Increases number of withdrawal transactions from basic banking accounts for account holders sixty-five years of age or older from eight to twelve

1 Co-sponsor

• Leroy Comrie

Title of bill

An act to amend the banking law, in relation to the number of withdrawal transactions from a basic banking account

Purpose or general idea of bill

This bill increases the amount of withdrawal transactions allowed at no additional charge for basic banking account holders aged sixty and older from eight to twelve.

Summary of specific provisions

This bill amends paragraph c of subdivision 2 of section 14-f of the banking law.

Justification

As part of the Banking Deregulation Act of 1994, state chartered banks were required to offer "lifeline" basic checking accounts which allowed consumers eight free withdrawal transactions (including checks, bank withdrawals, and withdrawals from a bank's own ATM) during anyone month billing cycle. The lifeline account was designed to assist the poorest residents of our state who are required to use banks to receive their Social Security and SSI payments electronically. However, senior citizens, who make up the largest group who use banks for receipt of federal benefits, are also the group least likely to be able to afford the additional expenses required to maintain a bank account. In many instances, seniors must make more than eight withdrawal transactions per month to cover out-of-pocket medical expenses and unexpected events. Providing an increase for seniors is reasonable and would allow seniors living on fixed incomes to avoid certain banking fees.

Prior legislative history

None

Fiscal implications

None to the state.

Effective date

Sixty days after becoming law.