Financial IQ: Want cash from an ATM?

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Financial IQ Philippines Quick Hit(s):

When possible, withdraw directly from your bank's ATM machines to avoid inter-bank ATM fees.  The fees add up, if done often.


ATM fees are on the rise at some of the country's biggest banks.


Chase, for example, is testing out $5 fees for non-customers. That means if you stumble upon a Chase on your way to dinner and decide to take out 20 bucks, you'll pay a 25% fee. And that doesn't even include what your own bank charges you for going out of network, which is typically around $3.


JP Morgan Chase is currently testing the $5 ATM fee in Illinois and a $4 ATM fee in Texas -- both for non-customers who use its ATMs -- to see if they bring in enough revenue to introduce nationwide, according to sources familiar with the tests. A Chase spokesman declined to comment.


Out of the bank's network of 16,000 ATMs, more than 20% -- or about 3,600 -- are located in these two states. Chase spent an estimated $400 million to build the entire network and pays $200 million a year to run it. So the bank is making non-customers pay a significant amount for the convenience of using this large network.

http://finance.yahoo.com/news/Want-cash-from-an-ATM-Pay-a-5-cnnm-2010047842.html?x=0

Related articles

• Consumer Pain: Banks Tack On $5 ATM Fees (abcnews.go.com)
• How to avoid $5 ATM fees (cbsnews.com)
• ATM Fees Rise as Banks Feel Funding Squeeze (dailyfinance.com)
• WHAT! JPMorgan Is Testing $5 ATM Fees (JPM) (businessinsider.com)