4 Easy Ways to Save on ATM Fees
Posted by Gail | Filed under Money Management, Smart Shopper
Banking machines sure are convenient. So convenient, in fact, that some dopes spend scads of money on fees. Then they turn around and whine about not having any money to save. Dang it!
Often when I’m rifling through some dude’s or dame’s bank statements, I’ve got a highlighter pen in hand and I’m circling the money being wasted on bank fees. Inevitably I find it for ATM withdrawals: the $20 transaction that turns into $21.50. I’ve seen bank statements with $50, $70 or $90 in bank fees, mostly caused by overuse of ATMs. And these are the very people who claim they can’t find $5 a week to save.
What is with people using ATMs like a wallet? I’ve seen people go to the banking machine two and three times in one day, paying anywhere from $1.50 to $4 to get their hands on a twenty. Lord love a duck!
Want to save money on ATM charges? It isn’t hard. Sometimes it takes a little planning, sometimes a little self-control. Always it takes the desire to not waste money on stupid stuff.
Use your own bank’s ATM. Hardly rocket-science, right? So why don’t people walk the extra 500 metres to get to their own bank’s machine? Lazy? Or just stupid? Or is it that the ten-minute walk isn’t worth the $1.50-$3.00 you’d save?
Take out enough cash for a week at a time. Or two weeks, if you have enough self-control and won’t blow through the money. The less often you have to visit the ATM, the less you’ll have to pay in account fees. Plan ahead and you can have what you need at home, and carry only what you need in your wallet.
Opt for cash back. If you run short, instead of hitting the ATM, ask for cash back while you’re out shopping with your debit card.
Choose a bank or account package that eliminates ATM fees. Yes, they do exist. You might have to do some shopping around, but that’s got to be worth the hundreds a year you could save. And the larger your bank’s ATM network, the more likely there will be one where you are.
Don’t confuse a credit card advance with a debit card withdrawal at the ATM. If you stick your credit card in an ATM and ask for cash, the machine will give it to you. But that’s a cash advance, not a cash withdrawal. And the moment the money hits your hot little hands, your credit card will start charging you interest. Never mind the hefty fee that often comes with the cash advance.
If you are willing to spend so much as a dollar in ATM fees, don’t tell me you don’t have enough money to save or do anything else you want to do. Paying ATM fees is a complete waste of your money. STOP IT!
October 2, 2012 at 6:36 am
Sometimes just taking a moment to stop and think can save money. A few weeks ago I was going to my mother’s house for a visit. She needed some money until she could get to the bank.
Most of my banking is done at Scotiabank. Unfortunately, there isn’t a branch between my house and hers. However, there is a TD bank. I have a line of credit with them which I’ve rarely used.
Rather than mindlessly putting my card in the ATM to withdraw money from my Scotiabank account, I went to the teller. I took a few hundred dollars from my line of credit account. I paid back the balance as soon as I could. The total cost to take the money? Eleven cents (cheaper than the gas to go to my bank).
Before I started watching the shows and reading Gail’s books I wouldn’t have bothered about a few dollars here and there. I now pay attention to my money. The difference it’s made to my bank account is amazing.
THANK YOU, GAIL.
October 2, 2012 at 6:47 am
I switched to PC Financial and pay no fees. I don’t go into overdraft anymore, so I don’t have overdraft protection—saves me 4 dollars a month. Not only did I have interac fees with previous bank if I went over a limit of transactions, I had to pay 10.95 for the ‘privilege’ of banking with them! Good riddance, I say. No more bank fees!
October 2, 2012 at 6:57 am
I’ve never paid ATM fees or taken a credit card advance. That would be just giving money to the bank. I choose not to do that.
October 2, 2012 at 7:10 am
AMEN! I never thought about the cash-back option, so another great tip from Gail!
The only time I’ve ever paid ATM fees were when I was travelling in an unfamiliar place and even then it was pretty rare as I always try to make sure I have enough cash on hand in those situations.
The last bank fee I paid was a fee for a money order in Euros. Otherwise, I haven’t paid a bank fee since I paid off my mortgage four years ago. My monthly fees are waived because I keep enough in the account to waive the $12.95 fee.
October 2, 2012 at 7:17 am
Sometimes people just don’t stop and think about the money they are spending needlessly. They forget that they have a choice. I am sure many don’t even look at what their fees are and just think it is a part of life. Same thing with buying lunches at work (pet peeve). I work with a lot of young people who complain about lack of money, yet buy their lunch every day and sometimes breakfast at Tim’s, as well as buy pop, chips, chocolate bars at the vending machine and smoke. I must be a novelty to them – bring my own thermos of coffee, make my lunch, walk at lunch instead of smoke and the rare times I buy chips at vending machine buy the ones for .50 with older dates on them. Ha Ha
October 2, 2012 at 9:11 am
I agree with you Gail on this! I hate bank fees. This past weekend a friend was in town and needed cash..but her bank machine was not in sight. I suggested we can go hunting for one rather than pay an ATM (no bank affiliation) just for 20 bucks when all she needed was $3. I lent her the change and later when we were in an area that had her bank machine. I basically said to her that the ATM would charge you 1.50 to 2.00$ and then your bank would charge you another $1.50. So you could pay up to 3-3.50 for just $3 of your own money? Thanks to Gail not only do I not pay fees but I also try to spell that out to others. And Cash back makes so much sense as well! Grocery stores were my first experience with that and it is a good way to go. One purchase ..and if you are at a bank that counts transactions that can really save you on the trips.
October 2, 2012 at 9:20 am
This is one thing that took me awhile to drill into my daughter. She was forever taking small amounts of cash out of ATMs not associated with her bank. I think I might have broken her of that (though now she’s out of country so she can’t do that). Me, the only time I’ve used ATMs from a bank that isn’t my own is when I’m out of Canada. And I take enough that it the fee makes it worthwhile. I also have a bank account where all fees are waived for a variety of things (including my bank’s side of non-bank ATM fees).
Over the years, I’ve occasionally used the cash-back feature, but I mostly take out $500 at a time and hide it in my house so that I can got to my “home ATM”, LOL, to get more cash as needed.
October 2, 2012 at 9:32 am
I have to say I really don’t understand how people would pay these fees. I think in my 30 years of having a debit card I have paid a fee twice, I was really stuck.
October 2, 2012 at 11:39 am
A decade ago when I was still in the habit of using cash I always got our week’s cash as a cash back on the grocery order. They always seem to have plenty of cash and don’t mind. For many years now, we just simply don’t use cash so we only use an ATM to deposit an occasional cheque and once a month when my son reimburses us $35 for his portion of our family cell plan.
Now that we’ve gone all frugal and preplan virtually every cent we need to spend months in advance, we’ve virtually eliminated all cash spending. Turns out anything that was kept in the budget as necessary can be paid by credit card except for the mortgage, property taxes and hydro bill. The only things I can think of that I can’t do with my credit card are the vending machine at work and the french fry truck parked near my office. Neither is a place I should be spending my money anyway! All other monthly recurring bills go directly to the card (phone, cell, internet, alarm monitoring, insurance).
I just checked my wallet and currently have 7 cents in there. I have no idea how long it’s been there and have no plans to go to an ATM to get more. This week’s spending plan was the usual groceries, gas for both vehicles plus an October bus pass for my son. Anything scheduled to happen on the first of the month (property taxes, alarm monitoring, internet etc went directly onto the card where possible, otherwise is was automatically pulled from our bank account. Everything else goes on the card, I get my Aeroplan points toward next summer’s holiday and no ATMs were harmed in the process.
I completely agree with Gail’s system of cash in jars/envelopes to get well established with setting spending boundaries, but once you are in that mindset I’ve found I spend only what was planned (or less) and get the benefit of free flights to Europe every summer. Oh, and never any ATM fees!
October 2, 2012 at 12:28 pm
I was one of the first to get on board when Internet banking, ATM’s etc first came on to the scene.
Back in those days they encouraged you to switch over with no fees. We know how that works the old bait an switch. Soon they had you hooked and then starting levying fees.
We need to remember banks are in business to make money. So am I my by running my own personal company. Frugal Guy with Balance inc. lol
I now deal with the HSBC as premier customer. No ATM fees period or any other.
I take money out in Canada, Europe etc an there is no fees.
There is one hitch you need to have a 100k within the HSBC. I have that money in there Discount Brokerage Arm.
This setup for me is very appealing. Some might say yah thats great if you have 100k.
I am in that position because I have been a mini Gail for many years.
I know the value of a dollar!
Frugal Guy with Balance
October 2, 2012 at 1:05 pm
It wasn’t the ATM fees that were biting us, it was the debit fees. Before we went to the cash system we used debit all the time, every time and I didn’t realize that we actually had a limit on our account and once that was passed we would get a service charge every time so this was all adding up pretty quickly.
Now that we are on the cash system we are literally saving hundred’s of dollars every year. Yahoo!
October 2, 2012 at 3:48 pm
If you are a member of a credit union, hsbc, and ing, maybe a few others, they are part of an “Exchange Network” in which you can use any of the banks atms without charge. This is for depositing money, checking your balance and taking cash out. I have used the Network in Vancouver for my bank in Ontario.
Saves on fees even when you are not near your bank.
I usually use the cash back feature on my debit card.
October 2, 2012 at 4:02 pm
I love being able to get cash back at large retailers, saves on how many transactions I use. Otherwise I use the atm at my bank.
I once used another banks atm about 4 yrs ago sucked it up paid the $1.50 fee it told me it was charging and then was shocked when I found out my bank charged be $1.50 as well! paying $3 was ridicolous when all I took out was $20 and the worst part was my bank was within eye sight, I just didn’t want to be bother to the person I was with.
Haven’t done that since, learned my lesson fast.
October 2, 2012 at 4:14 pm
I had no idea so many people still use cash. I pretty much use a debit card for everything. I maintain a minimum balance in that account, so the monthly fee is waived. I don’t buy a lot of stuff, but sometimes need cash for school fees, allowances, etc. I take out cash every 2 weeks on payday for those type of things.
I find I will buy little (unnecessary) things easier if I have cash on me, versus putting that purchase on my debit card, so it’s good for me not to carry much cash.
October 2, 2012 at 4:52 pm
I pay unlimited amount of transactions for $12.95 at ATB. I need a physical bank to go into to get my “budget” every two weeks. I take my cash out then and put it in my billfold with various compartments (pencil cases) work great to divide my cash into all 5 categories.
Gail you are awesome…
October 2, 2012 at 7:18 pm
Just had a visit with my bank oerson last week…. turns out I was going over my limit of transactions every month and did not know it. I did not know that all those automatic debits I have built in for every conceivable bill excpet my variables were costing me cash… up to $25 per month. So, I now have an all-inclusive plan which yes does cost me a few bucks a month. I will have to look into my local no-fee bank Presidents Choice — but what a pain to get all my bils switched ver. I also inquired about a lower interest rate, but apparently I have the lowest possible rate currently available (5.9%) even though my credit score rocks. I instead got a no-fee 0% intro rate credit card to do a balance transfer so I can pay off my credit card that much faster — debt free by 40 is the goal so far so good.
October 3, 2012 at 6:47 am
@ BB – if you don’t mind me asking, what credit card do you use? Is there a fee and if so, how much?
I am looking for a card that will provide benefits for travel but doesn’t have a ridiculous fee – anyone have any suggestions?
October 3, 2012 at 9:30 am
@ mees – not all fees are so straightforward. Capital One offers a card that charges $120 annually (no fee for additional card though) but gives a 35,000 mile bonus on signup (you can immediately convert that to $262 cashback or $350 travel credit, if you want) and 10,000 miles on each anniversary date (equal to $75 cashback, or $100 travel credit). This significantly defrays the cost of the card, and is not immediately apparent. The travel benefits this card offers is ridiculous (travel aspire capitalone). However, you have to have a good income and stellar credit history (not saying you don’t, just being clear).
October 3, 2012 at 1:14 pm
As someone who would rather spend my money on other things. I once walked three blocks in Downtown Vancouver in heels to save the $3 the machine was going to charge me plus the $1.50. All because the store wouldn’t do a debit for $5 to buy some drinks. Needless to say I told the store owner that they should start paying for the debit transaction or they would lose a lot of business. They lost mine that day.
October 4, 2012 at 7:32 am
I have my accounts with PC Financial, what are these things called ‘bank fees’ you keep talking about?
October 14, 2012 at 1:24 am
learn about credit unions and shared branching they do that i can use my debit card at another credit union that is in the shared branching with my bank at there atm and get charged no atm transaction fees. go to a grocery store buy a can of pop or somthing small and ask for cash back i belive you can get up to 40.00