What's happening
This bill increases the number of free monthly withdrawals for basic banking accounts to twelve for account holders aged 65 or older.
Why it matters
Helps seniors retain more of their money. By increasing the number of free monthly withdrawals for those 65 and older, the bill reduces the likelihood that seniors—who may have fixed or limited incomes—will incur extra bank fees.
Recognizes the specific financial needs of older adults. Seniors often need to make more frequent transactions for medical, caregiving, or daily living expenses. This change acknowledges and accommodates those unique circumstances.
Reduces financial stress and barriers. Lower banking fees can make it easier for older New Yorkers to manage their finances independently, supporting financial inclusion and potentially preventing seniors from turning to riskier, fee-heavy financial products.
Promotes age-friendly banking practices. By explicitly distinguishing between age groups in account terms, the bill encourages banks to consider the needs of older adults in their service models, possibly setting a precedent for further age-sensitive financial reforms.
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Who cares
Headline styles
More Bank Withdrawals for Seniors
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Substituted by A1940
- Advanced to third reading
- 2nd report cal.
- 1st report cal.414
- Referred to banks
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
More Withdrawals for Seniors
Signed by Governor · Sponsor Kenneth Zebrowski
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2245
2019-2020 Regular Sessions
IN SENATE
January 23, 2019
Introduced by Sen. SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Banks
AN ACT to amend the banking law, in relation to the number of withdrawal transactions from a basic banking account
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (c) of subdivision 2 of section 14-f of the banking law, as added by chapter 1 of the laws of 1994 and such subdivision as further amended by section 104 of part A of chapter 62 of the laws of 2011, is amended to read as follows:
(c) eight withdrawal transactions for account holders under sixty-five years of age, and twelve withdrawal transactions for account holders sixty-five years of age or older, including those conducted at electronic facilities, during any periodic cycle at no additional charge to the account holder; and
§ 2. This act shall take effect on the sixtieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01464-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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 that 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 551 payments electronically. However, senior citi- zens, 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 addi- tional 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
S6242 of 2015-16 Session
Fiscal implications
None to the state.
Effective date
Sixty days after becoming law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.