Why do people use Coin Star and pay a 12 percent fee? When Banks have free coin counting machines no fees for account holders pays in cash?

You must be a dunce. Coin Star charges no fee for e-certificates such as Amazon. Most banks do NOT have free coin counting machines.

The same reason why many people pay ATM fees. Convenience.

Plus, not all banks are going to allow you to use their counting machines. And they will want them rolled with your name & account number on each roll.

Finally, you can choose gift certificate and pay a smaller fee.

I used one years ago during a promo where I paid no fees.

Not all banks have coin machines.
Convenience
CoinStar transactions are free of fees if you put the money on a gift card instead of getting cash.

There's a sucker born every day. Some people are lazy, and others don't know that.

1. Most banks have gotten rid of their coin counters available to the public. Wells Fargo used to offer this... but then people figured out the machines were very inaccurate.
2. Clearly convenience. Banks will accept rolled coins to deposit, every bank does.

Most banks don't accept coins these days.

Maybe they just do it when they have a huge mountain of coins, and don't want to go through the hassle. I've never even heard of a "coin counting machine", I know they have them for bills. And I don't think it's 12%, I believe it's lower.

Or go to Walmart self checkout if it’s not busy and pay for your stuff with all change

People like to do to fast.

my banks doesnt have a counting machine. I just count it myself and just try buy a soda with my change.

Many banks charge a fee
Most places do not charge 12% on coinstar either
My local grocery store charges 1 or 3% based on how you want your money

I pay nothing at my Coinstar machine. I choose to get an Amazon certificate worth every penny of the coins I put in.

i use all my quarters so i only have pennoes nickels and dimes...dirt to boot...But i did not know banks had this feature...i have never seen it before