Owning a credit or debit is a convenience, but will come with a cost. Yes, ATM cards also charge certain fees for transactions under specified conditions. While some will find that these charges as minimal or almost negligible, their aggregate values can take a toll on our budget and can get us by surprise.
This article will help us understand and minimize these costs and effectively manage our ATM balances:
What are ATM Fees?
ATM transactions are more than just withdrawals and there is so much more that we should know about it. With different dealings featured on a debit card or savings account, we should understand that various ATM fees also exist.
ATM fees are what banks charge us when we do transactions, including but not limited to:
Balance inquiry
Withdrawal from different banks
Intra-bank transactions (Although some banks now offer these services for free)
Below maintaining balance charges
Dormancy fee
How to Avoid or Minimize ATM Fees
1. Withdraw Bigger Amounts
ATMs charge on a per-transaction basis, not on how much you withdraw. A fundamental concept is the higher the withdrawal amount, the lesser the possibility of withdrawing again and paying more machine transaction fees. Learn how to budget the physical cash that you need for a handful of transactions so you won’t have to withdraw frequently.
2. Use ATMs of Larger Banks
Prime banks possess a record of reliable and high success rate transactions, which supports you in planning to withdraw large amounts. These banks also have higher withdrawal limits, offering more room for encashment.
3. Choose the Right Card
ATM fees can vary depending on your card type and classification. Consider applying for a debit card that can cost less, even on inter-bank transactions. This aspect is most helpful if you travel abroad often and rely on your debit and credit cards heavily.
4. Check for Partner Banks
Choosing your bank is just as important as choosing your card. Several banks tie up with local or international banks, thereby reducing transaction fees. Thus, consider applying for a debit card in any of these partnered banks and save from high transaction fees in the future.
5. Open Multiple Savings Account in Different Banks
Owning several accounts in various banks will not help just you organize your finances based on your expenses. It will also provide more channels to withdraw your money without incurring ATM fees or exhausting yourself from searching your bank’s nearest machine.
6. Pay Online
You can also avoid ATM fees when you don’t need to withdraw anything. This is especially true if your transactions allow you to pay online or swiping your card. With businesses and establishments adopting a digital setup, we have better chances of completing cashless transactions.
Overall, owning an ATM or savings account does more good than bad. However, the main reason why they charge fees under acceptable circumstances is that banks are also businesses.
But then again, these fees can be avoided as long as we know how.
