how to avoid bank fees: ATM fees hit record highs, and these 4 sneaky bank surcharges are draining Americans’ wallets fast
Bank fees continue to change, and as The Sun’s report notes, experts say they depend on things like economic conditions, new rules and competition from fintech companies. Banks use these fees to increase revenue and cover operational costs, and although each fee may seem small, it quickly adds up and harms people’s financial health.
ATM fees are increasing in the USA
Inflation is causing many bank fees to increase, especially ATM fees, which are increasing now that fewer people are using them. The average cost of using an out-of-network ATM rose to $4.86 from $4.77 last year, according to Bankrate’s 2025 checking account and ATM fee study, reported by The Sun. This $4.86 total includes a $3.22 surcharge from the bank operating the ATM and a $1.64 fee from your own bank for using an outside ATM.
Some major US cities are among the worst offenders, with average out-of-network ATM fees now exceeding $5 per transaction.
ATM fee breakdown by city:
- Atlanta: $5.37
- Phoenix: $5.35
- San Diego: $5.31
- Detroit: $5.25
- Cleveland: $5.21
- Miami: $5.11
- Tampa: $5.05
- Los Angeles: $4.99
- San Francisco: $4.99
- Pittsburgh: $4.98
Other bank fees hurting Americans
Overdraft fees charged when banks cover transactions that negatively impact your account have dropped slightly, but they’re still hurting people’s wallets. The average overdraft fee fell 1% this year to $26.77 and is charged by 94% of checking accounts, according to Bankrate. The average non-sufficient funds (NSF) fee charged when the bank declines a payment fell for the fourth year in a row to a new record low of $16.82.
Another cost hitting Americans is that the monthly service fee for interest-bearing checking accounts is currently $15.65, Bankrate found. Minimum balance rules are also increasing. The average minimum balance is now $10,705, which is almost 5% higher than last year, according to The Sun. Bankrate also shared the most common bank fees. These include ATM surcharges, fees for using ATMs other than your bank, overdraft fees, NSF fees, and monthly service fees.
People can avoid many of these fees by choosing low-fee bank accounts, using bank ATMs only, and checking their balances frequently. Other easy tips are to turn on balance alerts, maintain a minimum balance on the account, or use direct deposit to bypass monthly fees. Despite all these rising fees, Americans remain loyal to their banks, keeping their checking accounts in brick-and-mortar banks for an average of 19 years, according to Bankrate’s survey. To avoid ATM surcharges altogether, experts say you should choose banks with large ATM networks, such as:
- Capital One: 70,000+ ATMs
- Citibank: 60,000+ ATMs
- Discover Bank: 60,000+ ATMs
- PNC Bank: More than 60,000 ATMs
- Bank of America: 15,000 ATMs
- Chase Bank: 15,000 ATMs
Another method is to get cash back in stores by using your debit card at checkout, which eliminates any ATM fees. Some banks may also reimburse other banks’ ATM fees, saving customers a large amount of money.
FAQ
Q1. Why are ATM fees so high in the USA?
ATM fees are high because banks are increasing surcharges, inflation is increasing costs, and fewer people are using ATMs now.
Q2. How can I avoid paying extra bank fees?
You can avoid bank fees by using in-network ATMs, choosing low-fee accounts, setting balance alerts, or maintaining a required minimum balance.
