ATM charges cost dearly, warns Sainsbury’s Bank

Should we have to pay for getting our own money out of the bank? After all, some of us already pay for packaged accounts, for overdrafts and for other account facilities. Why should we pay for withdrawing cash as well? Sainsbury’s Bank has warned that customers could be charged up to £16.43 million for withdrawing their money over the holidays if they use ATMs that impose a cash withdrawal charge. That represents an increase of £1.46 million over last year.

The bank, which has a no charge policy for its own network of more than 900 cash machines, has says that the number of charging ATMs has increased dramatically. It estimates that up to 10.4 million cash machine withdrawals made during December will incur charges. This is an increase of almost ten per cent over a year ago.

While 96 per cent of cash machine transactions are made at free to use cash machines, you have to feel sorry for the people making the other 4 per cent. Sainsbury’s Bank estimates that there has been a 188 per cent increase in the number of cash machines imposing a usage fee in the last four years. These machines now account for about 44 per cent of all cash machines.

To make sure you don’t get stung for taking your own money out of the bank, it’s worth paying attention to ATM transactions, warns Sainsbury’s Bank. Machines should have an on screen warning or a sticker which details the fact that charges will be made for using them. However, it can be easy to miss these warnings while dashing around for shopping or other leisure activities.

Meanwhile, Sainsbury’s Bank has reaffirmed its commitment to non-charging cash machines. In the last year, the bank has increased the number of free to use ATMs by some 19 per cent to over 900. So if you don’t want to pay for your own money, that’s one place to go.