What's happening
This bill requires all banks in New York State to offer no-fee basic bank accounts.
Why it matters
Directly impacts all New Yorkers who use or want to open bank accounts. , especially low-income and unbanked individuals, by guaranteeing access to basic banking services without hidden or recurring fees.
Represents a significant change from current law. , as it not only mandates no-fee accounts but also strictly prohibits banks from imposing indirect or disguised charges, and from tying account access to other products, closing loopholes that have previously allowed for extra costs.
Empowers state regulators with enforcement authority. , including the ability to define prohibited practices and impose civil penalties, which could lead to more aggressive oversight of banks statewide and greater consumer protections.
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Who cares
Unbanked and Underbanked Consumers
Individuals who currently lack access to affordable banking services or are deterred by high fees will benefit from the availability of no-fee basic accounts.
Banking Institutions
All banks operating in New York will need to adjust their product offerings, compliance practices, and disclosures to ensure they provide and clearly advertise at least one no-fee basic account.
- Watching
Consumer Advocacy Organizations
Groups focused on financial inclusion, economic justice, and consumer rights will be interested in monitoring implementation, ensuring enforcement, and promoting the new account options to communities in need.
New York State Department of Financial Services
This regulatory agency will have increased responsibilities for rulemaking, enforcement, and oversight to ensure banks comply with the new requirements.
Headline styles
Require Free Basic Bank Accounts
Plain English, a few words. Used as the page title.
Sponsors
Assembly Member · Assembly District 111
No co-sponsors yet.
History
- Referred to banks
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
11264
IN ASSEMBLY
May 4, 2026
Introduced by M. of A. SANTABARBARA -- read once and referred to the Committee on Banks
AN ACT to amend the banking law, in relation to requiring the availability of no-fee basic banking accounts for consumers
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The banking law is amended by adding a new section 9-e to read as follows:
§ 9-e. No-fee basic banking accounts. 1. Every banking institution operating in the state of New York shall offer at least one no-fee basic banking account that:
(a) charges no monthly maintenance or service fees;
(b) requires no minimum balance;
(c) charges no fees based on account inactivity; and
(d) provides essential services including:
(i) deposits and withdrawals;
(ii) debit card access; and
(iii) electronic payments and transfers.
2. No banking institution operating in the state of New York shall circumvent the requirements of subdivision one of this section by:
(a) re-labeling maintenance fees under alternative names;
(b) imposing indirect fees tied to account balance thresholds; or
(c) conditioning access to an account on unrelated product requirements.
3. Each banking institution operating in the state of New York shall clearly disclose the availability and terms of such no-fee basic banking account at the time of an account opening by a consumer and on such banking institution's website.
4. The department shall be authorized to enforce the provisions of this section, to define prohibited practices under this section, and to impose civil penalties for violations.
§ 2. This act shall take effect on the one hundred eightieth day after it shall have become a law. Effective immediately, the department of financial services is authorized to promulgate any rules and regulations necessary for the implementation of this act on or before such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15747-01-6
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.