January 28, 2008 - Economic news since the beginning of the year has not been good. Unemployment is up, the dollar is weaker, and getting a home mortgage is more difficult than it has been in years. The news has left banks hunting for ways to increase their revenues, and they appear to have settled on at least one target. Many banks are now increasing their ATM fees.

JP Morgan Chase has increased its ATM fees to $3 per transaction when non-bank customers use their ATMs. The same is true for Bank of America and Wachovia.

ATM fees already generate $4.4 Billion annually to banks. The increased fees will undoubtedly increase bank revenues further. Bank customers should also note that some banks have even begun to charge fees to their own customers.

Nationally, ATM fees are now averaging $1.78 per transaction; the highest ever. It is quite likely that they will continue to rise. It is also likely that with a weakening financial outlook, banks will begin to increase other fees as well. Consumers should be looking closely at fees that may be associated with checking accounts, credit cards, overdraft protection, and nonsufficient funds.

To avoid fees, you should always attempt to use an ATM from your own bank. Some smaller banks and brokerage houses also offer to refund ATM fees. Anyone interested in taking of advantage of such an offer should review their account statements thoroughly every month to insure that the refunds have been made.

Consumers should be aware that by using your own banks ATM may not mean that no ATM fees are assessed. One fee that some banks levy against their customers is a "transaction denied fee". This can happen if you try to withdraw more money that your bank allows on a daily basis. For instance, if your bank sets a limit of $300 per day for ATM withdrawals, and you attempt to withdraw $400, you could be hit with such a fee. This means that it will pay you to know the limits your bank places on your accounts.

by Jim Malmberg

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