Finding a cost-effective ATM near you isn’t always easy. There may be plenty of ATM machines, but not all of these automatic tellers will give you access to your bank account without tacking on some hefty fees. No one likes paying $3 or $5 just to get a bit of pocket cash or for the privilege of depositing cash into an ATM. To help, here are a few tips and tricks to maximize the ease of use of ATM machines while cutting unnecessary fees.
An ATM, or automated teller machine, is an electronic machine that allows you to perform a range of basic banking tasks. ATMs are designed to provide convenient access to banking services 24/7 and without the need to go into a branch. You can use an ATM to withdraw cash, check your account balance, and deposit cash and cheques.
Some banks and financial institutions use a slightly different term, ABM (automated banking machine), to refer to ATMs.
ATM is short for automated teller machine. Please note that this acronym of ATM is not to be confused with the urban dictionary ‘at the moment’ abbreviation, which is commonly shortened to ATM when used in text or messaging apps.
It’s easy to deposit cash or cheques into your account at an ATM. For instance, it takes seven easy steps to deposit a cheque at an ATM:
If you want to deposit cash at an ATM, the steps you’ll need to follow are largely the same as those outlined above. However, you’ll need to select a cash deposit from the on-screen menu and confirm the amount you’re depositing on-screen once the ATM has counted your money.
The cash you deposit at an ATM will be available in your account. Unlike depositing a cheque, the cash you deposit into your bank account using an ATM is available in your account immediately.
When depositing funds into your account, keep in mind that you will need to find an ATM machine operated by your bank or by a financial institution in your bank’s partner network. Non-partner ATMs will not accept cheques or cash deposits, as they cannot connect with your individual bank account.
The maximum amount you can deposit at an ATM varies depending on your bank. For example, you can deposit up to $500,000 at an RBC ATM, while TD Bank imposes a limit of up to 30 cheques or 50 bills per transaction.
To be sure, check with your bank for details on their ATM deposit limits.
The ATM withdrawal limit in Canada also varies between banks. These limits are in place as a security measure, in order to stop thieves from withdrawing all your cash if they get their hands on your debit card. From a practical point of view, ATMs can only hold a limited amount of cash, so imposing limits also allows the bank to ensure there is enough money in the ATM for client withdrawals.
The maximum ABM withdrawal amount depends on both your bank’s standard limits, as well as the limits for the account you hold. In general, the maximum ATM withdrawal is between $500 and $3,000 per day. For example, the Scotiabank ATM withdrawal limit is $3,000. To learn exactly how much you can withdraw, on a daily basis, log into your bank account, online, or talk to a bank representative.
No. If you withdraw cash at an ATM operated by your bank or a member of their partner network, no ATM fees will apply.
However, you will be charged fees if your bank account does not have transactions as part of the package (either as a free account perk or as part of the monthly bank fee). You will also be charged ATM fees if you make an ATM withdrawal using a different bank’s ATM.
To help, here is a list of the most common ATM fees you may be charged in Canada:
As a general guide, here’s how much you can expect to pay in ATM fees in Canada:
| Who owns the ATM? | Per transaction fee | Out-of-network ATM fee | Convenience or service charge | Total ATM fee |
|---|---|---|---|---|
| ATM with bank or in bank network | $0 to $2 | n/a | n/a | $0 to $2 per ATM transaction |
| ATM outside of current bank network | $0 to $2 | $0 to $2 | $1 to $5 | $1 to $9 per ATM transaction |
| Private ATM or cash machine | $0 to $2 | $0 to $2 | $1.50 to $5 | $1.50 to $9 per ATM transaction |
Sick of fees eating into your account balance? There are several simple things you can do to avoid ATM fees in Canada and while travelling overseas.
If you know you’ll use ATMs frequently, then pick a bank account or banking provider with a large network of ATMs. A large network means it will be easier to find a machine that doesn’t charge ATM fees.
To help, here is the breakdown of ATM networks from Canada’s big five banks (plus National Bank, since they now round out the big six banks list):
| Min. Age | 19 |
|---|---|
| Account Fee | $0 |
| Overdraft Fee | $5 |
| ATM Out-of-Network Fee | $10 |
| U.S. ATM Fee | $2.50 |
| International ATM Fee | $5 |
| Dormancy Fee | $1.50 |
Most banks now belong to one or more ATM networks — connected automated teller machines that allow different banks to communicate safely and efficiently. Quite often, banks and financial institutions belonging to the same network will charge lower (or no) fees.
However, fees can really start to climb if you end up using an out-of-network ATM. For instance, make a withdrawal at a different bank’s ATM and you’ll probably be charged a network access fee. You could also be charged a convenience fee or non-customer surcharge. If you end up using a private ATM — not affiliated with a bank or ATM network — these fees can add between $4 to $10 per transaction!
To determine if your bank account is in a network, look for network logos on your debit, credit or prepaid card.
Check to see if a network logo is somewhere on the front or back of your card to find out if you have access to an ATM network with your account.
Widely-used ATM networks in Canada include: Global ATM Alliance, THE EXCHANGE, Allpoint, Accel, Interac, PLUS, Maestro, Interlink and Cirrus.
An easy way to find an ATM near you is to use a smartphone and the Google Maps app to simply search using the term “ATM near me.”
Another option is to use your bank’s ATM locator tool. Most banks and financial institutions have tools on their sites and mobile banking apps that you can use to find the nearest ATM or branch to a specified location (usually a postal code).
To find your nearest ATM, both Mastercard and Visa offer global ATM locator tools on their respective websites. To find a Visa ATM or Mastercard ATM, search online for “ATM locator” or “ATM near me.” To find a Visa ATM, search for “Global ATM locator” or “Global ATM alliance.” To find a Mastercard ATM, search for “Mastercard Cirrus network,” or “Mastercard ATM locator.”
According to survey responses in the Finder: Consumer Sentiment Tracker Q1 and Finder: Consumer Sentiment Tracker Q2 reports, the accessibility of ATMs is a relatively small factor when Canadians choose to open a bank account.
Most major grocery stores, drugstores and gas stations will let you get cash back if you make a purchase. Some stores offer this for free, while others have a surcharge, which is usually lower than ATM fees charged in Canada.
You can use your credit card to withdraw cash from your available credit limit at an ATM. This is known as a cash advance, and you’ll need to pay a cash advance fee which could be:
You’ll also be charged interest at your card’s cash advance rate, which is typically higher than the standard purchase rate.
When travelling overseas and using your debit card at international ATM machines you could be charged a variety of fees. In order to avoid these additional costs, it’s best to understand when and where these fees are charged.
Many banks and financial institutions apply a fee when you use your debit card to withdraw money from an overseas ATM. This is typically called a non-bank usage fee since you’re using a bank different from your own. This charge tends to be a flat fee between $1 and $5, plus some may charge a percentage of the amount you withdraw (usually 2.5% to 3.5%). Some banks will waive the ATM fee if you withdraw from ATMs belonging to their global alliance.
The local ATM operator may also charge a fee for the use of the ATM. While it varies depending on the country, you could pay a similar fee to that your bank charges: anywhere from $1 to $5, plus some may charge a percentage of the amount you withdraw (usually 2.5% to 3.5%). This fee will typically be shown on the screen before you make a transaction, or could be shown as a physical sticker on the ATM. You may also pay a conversion fee to the ATM operator, which covers the cost of converting the currency.
You can easily avoid paying a currency conversion fee by always paying in the local currency. Some debit/credit machines will ask if you’d like to pay in the local currency or Canadian dollars. Always choose the local currency to avoid currency conversion fees and let your own bank do the conversion for you.
If you use your debit card to make a point-of-sale purchase — say a cashier terminal at a local store — you may be charged a foreign transaction fee. This fee is typically between 2% to 3% of the total transaction cost and is charged in addition to other fees, such as currency conversion fees.
To reduce or eliminate fees when using your debit card while travelling, you need to open a bank account that includes low or no ATM and debit card fees when overseas.
It’s important to keep the following factors in mind when using your debit card to withdraw funds overseas:
Not only do you need to consider the network transaction fee at ABMs in Canada when you use a machine outside your bank’s network, but you also need to take overseas ATM fees into account.
Check your card to see which global ATM network it belongs to when you need to access your account overseas. For example, Mastercard operates the Cirrus and Maestro networks, while Visa runs the Plus network. These networks allow you to use millions of ATMs around the world with your Canadian debit card, but you’ll need to watch out for transaction fees charged by the ATM operator or your bank.
To help minimize fees when you use debit cards internationally, banks partner with other ATM operators around the world. Two of the largest ATM networks in Canada are Global ATM Alliance and THE EXCHANGE (known as Accel in the US). If you have a debit card from a member bank, you can use it at ATMs offered by other banks in the same network without paying any surcharges. Bear in mind that foreign conversion fees and other charges may still apply to your transaction.
Scotiabank and Tangerine belong to the Global ATM Alliance. This alliance features over 50,000 ATMs in over 40 different countries worldwide, including machines from the Bank of America, Barclay’s, Barclays Africa Group, BNP Paribas, Banca Nazionale del Lavoro, Deutsche Bank and Westpac. If you use your Tangerine or Scotiabank debit cards overseas at these brands of ATMs, you could avoid paying any ATM fees.
Some of the ‘Big Five’ banks (TD, RBC, BMO and Scotiabank) offer VIP or premium banking packages that offer free overseas ATM withdrawals (the fee is waived). While this can save you from paying an ATM fee, you’ll likely have to pay for this type of premium banking experience.
ATMs make it easy to manage your money on a day-to-day basis, with no need to waste time in a queue at your local bank branch. You can withdraw cash, deposit cash at an ATM and check your balance quickly and easily. But ATM fees can eat away at your hard-earned dollars, so make sure you know which fees apply to your account.
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