How to Avoid Those Ridiculous ATM Fees

I think it's safe to say that very few people today have never used an ATM. I'm sure you're quite familiar with those nasty little charges. If you're not careful, those charges can add up quickly. Although banks will not disclose how much profit they make from user fees, it doesn't take an expert to realize that ATMs are the banks' cash cows. It's hard to feel sorry for corporations that announce record profits every quarter when they explain the need for these high fees as a way to keep the costly machines in operation. The only way to beat them is by becoming informed consumers. Don't give them more money than you need to. Here are some tips to help you avoid those fees.

1. Stick to your bank's ATM. This is the most obvious tip but sometimes a difficult one to follow depending on where you are. For those who don't know, when you use a competing bank's machine, you're charged twice. You typically end up paying as much as $3.00 in fees (maybe even higher). You should definitely avoid those "white label" machines where you could end being charged even more.

2. Determine your ATM usage and look at the number of locations where your bank has a machine in place. If you're a frequent user, you may want to go with a bank that offers ATMs in more locations. Many credit unions have an agreement in place that allow their customers to use ATMs of competing credit unions without additional charges. This may not apply to all credit unions so buyer beware.

3. Select an account that offers a maximum number of free transactions that fits your needs. The only catch is you will likely need to maintain a minimum account balance every month or else you'll be hit with a monthly service charge.

4. Reduce frequent trips to ATMs by taking out larger amounts of cash. Don't pay $1.50 to $3.00 in fees to withdraw $20. However, this strategy requires you to be more diligent with your money management.

Remember, big banks only care about growing their profit, regardless of what they may want you to believe. Don't make it easy for them. Follow these simple tips and you'll be able to keep your money where it belongs.