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Philly ATM fees are one of the lowest, but overdraft fees are the highest

Philadelphians pay $32.70 on average if they overdraw, and $4.31 when they use an out-of-network ATM.

This 2018 file photo shows an ATM in Philadelphia, where a new study found ATM fees are among the lowest in the country.
This 2018 file photo shows an ATM in Philadelphia, where a new study found ATM fees are among the lowest in the country.Read moreMatt Rourke / AP

Consumers in the Philadelphia region face the highest bank overdraft fees in the country and one of the lowest ATM fees, a new study found.

Philadelphians pay $32.70 on average if they spend more than they have in their checking account, an amount higher than the national average of $26.61, according to Bankrate’s annual Checking Account and ATM Fee Study.

But when they need to get cash from an out-of-network ATM, they pay less than people in most other metropolitan areas.

Here are other takeaways from the Bankrate survey.

ATM fees rise but are relatively low in Philly

ATM fees in the Philadelphia region are $4.31 on average, the second lowest in the country after Boston, the study found. The dollar amount includes the fees charged by a consumer’s bank and the surcharge imposed by the out-of-network ATM owner.

Across the country, the total cost of an out-of-network ATM withdrawal has reached a record high of $4.73 on average. That cost includes the surcharges imposed by ATM owners, which was $3.15 on average, a one cent increase from last year and among the highest charge in the past 25 years.

“ATM fees are biting harder than ever as the cost of out-of-network withdrawals hits a new record high,” Greg McBride, Bankrate’s chief financial analyst, said in a statement. “But with less need for cash and expansive ATM networks that make it easier than ever to stay within network, the fees are easily avoidable and need not be a frequent drain on your bank account.”

About 38% of banks nationwide offer free out-of-network withdrawals, a slight decrease from the previous year.

The cost of using an out-of-network ATM has increased steadily over the past 25 years, fueled by a rise in surcharges. In 1998, it cost less than $2 on average to take money out of an ATM not owned by your bank.

Overdraft fees plunge, are highest in Philly

Overdraft fees nationwide decreased 11% between 2022 and 2023, to $26.61, while non-sufficient funds fees have decreased 25% to to $19.94, a 25-year low. (A non-sufficient funds fee differs from an overdraft fee in that the purchase was not able to be covered by a linked account or overdraft protection.)

Philadelphians, meanwhile, pay $32.70 on average if they overdraw their account. That’s the highest average in the country, with Pittsburgh coming in second at $31.30.

Banks are moving to reduce or eliminate these fees, but most still charge them. They can be as high as $38, McBride said.

Ways to save

  1. If you take cash out often, choose a bank with a large ATM network to avoid fees. Capital One, Citibank, Discover, and PNC have the largest networks, followed by Ally, Chase, and then Bank of America.

  2. To avoid fees, get cash back at stores when you make a purchase with your debit card.

  3. Choose a bank that reimburses out-of-network ATM fees.

  4. Opt out of overdraft protection. (Beware, though, that purchases that would otherwise overdraw your account will instead be denied.)

  5. Link a savings or other account to your checking account, so money can be moved to the checking account before an overdraft were to occur.

  6. Turn on low-balance alerts to avoid overdrawing.