Alert for NJ ATM users: Pesky fee reaches 26-year high

💲 Fees have risen for the fourth straight year

💲 The rise may be linked to weaker dependence on ATMs

💲 There are simple ways to avoid the fees

Need some cash from a random ATM? You may pay more than ever before to access your money.

A 2024 analysis by Bankrate finds the combined fees you can pay for withdrawing cash from an ATM that's not affiliated with your bank have risen for the fourth consecutive year.

The combined fee currently sits at $4.77.

Most of the cost comes from the ATM owner. The rest of the charges — which occur on about 61% of transactions — come from your bank.

This is the 19th record high recorded by Bankrate. One factor tied to the constant increase is the fact that fewer out-of-network ATM transactions are taking place, according to Greg McBride, chief financial analyst for Bankrate.

"Some of that's because people are being a little more diligent about staying in network and avoiding fees," McBride said. "Some of it's just because we use less cash, we don't go to the ATM as often."

SEE ALSO: More NJ towns saying 'no' to plasticware, condiments

To save these precious dollars, you're being advised to grab cash from ATMs that are affiliated with your bank — some smaller banks may be tied to a nationwide ATM network. Or, to avoid an ATM fee, you can remember to use the cash-back option when using your debit card while on other errands.

Bankrate gathered its data in May and June of this year, using information from hundreds of financial institutions.

Spending fees

According to Bankrate's analysis, banks are being kinder with customers who try to spend money they don't actually have.

In 2024, 36% of accounts do not charge a fee when the bank has to block a transaction due to non-sufficient funds. That's up from 30% in 2023, according to Bankrate.

Meanwhile, the average non-sufficient fund fee fell 11% over a year's time, to a record low of $17.72.

Overdraft fees are more common. They occur when a bank temporarily covers a transaction that spends more than one's available balance.

Nearly all accounts still charge an overdraft fee, according to Bankrate. The average fee increased 1.7% since last year, to $27.08.

“With 24/7 mobile account access, it is important to monitor your available account balance — not just the balance in the account but the amount available for immediate withdrawal — before initiating transactions,” McBride said. “ Link your checking account and savings account so any shortfall is covered by your own funds, not the bank’s.”

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