The Surprising Reason This Hated Bank Fee Is Soaring
Traditional banks still play a major role in Americans' financial lives, and tens of millions of customers still have basic checking and savings accounts that are important in helping people handle their daily finances. As consumer preferences have shifted, though, banks have had to adjust the way they make money. The result has been a big boost in a much-hated bank fee -- even as many people discover that their need to pay it is going down rather than up.
The latest annual survey of the banking industry from Bankrate shows that ATM fees climbed to a new record in 2017, marking the 11th year in a row that the typical cash machine fee hit unprecedented levels. Nearly all banks offer their own in-network ATMs free of charge to their customers, but if you try to get cash from a different ATM, then you'll have to pay for the privilege. In fact, you'll typically have to pay two fees: one to your bank and another to the bank or other financial institution that operates the ATM.
Bankrate said that the total amount for out-of-network ATM fees rose to $4.69, up almost 3% from the previous year. That breaks down to a $2.97 average fee from the company owning the ATM, and $1.72 from the customer's own bank as a surcharge for going outside of its ATM network.
Source: Fool.com
