ATM charges $3 to give you $1
A crop of new machines that dispense small bills and even coins could end up costing customers much more in fees.
A crop of small-bill ATMs is sprouting up across the U.S., but consumers could end up spending more in fees than they withdraw.
JPMorgan Chase (JPM) has installed as many as 400 ATMs that dispense bills in denominations from $1 to $100, while PNC (PNC) has upgraded more than half of its 7,200 ATMs to dispense $1 and $5 bills, reports CNN.
While the ATMs are free for customers of the banks, consumers who use an out-of-network ATM will face the same fees as someone who takes out larger amounts: $3 for out-of-network customers, plus potentially an additional fee of about $1.60 from the customer's own bank.
That might hit some of the banks' customers hard, especially those most likely to use the new feature: consumers with small account balances.
The banks want to appeal to customers with low-income account balances, or those who might want to withdraw less than $20 or an amount between $20 to $40, Bankrate.com senior financial analyst Greg McBride told CNN.
"Particularly in difficult financial times when peoples' account balances have been lower, not having to withdraw more money than you really need is helpful," McBride said.
Some of Chase's new machines will soon dispense coins. The bank plans to pilot that service, and then expand it across the country.
For the bank, the benefit is increased efficiency and less need for additional staffing, Chase's head of branch innovation told CNN. He described the machines as "next-generation ATMs or new teller platforms,' which include capabilities such as paying credit card bills.
While the ATMs might offer more flexibility, consumers might want to make sure they're sticking with their own bank's ATMs when taking out a few dollars for lunch -- otherwise, that $5 sandwich could end up costing upwards of $8.
More on Money Now
| Tags: | Banks |
Ban that Fraud Street Ponzi Scheme.
How dare business owners use other peoples money to expand their companies. Since they are so smart and independent and don't need anyones help to prosper and grow their business(s), why is it that they are always seeking everyone elses money? HYPOCRITES!
If you are all so smart, independent and proficient,.... DO IT ON YOUR OWN! Expand your business(s) with your OWN money and stop BEGGING for everyone elses money. GREEDY AND FRAUDULENT SCUMBAGS!
I think this is a great idea, but the bank and/or this article is pitching it all wrong. It's not just for customers with a bank balance of less than $20. I frequently have to go through the drive-thru teller window at the bank and write myself out a check to cash in order to get ones, five, or tens because my kids need $6 for a field trip or $12 to pitch in for the holiday party at school. It's not the teacher's job to make change for all the parents in class who just have a $20. How many times have you been at the grocery store, or behind someone at the grocery store asking the cashier to break a twenty? Why is it the grocery stores responsibility to order extra cash to meet our need for small change? And why would I want to waste money buying a pack of gum when all I really want is the change from said pack of gum?
Once when I had absolutely no cash, I picked my son up from school to learn that he'd lost a tooth so I had to write a covert note to the drive-thru teller at the bank when withdrawing money to make sure that she gave me back some of my cash in ones so that I could be tooth fairy for the evening without my son waking up to a pile of nickels. In cases like this it doesn't matter how much money you have in the bank if your kid's pillow isn't set up to accept credit cards.
I also always try to have cash on hand so that I can tip appropriately. When we go on vacation or my husband travels for work I always go to the bank to get extra fives for housekeeping, etc so that I don't have to go to the front desk for change all the time or waste money at the gift shop by breaking bills. Having correct change IS an important part of smart budgeting. I'm glad I'm a Chase customer.
DATA PROVIDERS
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Trending NOW
- 1.gld
- 2.money control
- 3.live stock quotes
- 4.slv
- 5.qqq
- 6.goldprice.org
- 7.tlt
- 8.ewj
- 9.treasuries forum
- 10.nok
About moneyNOW
MoneyNOW brings users smart, original and entertaining takes on the latest business and investing topics that are buzzing on the Web.
RECENT POSTS
Analysts estimate the impending royal birth will bring a $400 million boost to the UK's struggling economy.
- Farewell, telegrams: The last one is coming soon
- Morning coffee just killed your creativity
- Western wildfires raise the question of who pays
- 'The Wolf of Wall Street' is set to prowl again
- What vintage aircraft fly on: Donations, enthusiasm
- Obamacare surprise: Young people want coverage
- Urban Outfitters pulls drug-themed gear
- Donald Trump rakes in millions selling name to world
- EA's Simpsons game triggers gun fans' ire
MARKET UPDATE
U.S. equity futures trade sharply lower amid cautious overseas action after yesterday's comments from Federal Reserve Chairman Ben Bernanke were interpreted as a hawkish warning of an impending modification to the Fed's asset purchase program. The Fed Chairman's statement was coupled with a caveat, saying the economy must continue showing improvement before modifications can be made, but it appears ... More
More Market News
TOP STOCKS
Plus, after much ado, Softbank is oh-so-close to acquiring Sprint.
MSN MONEY'S
- Shared
- Commented
- Viewed
