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On Sunday, Elaine and I decided to try a new-to-us Italian restaurant in Philadelphia’s Old City. The restaurant is BYOB, which is always appealing to thrifty me. But it’s also cash only.
No problem, I thought. I bank with Chase, and a quick Google search turned up an ATM near the restaurant. But when we got to the ATM, a sign indicated you couldn’t access it on Sundays. The next closest Chase ATM was nine blocks away—which was tempting, but time was short.
It’s hard to express just how much I hate paying a fee to access my own money. But I sucked it up and walked into a TD Bank, where the machine dinged me $3.50 for my $200 cash withdrawal. That hurt, but I was mentally prepared.
Instead, the gut punch came this morning, when I checked my account balance—and discovered that Chase had charged me an additional $3, bringing the fee on my $200 ATM withdrawal to $6.50, or 3.25%.
Think about that: Vanguard Group charges 0.03% of assets each year for its total U.S. stock market exchanged-traded index fund. Even financial planners typically don’t charge more than 1% of assets per year. And yet banks apparently think it’s okay to ding folks 3% of assets for a onetime transaction that involves nothing more complicated than spitting $20 bills out of a machine.
Yeah, it’s going to take a while to forget this one.
Schwab checking debit card also refunds all domestic and foreign transaction fees. Recently used the card onboard a cruise ship. Fee was $6 on a $20 withdrawal. Schwab refunded the fee as is their policy. We travel to Canada a lot. It serves us well there. It’s a great card.
I just want to share what I feel may be the most inaccurate financial statement of all time. ( This has nothing to do with what you wrote, though)
A friends wife told me, ” The best way to make money is to buy a house and hold it for a long time.” I was tempted to compare the return of Warren Buffetts BRK to the average home values over decades, etc.,( or even the returns of the entire stock market) but, I threw in the towel.
Buffetts house was purchased in the fifties for around 35k, its now worth around 1.2 million, and you clearly know that that pales in comparison to market returns, even before factoring in decades of taxes, insurance and much more. Oh well. if memory serves , the market return would be around twenty five million and BRK stock….!!!!!!
If you’re heading to Europe you also need to be aware of foreign conversion fees. I had a Capital One checking account purely for travel as it charged no ATM fees, reimbursed those charged by other banks and charged no foreign conversion fees. Cap One has since changed the account and Schwab might be a better bet today. Also, look up dynamic currency conversion scam.
This just happened to me in Mexico… combine the need for convenience and not wanting to stray from the resort, the ATM told me a $7.95 atm fee would be assessed. Fine. Ally Bank reimburses me up to $10 per month, I’ll get it back. The next screen, they also want an extra 7.95%!! I cancelled and then later went back realizing it was my only option. That was my worst ATM experience. $12.72 to get $60.
Just a note for information – Fidelity’s Debit/ATM card associated with their Cash management (checking) account reimburses all ATM fees…which is one of the main reasons I use them because I find the usual ATM fees at the machine itself (one vendor) and my bank (second vendor) just unacceptable. I must admit though that my paranoia causes me to keep $200 tucked into the back of my wallet ‘just in case’. The cash usually dies a very slow death in those dark confines…but it does make me feel just a little bit more in control.
Yes–the Fidelity Debit card allows one to use most any ATM without worry about fees, since all are reimbursed in a timely manner.
I echo many of these comments. I absolutely refuse to pay ATM charges and I’ve driven crazy distances out of my way to keep that oath.
I recently heard something that made me realize I’m probably being irrational and I might want to ease up a bit, as the fees are such a small percentage of my life.
This also reminds me of Al Franken’s 2000 era book called “Why Not Me” about his fictional run for president (with running mate Joe Lieberman) SOLELY on one issue: ATM fees. He won!
When considering a bank I might do business with, as with investments, cost is everything. I don’t want to pay a bank anything no matter what service I might want to use. I don’t mind if the interest they pay on what funds I keep in my checking is minimal. After all, they need to make a buck. But I draw the line at having to have a minimum balance, or paying a fee just to have an account. And ATM fees are out as well. After all, I never go into the bank to see a teller, so my only contact with them is electronic. Both Schwab and BECU meet these criteria.
Many credit unions do not charge for using their ATM and mine also provides an allowance of $10 a month they will reimburse me for using other ATMs. Shop around.
Hi Jonathan, this is Chris. I would feel the same way you do about the fees. I am sure a lot of us HD readers would. How was the restaurant?
Jonathan – how was the restaurant?
ATMs charges fees, not a %. So If I’m stuck with one that I know is going to charge me, I take out the max I can to reduce the %.
That was the silver lining: The restaurant was excellent. You and Vicky should try it next time you’re in Philly.
https://www.oleaphilly.com/
My Citizens Bank has closed 3 branches that were convenient to me, making me travel further to access cash without paying a fee. It’s a pain to switch banks but at some point I will if they fail to meet my needs.
Jonathan, always keep a hundred dollar bill hidden in your wallet as emergency cash. I shy away from places that are cash only. To me that’s a red flag of at least some tax evasion.
I agree. In this day and age, a cash-only restaurant is odd.
There’s a few around us. It is, I assume, mostly about avoiding credit card fees, not tax evasion.
Actually studies show people spend more in a restaurant if they use a card so cash only may be an overall loser, plus credit can be safer and some claim less costly for the restaurant than managing the cash.
Our favorite pizza joint in Lancaster- the closest I can come to the NJ pizza of my youth- is cash-only. It’s been run by an older couple (no other employees that I’ve ever seen) for about 40 years. Would be shocked if the cash-only policy had to do with anything other than avoiding credit card fees and complexity.
I don’t mind a cash only restaurant if their prices are good. However if I’m paying 15 or 20 bucks for a burger they better take plastic if they want my business.