ATM charges cost consumers 140m

UK consumers are paying 140 million a year to withdraw their own money from cash machines, Nationwide has revealed.

15:18 16 December 2004

UK consumers are paying 140 million a year to withdraw their own money from cash machines, Nationwide has revealed.

This represents an increase of 133 per cent on the previous 12 months.

In the run up to the Treasury Select Committee's inquiry into charging cash machines, Nationwide Building Society has found there are almost 20,000 fee-charging ATMs in the UK which equates to 40 per cent of the cash machine network.

If the number of fee-charging machines continues to grow at its current pace, it is likely that by next Christmas, there will be more fee-charging machines than free ones.

However, alongside the growth in fee-charging machines, the number of free machines has risen as well - albeit at a far slower rate - meaning there are now more places to withdraw cash free than 12 months ago.

Nationwide has also found that 1,600 free machines have a charging one within 100 metres, proving consumers are choosing to pay through the nose rather than vote with their feet.

Stuart Bernau, Nationwide's executive director said: "The amount paid by consumers in ATM fees has more than doubled in the last year from 60 to 140 million.

"We welcome the Treasury Select Committee's enquiry and hope a code of practice can be devised which will make it easier for consumers to differentiate between charging and free machines.

"In the meantime consumers need to be wary when taking cash out of ATMs and boycott fee paying machines whenever possible."