ATM fees have hit a new record high

The average combined ATM fees for an out-of-network withdrawal, which includes the the fee paid to your bank and the surcharge tacked on by the ATM owner, hit $4.77 — its 19th record level, according to a Bankrate (RATE) study released Wednesday.

“If you make an out-of-network ATM withdrawal, expect to pay and pay more than ever before,” said Bankrate (RATE) chief financial analyst Greg McBride in a statement. “Fees have increased again and you’ll typically pay two fees — one to the ATM owner and another to your own bank.”

ATM fees are taken from each transaction when you withdraw money from an out-of-network ATM. On average, banks charge $1.58 when you withdraw cash from an outside ATM. That figure went unchanged from last year, and remains 8% below a peak of $1.72 in 2017.

But ATM owners have continued to raise how much they charge cardholders from other financial institutions who use their machines. In another record, the average ATM surcharge levied by ATM operators is $3.19, setting the 23rd highest level in Bankrate’s 26 years of surveys.

To avoid the cumbersome charges, McBride recommends carrying out cash withdrawals exclusively at in-network ATMs, or asking for cash back when using a debit card. Bankrate’s survey includes 10 banks and thrifts in 25 major U.S. markets.

It’s not just ATMs that are hitting consumer’s wallets. Overdraft fees — the charges that financial institutions impose when a transaction sends a checking account into the red — also rose 1.7% on average from last year, to $27.08. Some 94% of accounts still charge an overdraft fees.

As part of the Biden administration’s crackdown on junk fees, the Consumer Financial Protection Bureau proposed a rule in January to cap overdraft fees at some of the biggest financial institutions in the U.S. The agency said the move would save consumers $3.5 billion or more in fees per year.

In the meantime, McBride said the best way to avoid these fees is to link a checking account and savings account, so any shortfall is covered by personal funds rather than the bank’s.

Consumers are seeing some relief when it comes non-sufficient fund (NSF) fees, which are charged when a customer lacks the funds to cover a transaction. These fell 11% from last year’s $19.94 to a new record low of $17.72, according to Bankrate. More than one-third of accounts don’t even charge an NSF fee.