Fifth Third Bancorp is offering to eliminate ATM fees for new customers in a tactic that contrasts with one of its local rivals.

Starting this month, the Cincinnati-based bank is making the pitch to customers who open checking accounts by Aug. 15. Last year, as part of its Wells Fargo merger, Wachovia ended some waivers that allowed certain account holders to avoid ATM fees.

For customers who sign up, Fifth Third won't charge fees for using another bank's ATM, up to 10 transactions per month. It also will automatically reimburse these customers for fees levied by the ATM's operator.

Credit unions, community banks and online banks have long made such offers, as they try to compete with bigger banks with more extensive ATM networks. But it's unusual for a mid-sized bank such as Fifth Third to make such a pitch, said Greg McBride, senior financial analyst at research firm Bankrate.com.

Offering to eliminate ATM fees "helps level the playing field," McBride said.

Fifth Third, which entered the Charlotte market through the 2008 purchase of First Charter Corp., has 56 branches and 118 ATMs in North Carolina, concentrated in the Charlotte area. That compares to 317 branches and 620 ATMs for Wachovia in North Carolina.

"Basically, we wanted to make banking as convenient as possible for customers," said George Dick, Fifth Third's marketing director in North Carolina. "They don't have to go looking for an ATM. It also saves them money."

The latest offer is only for new customers. Fifth Third already has certain accounts that allow customers to avoid ATM fees.

According to a fall 2010 Bankrate.com survey, banks charge their own customers $1.41 on average to use another bank's ATM. The surcharge applied by the ATM's operator averages $2.33. That means an out-of-network transaction can cost a customer $3.74.

Among Fifth Third's local rivals, Wachovia charges customers $2.50 to use another institution's machine, with some exceptions. Charlotte-based Bank of America said it charges $2. Winston-Salem-based BB&T also charges $2, although it has multiple accounts that waive ATM fees.

Fifth Third charges customers $2, if they're not covered by its latest offer or another account.

Wells Fargo spokesman Josh Dunn said the San Francisco-based bank eliminated some fee waivers because it has a network of 12,000 ATMs nationwide, including 200 in Charlotte. "We believe our customers should be able to access one to meet their needs," he said. Customers can use wellsfargo.com to find a nearby ATM, he added.

More banks are likely to follow Wells Fargo's lead as they adjust account pricing to keep up with new, revenue-crimping regulations related to overdraft charges and debit card fees, McBride said.

"It's back to the drawing board on account pricing as it relates to checking accounts and ATMs," he said.