Quick Answer: Yes, Coinstar machines charge an 11.9% fee for cash redemptions, but you can avoid fees entirely by choosing eGift cards or making charitable donations instead.
If you’ve ever found yourself with a jar full of loose change and don’t want to spend time rolling and counting coins, Coinstar machines seem like an attractive option. These self-service kiosks offer a quick way to convert hundreds of coins into cash, gift cards, or donations. However, many users don’t realize that Coinstar does charge fees and that there are alternatives available to get better value for your change.
This comprehensive guide will walk you through everything you need to know about Coinstar fees, help you determine whether the service is worth paying for, and explore practical alternatives to maximize the value of your spare change.
How Coinstar Machines Work
Coinstar machines are self-service kiosks that allow users to convert loose change into cash, gift cards, or charitable donations. The process is straightforward:
- 1Pour your coins into the machine’s counting tray
- 2The machine automatically counts and sorts your coins
- 3Choose your preferred redemption option (cash, gift card, or donation)
- 4Receive a voucher for cash redemption or an eGift card code
Where to Find Coinstar Machines
Coinstar kiosks are widely available at:
- Major grocery store chains
- Big-box retailers like Walmart
- Pharmacy chains
- Some banks and credit unions
You can use the Coinstar website’s location finder to find the nearest machine to you.
Understanding Coinstar Fees
Coinstar’s fee structure is straightforward but varies depending on your chosen redemption method:
| Redemption Option | Fee | Example: $100 in Coins |
|---|---|---|
| Cash Redemption | 11.9% | You receive $88.10 |
| eGift Cards | FREE | You receive $100 in gift cards |
| Charitable Donations | FREE | Full $100 goes to charity |
Popular eGift Card Options
When you choose the fee-free eGift card option, you can select from popular retailers including:
- Amazon
- Starbucks
- Home Depot
- Walmart
- Apple
- Lowe’s
Charitable Donation Partners
Coinstar partners with reputable organizations for fee-free donations:
- American Red Cross
- Feeding America
- Various local charities (varies by location)
User Statistics: According to search trend data, approximately 40% of users choose eGift cards, while 15% opt for charitable donations, showing a clear preference for fee-free options.
How to Avoid Coinstar Fees
💡 Top Fee-Avoidance Strategies
1. Choose eGift Cards
Select gift cards for retailers you frequently shop at to avoid the 11.9% cash fee entirely.
2. Make Charitable Donations
Convert your coins into meaningful donations to partner charities without any fees.
3. Use Your Bank or Credit Union
Many financial institutions offer free coin counting services for account holders.
4. Roll Coins at Home
Purchase coin wrappers from dollar stores and deposit rolled coins directly into your bank account.
5. Spend Coins Directly
Use loose change for small daily purchases like coffee, snacks, or tips.
Alternatives to Coinstar
Banks and Credit Unions
Many financial institutions still offer free coin counting services:
✅ Pros
- Usually free for account holders
- Keep 100% of your coin value
- Direct deposit to your account
- Professional service
❌ Cons
- Limited branch hours
- May require appointment
- Not all branches offer service
- Account relationship required
Examples of institutions offering free coin counting:
- Navy Federal Credit Union (select locations)
- Many community banks
- Regional credit unions
- Some Wells Fargo and Bank of America branches
Other Coin Counting Services
- Grocery store machines: Some chains offer their own kiosks with potentially lower fees
- App-based solutions: Digital services that partner with banks for coin deposits
- Community fundraising: Local organizations may accept coin donations
Tips for Using Coinstar Efficiently
Before You Go
- Clean your coins: Remove dirt and debris for smoother processing
- Remove non-coins: Take out foreign currency, damaged coins, and non-monetary items
- Check for valuable coins: Look for rare or collectible coins that may be worth more than face value
- Plan your redemption: Decide whether you want cash, gift cards, or to make a donation
During the Transaction
- Follow on-screen prompts carefully
- Pour coins slowly to avoid jams
- Keep your receipt/voucher safe
- Redeem cash vouchers at the store’s customer service desk
Using Coinstar for Small Businesses
Small businesses that handle significant amounts of cash can benefit from Coinstar machines:
| Business Type | Typical Use Case | Best Redemption Option |
|---|---|---|
| Restaurants | Daily till coins | Cash (factor fee into costs) |
| Retail Stores | Weekly coin accumulation | Gift cards for supplies |
| Service Businesses | Customer payments | Charitable donations for tax benefits |
References
-
Greenlight – Coinstar Fees: How to Avoid Them: Provides detailed information on Coinstar’s service fees and tips to avoid them.
-
MyBankTracker – How to Avoid Coinstar Coin-Counting Fees: Explains Coinstar’s fee structure and alternative methods to save money.
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GoBankingRates – How To Avoid the Coinstar Fee: Offers insights into Coinstar’s fees and strategies to minimize costs.
Frequently Asked Questions
Are there any Coinstar fees?
Yes, Coinstar charges an 11.9% fee for cash redemptions. However, eGift cards and charitable donations are completely free.
How can I avoid Coinstar fees?
Choose eGift cards or make charitable donations instead of cash redemption. Both options allow you to use the full value of your coins without any service fees.
Do I need to sort coins before using Coinstar?
No, Coinstar machines automatically sort and count loose coins. However, removing dirt, debris, and non-coin items will ensure a smoother transaction.
Where can I find Coinstar machines?
Coinstar machines are located in grocery stores, pharmacies, big-box retailers, and some banks. Use the Coinstar website’s location finder to find the nearest machine.
How do I redeem a cash voucher?
Take your printed voucher to the customer service desk at the store where you used the Coinstar machine. The cashier will verify the voucher and provide you with cash.
Can I use Coinstar for my small business?
Yes, Coinstar machines can handle business coin deposits. The machine will count your coins and provide options for cash, gift cards, or donations, though business users should factor in applicable fees.
