Hi Groovychick
Yes there is an ATM in Malame, you can't miss it, near to the Co-op, by the car rental office.
It's a lovely spot, we stayed at Mike's Hotel and have very fond memories of it. As has been mentioned, Platanias is a lively resort only 10-15 mins away by regular bus (about 1 euro) and only 7 euros in a taxi. Those restaurants high above the main square, particularly the Panorama, are terrific with amazing views out to sea.
Chania is on the same bus route, after Platanias and well worth a visit. Leather Alley is full of leather goods, designer copies etc and full of bargains. The Venetian harbour front is full of cafes and bars and makes a great stop.
Also, there is a lovely waterpark
http://www.limnoupolis.gr/ you can catch the landtrain from Malame for about 15 euros per person including admission or book through your rep at 30 euros per person (which we did

)
I'm sure you'll have a lovely time.