Cost of convenience - UPDATE

On 25 July last year I wrote about the cost to me of convenience ie. using the nearest ATM rather than seeking out my brand.

I'm not sure what it's like in the States but in Australia, you're able to use your bank's ATMs as many times as you'd like for free but, should you use a competitor's, both the competitor ATM will charge you as well as your bank. Over 12 months it cost me $108.50 (an average of $9 per month). So, I changed banks to one with an account that allows me to visit other banks' ATMs. On my statement I get this cool message:

NAB ATM W/D TRAN FOR $20.00 NAB ATM OPERATOR FEE OF $1.50 PAID BY B/WEST

Having changed banks but not my behaviour I thought now was a good time to assess the impact...

I have easy access to my bank records from 6 October until 30 January, which seems as good a period as any to review...

I have used an ATM 23 times since 6 Oct.
Of those visits, 13 have been to my bank so I wouldn't expect a charge.
Based on an average of $2 per charge for visiting an alien ATM this could have been $20 worth of charges.
My bank accounts show convenience has cost me $9 (or $3 per month)
(I'll admit that most of these charges were incurred at pubs where they have those high-cost, but very convenient, any brand ATMs).

That's a saving of $11 (or $3.60 per month!)

Over 12 months, I can then expect to save $43.20. And, now that I don't generally need as much money at the pub because soft drink is sooo much cheaper, I probably won't need to withdraw more money!

Go me!

The cost of convenience

Milk from the corner store often costs more. You pay extra for dinner to be home delivered. Not to mention doctors. And, judging by my bank statements for the last financial year, taking out money from the closest ATM costs you too.

I paid over $108.50 in bank fees and ATM withdrawal fees. 

It actually serves me right. Nearly 12 months ago (where on earth does time go?) I asked for help choosing a new bank account. I then did nothing about it. My indecision and inactivity has really cost me. 

I had thought I was doing a pretty good job hunting my brand down and minimising my withdrawal costs because my (now former) bank allowed me free withdrawals from their own or the occasional partner ATM. Evidently this was not the case, I guess because I try not to carry too much cash in fear of spending it. I am regularly caught short and approach no-name ATMs who charge me for my lack of foresight and/or laziness. Not only was I get stung by whoever owned that particular ATM, anywhere between $1.50 to $2.50 per withdrawal, but the double whammy of being charged by my bank. Not too mention the $3 per month service fee I pay on one account and $5 on the other. 

Now being aware of what my behaviour has cost me, I finally made time to find a bank that matches my habits rather than me try to change. This meant ignoring the offer of 50c for every EFTPOS withdrawal over $200 or even making it free from ATM. It also meant turning down the $50 bonus interest. Instead, I have opened an interest free account, linked to a high interest online savings account, with access to the Big 4's ATM network without charge. Let's see how this goes!