The rate for the use of an automatic teller machine may soon be going up.

Norwest Bank will increase its ATM annual rate to as much as double the present cost by the first of the year.

Contrary to popular belief, the banks which are increasing their rates are not doing it for profit. Russ Cross, president of Norwest Bank in Ames said there is a lot of cost for banks to have ATM machines. “It costs a lot to feed the machines and keep them supplied with money,” Cross said.

What many people might not know is how expensive the ATM machines are. The units range in cost anywhere from $12,000 to $50,000. ATM’s are more expensive depending on options, such as foreign languages or ability to take deposits. Banks usually purchase ATM machines directly from the manufacturer.

“They are not money makers,” Cross said. He said they are simply a way of making life more convenient.

“It is a less expensive way to provide service for customers,” Cross said. ATM’s are less expensive for banks than tellers and drive up windows, which are the most expensive ways for banks to provide service.

Norwest charges an annual fee of $7.50 for an ATM card. At the first of the year, this rate will increase to $15.00. This cost is offset by offering free checking.

Cross said banks which have free ATM service usually do not have free checking, and to compensate for the free ATM usage, the banks charge on a per check basis or have an annual fee for checking.

It is important to look at the total cost of holding a checking account, rather than the cost for checks or ATM, Cross said. Customers should find programs that suit them best, Cross said.

ISU Credit Union customer, Crista Hubby, sophomore in political science, said she likes her free ATM use and does not mind checking costs because of her preference.

Cross said many students take advantage of the free checking that Norwest offers. He does not understand why it has become a “lightning rod issue for the media.” After all, he said, “An ATM card is not a necessity of life.”

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Annual ATM Fees

Bank Current Planned name rate change

1st National Bank $5 NONE

AmerUs Bank NONE NONE

Brenton Bank $1.05 /mo. NONE

First American Bank $6 plus tax NONE

Firstar Bank $12 NONE

ISUCredit Union $4 1st time fee NONE

Midwest Heritage Bank $6 NONE

Norwest Bank $7.50 $15

Story County Bank & Trust NONE NONE