These days, most people pay with cards, mobile wallets, or online transfers. But cash is still necessary in certain situations like buying a used car from a private seller, paying a contractor, or splitting expenses with someone who only accepts cash.
When you go to an ATM to withdraw money, you might notice there’s a daily limit. For many banks, this limit falls somewhere between $300 and $1,000 per day. That can be frustrating if you suddenly need more.
Understanding how ATM withdrawal limits work and how to manage them can help you avoid surprises and access your money when you need it.
Why Banks Set ATM Withdrawal Limits
Banks don’t create limits to inconvenience you. There are two main reasons: managing cash supply and protecting your account.
1. ATMs Don’t Have Unlimited Cash
When you deposit money into your bank account, the bank doesn’t keep all of it sitting in a vault waiting for you. Instead, it uses deposits to fund loans for other customers, such as mortgages, car loans, and business financing.
Even if banks wanted to keep all cash ready, it would be impossible to predict exactly how much cash each ATM will need every day. Withdrawal limits help ensure that ATMs don’t run out of money quickly and that all customers have fair access.
Your money is still safe. If your account is insured by the Federal Deposit Insurance Corporation (FDIC), your deposits are protected up to $250,000 per bank.
2. Limits Help Protect You From Fraud and Theft
Imagine someone steals your debit card and learns your PIN. Without withdrawal limits, they could drain your entire account in minutes.
Daily limits slow down criminals and reduce the amount they can steal.
For example:
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If your limit is $500 per day, the thief can only take $500 before you have time to notice and report the fraud.
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Without limits, they could potentially withdraw thousands of dollars immediately.
This extra protection gives you time to lock your card and prevent further losses.
ATM Limits Vary by Bank and Account Type
Not all accounts have the same withdrawal limits. The amount depends on several factors, including:
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Your bank
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Your account type
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Your banking history
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Your debit card type
For example:
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Basic or student accounts may have lower limits.
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Premium accounts often allow higher withdrawals.
Some major banks offer higher limits. For instance:
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Bank of America may allow up to $1,000 per day.
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Citibank accounts can allow up to $1,500 per day, depending on the account.
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Premium accounts at Truist may allow withdrawals up to $3,000 per day.
These numbers vary, so it’s always best to check directly with your bank.
Checking vs. Savings Account Limits
Most people use checking accounts for everyday spending, and these accounts typically have clear ATM withdrawal limits.
Savings accounts may allow ATM withdrawals too, but they often have rules about how frequently you can withdraw money. In the past, the Federal Reserve limited savings accounts to six withdrawals per month. While that rule has been relaxed, some banks still apply their own limits.
What to Do If You Need More Cash Than Your ATM Limit
If you need more money than your ATM allows, you have several options.
1. Visit Your Bank Branch
This is the easiest and safest solution.
Go to your bank and withdraw cash directly from a teller. With proper identification, you can usually withdraw much larger amounts than ATM limits allow.
Example:
If your ATM limit is $500, you might still be able to withdraw $5,000 or more inside the branch.
2. Ask Your Bank to Increase Your Limit
Many banks will raise your ATM withdrawal limit if you ask, especially if:
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You have a good banking history
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Your account has sufficient funds
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You explain the reason for the request
Some banks offer temporary increases for situations like travel or large purchases.
3. Get Cash Back at Stores
Many stores such as grocery stores, gas stations, and pharmacies allow you to get cash back when you pay with your debit card.
For example:
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You buy groceries for $20
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You request $100 cash back
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Your total charge becomes $120
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You receive $100 in cash
However, stores usually limit cash back amounts to $20–$200 per transaction.
4. Use a Credit Card Cash Advance (With Caution)
You can use your credit card to withdraw cash at a bank or ATM. This is called a cash advance.
But this option is expensive because:
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Fees apply immediately
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Interest starts right away
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Interest rates are higher than regular purchases
This method should only be used in emergencies.
When Does Your ATM Limit Reset?
Most banks reset ATM withdrawal limits once per day, usually at midnight.
For example:
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You withdraw $500 at 9 PM
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Your limit resets at midnight
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You can withdraw another $500 after midnight
This reset happens every day, including weekends and holidays.
Debit Card Purchase Limits Are Different
Your ATM withdrawal limit is separate from your debit card spending limit.
Debit card daily spending limits can range from:
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$1,000 for basic accounts
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Up to $25,000 or more for premium accounts
This means you might not be able to withdraw $5,000 in cash but you could still spend $5,000 using your debit card.
Smart Tips to Avoid ATM Limit Problems
Here are some simple ways to stay prepared:
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Know your bank’s daily withdrawal limit
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Plan ahead for large cash needs
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Visit a bank branch for large withdrawals
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Ask for a temporary limit increase if needed
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Use electronic payments when possible
Please take a look at this as well:
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