ATMs – Stay away…

Posted by: Live Smart   
June 16th,
2009

unless it is your ATM card issuing bank one and you are 100% sure that you will not be charged any fees for withdrawing money or for any other activity that you needed to do. Sometimes just checking your balance can cost you, so make sure you know all the fees that bank can charge you when using ATM machines ahead of time.

Here is a typical scenario – you need $ 20 or $ 40 cash in your pocket. You go to the closest ATM machine (not your own bank) and you pay $2.00 for the ATM machine owner and $ 2.00 for your own bank for the privilege of getting your own $ 20.00. That is $ 4.00 dollars to get $ 20.00. This is a 20% fee. This is like paying $ 20.00 to get $ 100.00. You get the picture?

So what should you do, if you need $ 20.00 or $ 40.00 cash. There are two prudent ways to do so:

  • go get it from your bank
  • next time you are in convenience store (any store) making a purchase, ask cash back.

There are smart and not so smart ways to get your money out of the bank. Choose the smart way and do not pay unnecessary fees, your hard earned money, to the bank.

This entry was posted on Tuesday, June 16th, 2009 at 2:19 pm and is filed under Money. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

One Response for "ATMs – Stay away…"

Josh

I have to point out that we DO live in a culture of convenience. We have gotten to the point where the oppurtunity cost of going out of our way to do ANYTHING often exceeds the value of doing it, which is why we are so often WILLING to pay that stupid fee. Although, as you say, that can pretty easily be avoided with just a modicum of planning ahead and smart thinking. While I think that it’s unlikely to be worth it (in terms of oppurtunity cost) to go to the bank to make a withdrawal every time you need forty bucks, getting cash back at a store really IS an underutilized way of dodging those fees. I think I’ll have to remember that and start using that more often.