Out-of-network ATM fees hit record as overdraft charges remain costly

The average out-of-network ATM withdrawal now costs $4.86, while monthly account charges and overdraft penalties continue to erode household budgets.

Bank fees may seem small in isolation, but they can quietly take a meaningful bite out of household budgets. Bankrate’s latest fee survey shows that the cost of using an out-of-network ATM has reached a record level, while overdraft charges remain stubbornly expensive even after a modest decline. At the same time, some account requirements have become harder to meet, pushing more customers towards monthly charges unless they keep higher balances or arrange regular direct deposits.

The most visible pain point is the cash machine. Bankrate says the average out-of-network ATM transaction now costs $4.86, once the surcharge from the machine’s owner and the fee charged by the customer’s own bank are added together. That means a weekly withdrawal from an out-of-network machine can add up to hundreds of dollars over a year. Separate industry guidance from MPS suggests the surcharge alone is now running at roughly $3.25 on average in the US, with higher prices often found in busy city locations.

Overdrafts remain another costly trap. Bankrate says the average overdraft fee slipped slightly to $26.77 in 2025, while the average nonsufficient funds fee fell to a record low of $16.82. NerdWallet’s analysis puts the typical overdraft charge in the same broad range, and notes that banks increasingly vary in how they apply the penalty, with some offering grace periods, transfer-based protection or buffer limits. Centinel Money’s comparison of major US banks shows that posted overdraft fees in 2026 can still range from nothing to $37, underlining how much the cost depends on the institution.

Checking accounts have also become more expensive to keep open in some cases. Bankrate says the average monthly fee on interest-bearing checking accounts has risen to $15.65, and the average balance needed to avoid that fee has climbed to $10,705. Yet many consumers are still sidestepping these charges altogether. Bankrate’s survey found that the typical checking customer has stayed with the same brick-and-mortar bank for 19 years, often because of low fees or simple habit, even though most respondents said they pay no checking fees at all.

For people looking to cut costs, the choices are broader than they once were. Online banks often pair lower fees with higher yields, while credit unions may offer a cheaper alternative for customers who qualify for membership. Regional and community banks can provide more personal service, but they do not always match the fee advantages of digital rivals. The practical lesson is straightforward: check the fine print, ask whether fees can be waived, and move money if your current account is charging more than it should.