Chase Tests $5 ATM Fees

A number of banks are testing out higher ATM fees and Chase is at the top of the list with a $5 fee for non-customers in Illinois. According to CNN Money, the bank is making an effort to compensate for the costs associated for running its network of ATMs around the country.

Chase Pays a High Price to Offer Convenience

Currently, JP Morgan Chase spends around $200 million per year to pay for its network of 16,000 ATMs across the country. In addition, the bank is said to have paid $400 million to build the network.

The high costs associated with building and running the ATMs has resulted in the bank trying to recoup some of its money, and the recoup is coming in the form of higher ATM fees.

So far, Chase has not increased fees for all of its ATMs yet. Instead, it’s testing how customers will respond to paying the higher cost in conjunction with their own bank’s out-of-network ATM fee, which could reach as high as $3.

For now, it is only testing the higher fee in Illinois, along with a $4 test ATM fee for non-customers in Texas.

Avoid High Banking Fees to Save Money

If you are in a financial crunch and want to save as much money as possible, consider the following ways to sidestep high banking fees:

• Avoid out-of-network ATMs: If you know that an ATM charges high non-customer fees, locate an ATM in your network, make sure to withdraw enough to cover costs at your bank, write checks or use your debit card.
• Join a credit union: You could also consider joining a credit union since most belong to the same ATM network. This allows you to use any ATM owned by a credit union.
• Don’t overdraw your account: If you find that you must use an ATM that’s out of your network, make sure you have money in your account to cover the costs so that you don’t rack up overdraft fees.

There’s no crime against banks raising ATM fees to cover their own costs, but as a cost-conscious consumer, it’s a good idea for you to work just as hard to protect your own assets. So if you have not planned for out-of-network ATM fees in your budget, it’s a good idea to avoid them altogether.