ATM fees could be two-fold. Your bank might charge a fee for using an out-of-network ATM and the ATM owner could charge you an additional fee for the convenience.
In an ideal world, I would use any ATM I please and not pay a penny!
You can, if you live in Netherlands or India! What about the US? This might sound too good to be true, but there are a few banks that provide this convenience.
I chose one that I believe, gives the best bang for the buck!
- You’ll need to open a checking account but there is no minimum balance requirement
- Opening an account is quick and easy. You open the account online but you’ll need to mail or fax your signature
- There are no monthly fees
- You get free checks for life, not just the first box
- Free online bill pay
- No fees for ACH push or pull
- You can even withdraw cash outside the US (there is a 1% transaction fee but then this is better than the 2-3% CC companies charge)
- Any ATM fees charged by the ATM owner is reimbursed at the end of the month
- You earn a very good interest (0.50%) on your balance (in your checking account when most banks don’t pay anything or paltry interest like 0.1%)
- You can close an account without any hassles (How do I know? I closed mine and re-opened. Both were easy and quick)
The bank I’m referring to is Ally. Seriously, I don’t know what’s not to like! If there is a better bank that offers all this and free ATM withdrawals, I’d like to know! Now if only Ally had an iPhone app..!
Here are some other ways you can withdraw cash without a fee, in case you don’t like Ally’s GM affiliation:
- Cash back on your debit card purchase.
You lose the rewards you might otherwise get had you used a credit card
Cash withdrawal limits are lower
- Cash back via Discover.
You have to remember to pay it back in full by the end of the statement cycle to avoid fees.
Not all merchants accept discover
- Using your big banks’ ATM.
You get 0 or very low interest rate on the money sitting in your checking account
- ATM reimbursements: Some banks allow for a set number of withdrawals for free or reimburse up to a certain amount in ATM fees
You have to keep track of your limits
And finally, in case you didn’t know, a cash withdrawal using a credit card from an ATM comes with hefty fees and penalties and is not usually worth the convenience. (That includes Discover as well. The cash back is free only when you purchase something and not use an ATM! Check out this post for a more detailed explanation).
Other Banks That Offer Free ATM Withdrawals
- USAA offers free, limited ATM withdrawals nationwide. USAA does not charge a fee for the first 10 ATM withdrawals and refunds up to $15 in ATM fees every month
- Fidelity offers free ATM withdrawals when you open a mySmart cash account linked to your brokerage account. This is even better a deal if Fidelity is your broker since ATM fees are reimbursed next day instead of end of month like Ally. But you need to have a brokerage account
- Schwab Bank High Yield Investor Checking account when linked to your Schwab brokerage account, offers free ATM withdrawals as well. Great deal if your primary broker is Charles Schwab
While banks are considering doing away with free checking altogether, it is good to know that there are at least a few banks that still think good service is important.