in these two states. Chase spent an estimated $400 million to build the entire network and pays $200 million a year to run it. So the bank is making non-customers pay a significant amount for the convenience of using this large network.

Meanwhile, HSBC Bank USA (HBC) this month started charging all non-customers a $3 fee for using its ATMs, saying that this pricing is more competitive. Previously, about 60% of its ATMs charged a $3 fee for non-customers, while the remaining 40% charged either $1.75 or $2.50.

While other megabanks like Wells Fargo (WFC, Fortune 500), Bank of America (BAC, Fortune 500) and Citi (C, Fortune 500) haven't made similar changes yet, CardHub.com CEO Odysseas Papadimitriou says they're not far away.

Hate ATM fees? Try these fee-friendly banks
"It's easy to compare debit cards by looking at the monthly fee, so banks are going to try to minimize the monthly fees and load you with fees in different ways -- and ATM fees are going to become one of the most popular ways to do that," said Papadimitriou.

Even some of the banks that CNNMoney once called the least evil -- because they had free checking and zero ATM fees for customers -- are having to reconsider.

http://money.cnn.com/2011/03/16/pf/a...ex.htm?iid=RNM gee how much do we really need banks - time to think credit unions more and more.

[cruelpupet]

About two years ago I went to a BOA and it had a $5 fee, and I vowed to never use ATM cards with them again, and I havnt.

Then when my bank was taken over my checking account rules were altered a bit, and because I didnt maintain 5k in the account, they were charging me $1 to use my own banks ATM.

So I switched my account type and started sending part of my paycheck by direct deposit to qualify for their free checking.

By carrying 3 different ATM cards (ING Direct, Soverign, and Chase) on me, Ive managed to avoid ATM fees for the past 18 months or so.


What will we have to do to avoid these fees next?

[cruelpupet]

Oh, on a side note ING Direct ATM cards almost have enough locations that it might be the only card you need.

AFAIK every 7eleven, McDonalds, Duane Reede, and CVS ATM is free...not to mention random bodegas in NYC

[renovation]

my new rule will be go to a walmart or store buy a pack of gum using the debit option .pull out the max amount or what i really need in cash. one more way to get around the fee !

[Chgoman]

I use USAA for my checking and savings and they just reimburse me for ATM charges up to $15 a month so I don't have to worry about it. I rarely use the ATM, but when I need to it's nice to be able to just drop by the closest one wherever I am.

[Devhux]

...and I thought the $3 fee was bad up here ($1.50 from the ATM I'm using, $1.50 from my bank). Even using a "generic" ATM at most costs 75 cents more.

[nate el bueno]

Chgoman, how do you like their financial side? I've been thinking about signing up for their AMEX card.

My own bank actually charges 3 dollars for cards to other banks. Most other places are ~1.50 around me. I also like the "Chase is testing out..." line. Right.

[Chgoman]

I use them for Checking, Savings and Insurance right now. On the banking side, I love that I can deposit checks via my phone and use any ATM. Never have to go to a bank again for basic items.

On the insurance side they were a lot cheaper for auto insurance than AAA (which I had a great rate with as my wife's a teacher and they have good rates for teachers) but more expensive for homeowners (but with better coverage). Overall it saved a bit of money and gave me better coverage.

I also got new life insurance for my wife and I through USAA and their term rates blew away anyone elses. They were the cheapest by far and the process was pretty smooth.

I haven't used them for investment purposes at this point, but I've been very happy with everything I've done with them so far.

[clutchy]

i've switched most of my accounts to wells fargo which i got b/c of my mortgage. It's all free but i don't get ATM fees... i don't think i've paid an ATM fee in years. Do you guys really need cash that often and why don't you have some in your house?

[cruelpupet]

i've switched most of my accounts to wells fargo which i got b/c of my mortgage. It's all free but i don't get ATM fees... i don't think i've paid an ATM fee in years. Do you guys really need cash that often and why don't you have some in your house?

Sometimes you dont realize you dont have much cash in your wallet and you need to order lunch.

Sometimes youre in the city and your banks are not near you

But it is avoidable, and Im proud and surprised Ive been able to be ATM fee free for about 2 years.