Strategy can help you avoid ATM fees

By EVE MITCHELL
THE OAKLAND TRIBUNE

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No doubt, ATMs do make life easier. But they can also make life a little more expensive if you don't have a strategy for avoiding costs that can occur when you withdraw money from an ATM outside of your bank's network. Such fees add up to an estimated $4.4 billion in ATM annual surcharges and out-of-network fees, according to Bankrate.com.

Financial institutions impose an average surcharge of $1.78 on noncustomers who use a bank's ATMs to withdraw money, according to Bankrate.com. That's on top of the average $1.25 fee charged by the customer's own bank for going outside the ATM network to withdraw money.

"The good news is that these fees are easily avoided," said Greg McBride, senior financial analyst for Bankrate.com.

One way to avoid getting hit with ATM costs is to belong to a financial institution that is part of a surcharge-free network such as CO-OP, STARsf, or Allpoint, experts advise.

"A lot of small institutions, such as local community banks and credit unions that do not have large ATM networks, have joined ATM alliances," said McBride. "For the (member) institutions, it really levels the playing field in terms of competing against large banks that have far-flung ATM networks."

Such networks provide free access for customers of member banks and credit unions to thousands of ATMs nationwide.

Among the California-based credit unions and banks that belong to the Allpoint surcharge-free network are Technology Credit Union, Chevron Federal Credit Union, OneCalifornia Bank and Affinity Bank.

The Allpoint network gives Tech Credit Union customers access to more than 32,000 ATMs nationwide. That's in addition to about 25,000 surcharge-free ATMs that are part of the CO-OP network and a small number of Tech Credit Union-owned ATMs operated in its branches.

The most obvious way to avoid ATM costs is to go to your own bank for ATM withdrawals.

"Banks provide free access to their ATMs, so the key is to plan ahead as to when and where you make withdrawals," said McBride.

Consumers should check their banks' Web sites to find out which bank-owned ATMs are near the consumer's job, home or commute route, he added.

Look for a financial institution that doesn't charge fees for using an ATM outside the network, said McBride. Also, some financial institutions, including some Internet-based banks, may have policies that provide for reimbursement of surcharges.

Take advantage of point-of-sale terminals in stores and post offices. Most point-of-sale terminals give cash back at no charge when a purchase is made.

"Whenever I am on the road, I go to a store and buy a small item and get $50 back," said Shirley Dean, education director for Consumer Credit Counseling Services of the East Bay.

Quick Tips

Plan ahead: Try to calculate how much money you will need each week and plan to make one ATM stop to cover those expenses.

Change banks: Try to find a bank that doesn't charge you a fee when you use an ATM that is not in its network. As a general rule, smaller banks and credit unions are less likely to charge this fee.

Credit union or community banks often have free ATM networks: That means you can use the ATMs for no money at various banks, credit unions and other independent spots.

Try an online bank: More and more online banks and brokerage firms offer surcharge-free access to other banks' ATMs (or will refund any surcharge applied) to remain competitive.

Get cash back at stores: To get around paying ATM fees, you may be able to ask for cash back when using your debit card while shopping.