Survey: ATM, overdraft fees skyrocket

If you have withdrawn money from an out-of-network ATM, you may have noticed you are paying a bit more. A new survey by Bankrate.com found that out-of-network ATM fees increased 5 percent over the past year and are up 23 percent over the past five years.

The average cost of going outside the network is now $4.35 per transaction. The average overdraft fee set a new record high for the 16th consecutive year at $32.74.

When it comes to out-of-network ATM fees, there are two different types that consumers usually encounter. One is the ATM surcharge assessed by the ATM owner and the other is the fee that the bank charges for going out-of-network.

These fees can be avoided, according to Greg McBride, senior financial analyst Bankrate.com.

"These fees are not likely to reverse course anytime soon. Plan ahead as to when and where you make your withdrawals. You can locate nearby ATMs that you can use free of charge. If you're really in a pinch, get cash back at the point of sale," he said.

According to the survey, 38 percent of non-interest checking accounts are completely free, down from 76 percent five years ago. If certain requirements are met, including direct deposit, maintaining a minimum balance and bill pay activity, 95 percent of non-interest checking accounts are free or they can become free. The city with the highest average out-of-network ATM fees is Phoenix which comes in at $4.96. The lowest is Cincinnati at $3.75. As for overdraft fees, Philadelphia has the highest, $34.80, while San Francisco has the lowest at $26.74.

"When it comes to overdraft fees, you can use your 24/7 mobile account access and check your balance before you make a transaction. You can request email or text alerts to let you know when your balance goes beyond a particular threshold," McBride said. "You can also request a link between your checking account and your savings account. That way, if you have a shortfall, it's your money that covers it, not the bank's money."

"You are not hostage to these fees. Button up some financial habits, shop for a better deal," McBride said.