Ways to evade ATM fees

Here, we usually avoid using cash to maximize credit card rewards. However, there are times when cash is necessary, and you may find yourself rushing to the nearest ATM. If that ATM isn’t part of your bank's network, you could end up facing a frustrating fee.

Fed up with ATM fees depleting your account? Here are five strategies to steer clear of them.

Be proactive

It might seem straightforward, but the most effective way to dodge ATM fees is to plan ahead for when you need cash. This approach allows you to access your funds without incurring charges, instead of scrambling at the last minute to find an ATM nearby.

Plan your activities ahead of time. If you’re going to an event that requires paid parking, will they only accept cash? Similarly, at your local county fair, they are likely to take credit cards for some purchases, but you might still need cash for games or snacks.

Furthermore, it’s a smart idea to have some emergency cash on hand. Keeping a few twenties in your wallet ensures you won’t get caught short and end up paying an ATM fee.

Remain within your bank's network

If you know you’ll need cash, using an ATM within your bank’s network is probably the simplest choice. Your bank won’t charge you an out-of-network ATM fee if you use their ATM. While you’re there, consider withdrawing a bit more cash than you think you’ll need to keep an emergency stash on hand.

For instance, if you have a Chase debit card, make sure to locate a Chase ATM to avoid fees. On the other hand, withdrawing cash from a Bank of America ATM with your Chase debit card will incur an out-of-network ATM fee.

Withdraw cash when shopping

When you ask for cash back during a store purchase, you won’t face an out-of-network ATM fee. Just buy something small, like a pack of gum, and use your debit card to pay.

When you’re at the checkout, simply inform the cashier or choose the appropriate button at the self-checkout to request cash back. It works just like an ATM: specify how much cash back you want. You’ll get your needed cash along with your small purchase, all without any fees.

Utilize mobile payments

What if you run out of emergency cash and discover that a merchant doesn’t take credit cards? Before you dash to an ATM, inquire if they accept mobile payments. Sometimes, merchants can scan a card from your mobile wallet, even if they lack a physical card reader.

In that situation, having your mobile wallet ready can help you avoid ATM fees altogether.

Get reimbursed for your ATM fees

Certain banks will refund the ATM fees charged to your checking account. This is an important factor to think about when looking for a new bank, as it can provide reassurance when you need cash quickly.

For instance, the Schwab Bank High Yield Investor Checking account covers ATM fees for transactions within the U.S.

This account is beneficial for international spending as it comes with no foreign transaction fees, and you'll receive refunds for any international ATM fees. Plus, there are no minimum balance requirements or monthly maintenance charges.

Conclusion

To avoid out-of-network ATM fees when you need cash, it's wise to plan ahead. Ensure you withdraw cash from an ATM within your bank's network or request cash back during a retail purchase.

Establishing your mobile wallet or choosing a bank account that reimburses ATM fees are also effective strategies. With these measures in place, you can steer clear of out-of-network ATM fees altogether.