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ATM withdrawal limits can seem like an unnecessary obstacle at first glance, but these limits can help consumers keep their spending in check. Essentially, an ATM limit is the highest amount someone can withdraw from an ATM in one day. Read on to better understand how ATM withdrawal limits work, including the maximum withdrawal limit per day and tips for managing ATM withdrawal limits.
Understanding ATM Withdrawal Limits
ATM withdrawal limits serve a few different purposes. In addition to helping consumers avoid overspending, they also exist due to cash availability restraints and security concerns. If someone uses ATMs as a part of their regular money management, it’s important that they understand what their ATM withdrawal limit is so they can plan their spending and withdrawals accordingly. Factors that influence ATM withdrawal limits include:
Cash availability. Understandably, ATMs have physical limitations on how much cash they can hold. Even if a bank were to refill an ATM multiple times throughout the day (in addition to consumers depositing cash at ATMs), banks only have so much cash on hand. By limiting withdrawal amounts, banks can ensure their ATMs remain fairly stocked for the many different customers who may need to access cash via one of their ATMs throughout the day.
Security. ATM withdrawal limits can also help keep banking customers safe from large financial losses. In the event an unauthorized user tries to access someone’s bank account via an ATM, they can only withdraw a limited amount of funds, not the entire checking account balance.
How Much Can You Withdraw from an ATM?
How much you can withdraw from an ATM depends on the chosen bank or credit union and their rules surrounding ATM limits per day. That being said, some financial institutions cap withdrawals at as little as $300 per day, whereas others have higher limits of up to $5,000 per day.Not all customers of a bank may face the same ATM withdrawal limit per day. Oftentimes, each individual customer has their own unique limit. For example, customers who have basic checking accounts tend to have lower limits than customers who bank using a premium checking account. Individuals may also have different withdrawal limits for their checking and savings accounts, with savings accounts typically having higher limits.Recommended: A Guide to Cardless ATMs
ATM Withdrawal Limit per Day
All ATMs have daily withdrawal limits for both checking and savings accounts, and it’s up to each financial institution to decide how to set these limits. Usually, daily limits are between $300 and $5,000 a day. The type of account the customer wants to pull money from can impact their particular limit.
Maximum ATM Withdrawal
ATM withdrawal limits should be included on account documentation given to the customer when they open their checking account or outlined in the bank’s mobile app. If someone isn’t sure what their maximum ATM withdrawal limit is, they can contact their bank or credit union to find out what that amount is. If they’re unhappy with that amount, they can request the financial institution raise their ATM limit. Whether or not they receive an increase can depend on factors such as:
Their banking history
Types of accounts they have open
Account balances
Asking for a temporary increase instead of a permanent one can help to make for a more convincing argument. It can also be advantageous for the individual making the request to argue their case as to why they’re a good customer and to explain why they need to withdraw more than is allowed.Another option to withdraw more money in a day is to visit a bank branch location and request cash from the teller instead of using an ATM.
Practical Tips for Managing ATM Withdrawal Limits
If someone is unsure of how to manage their ATM withdrawals, consider the following practical tips:
Create a budget. Having a strong budget in place can make money management easier across the board. If someone prefers to make payments in cash throughout their day-to-day life without accidentally running out of cash, it’s even more important they plan a clear budget. That way, they know exactly how much cash they need to have on hand so they can avoid having to run to the ATM too often.
Use a debit card. Most merchants accept debit card payments, which allow customers to pay with the cash in their checking account without having to actually have cash on hand. This is a convenient solution for consumers looking to avoid using credit cards but who want the ease of paying with a card.
Spend less. The fewer purchases someone makes, the less cash they need to have available (and the more they can save). Scaling back spending habits can also save consumers tedious trips to the ATM or bank for cash.
The Takeaway
ATM withdrawal limits typically range from $300 to $5,000 per day, depending on the bank, the person’s banking history, the type of account, and the account balances. Knowing the bank’s ATM withdrawal limits can help consumers experience fewer roadblocks in their daily life while trying to manage their money responsibly. To manage money effectively, consumers need a solid savings account where the money can earn interest. With Lantern, it’s possible to review a variety of high-yield savings accounts, taking into account fees and balance minimums.Compare high interest online savings accounts and find today’s best rate with Lantern.
Frequently Asked Questions
What ATM has the highest withdrawal limit?
How many times can I withdraw money from an ATM in a day?
Can a bank ask why you are withdrawing money?
Photo credit: iStock/Ivan Pantic
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About the Author
Jacqueline DeMarco
Jacqueline DeMarco is a personal finance writer and editor based in Southern California. While she spends the bulk of her time writing about complex financial issues, she also tackles a variety of subjects ranging from food to fashion to travel. Her work can be found across dozens of publications such as Credit Karma, LendingTree, Northwestern Mutual, The Everygirl, and Apartment Therapy.
