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Q: Banks with no atm fees ( Answered 5 out of 5 stars,   3 Comments )
Subject: Banks with no atm fees
Category: Business and Money
Asked by: severisth-ga
List Price: $2.00
Posted: 31 Dec 2002 09:04 PST
Expires: 30 Jan 2003 09:04 PST
Question ID: 135529
What national banks do not charge atm fees?

Compass bank is the only one I've heard of doing this.  I'm going to
support the cause by moving my account from Bank of America to one of
these no atm fee banks, but would like to know what my options are
Subject: Re: Banks with no atm fees
Answered By: snapanswer-ga on 31 Dec 2002 12:40 PST
Rated:5 out of 5 stars
Since they have few or no branches, most national online banks do not
charge ATM fees.  In addition to that, online banks often offer
customers a higher interest rate for their holdings.

Below is an excerpt from this article:
Bankrate: "Online banking still a better deal, but not by much" By
Laura Bruce

"...85 percent of Internet banks don't charge their customers for
using another bank's ATMs, while 88 percent of traditional banks do
charge customers for using non-bank ATMs.

And most Internet banks, 62 percent, reimburse their customers for
surcharges assessed when using another bank's ATM. This number has
stayed fairly consistent for at least the past year."

This excerpt is from another Bankrate survey article:
Bankrate:  "Online vs. offline checking accounts" By Michael D. Larson

"Online accounts blow the competition away in just about every
category. The average yield on interest-bearing Web accounts was 3.85
percent in the most recent survey -- more than triple the 1.17 percent
average among traditional interest-paying checking accounts. Someone
with $5,000 to park in an online account would have $5,193 after a
year, almost $150 more than any chump foolish enough to stash money
away at a bank down the street...

'The clear advantage of Internet checking accounts over those of
traditional brick-and-mortar banks are higher yields, a higher
proportion of free accounts and much lower balance requirements,'
McBride wrote.

Online banks make it much cheaper for customers to get at their money
electronically too. Only 8 percent of offline banks allow account
holders to make withdrawals at ATMs they don't own without charging a
fee, where as 88 percent of online ones do. A majority of the Web
banks reimburses customers for surcharges assessed by ATM owners too.
Most cover four charges a month up to $1.50 each."

When you consider that the national average for Interest Checking is
0.35% and the national average for Interest Savings is 1.16%, these
offerings compare favorably, in addition to their lack of ATM fees. 
Here's a list of some of the best known online banks without ATM fees:

Etrade Bank (1.21% - 1.41% Interest Checking)

NetBank (1.51% - 2.10% Interest Checking)

First Internet Bank of Indiana  (1.54% Interest Checking)

I was going to list ING as well, but, I don't think they offer ATM
cards (or there is not indication on their web site that you can use
the ATM).  Still they may have a product that you want to explore
further, to link to whichever ATM account you open.
ING (2.25% Interest Rate for Orange Savings Account)

You can find an excellent comparison of rates at

For a longer list of banks without ATM charges (both online banks and
"brick and mortar" banks, you can find it for your market here:

Clarification of Answer by snapanswer-ga on 31 Dec 2002 19:26 PST
You make a fair point.  Perhaps my error was in trying not to overly
distinguish between online banks and "other" national banks.  However,
in re-reading the answer, it does seem to focus on online banks... so
a stronger opening sentence might have helped.  I hope it didn't cause
too much confusion.

I'm happy that you found a bank from the list that meets your needs...
say goodbye to those pesky ATM fees!  In addition, I hope you find the
rate comparison tools at helpful.

Thank you for the positive rating... and Happy Banking!
severisth-ga rated this answer:5 out of 5 stars
Thank you!  I like those online banks.  I will probably open an
account with NetBank based on what I've read so far.

As constructive criticism, I think the answer would have flowed much
better if it started it off with a sentence stating the conclusion,
rather than jumping straight into the supporting evidence.  e.g. "Have
you considered an online bank?" as the first line.  Do you


Subject: Re: Banks with no atm fees
From: mads3-ga on 31 Dec 2002 10:51 PST
USAA will reimburse you for any ATM fees you incur (up to $1.50 per
transaction / up to 10 a month)

You have to meet eligibility requirements to join, though (Have served
in US Military, or be related to someone who has)
Subject: Re: Banks with no atm fees
From: mister-ga on 31 Dec 2002 10:56 PST
Subject: Re: Banks with no atm fees
From: severisth-ga on 31 Dec 2002 14:29 PST
Doesn't look like I qualify for USAA, and I ran into the same problem
as Snapanswer on ING - no reference to a checking account.  Did I
maybe miss it?


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