BASIC BANKING ACCOUNTS
© 2003 by Neighborhood Legal Services, Inc.
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        A Basic Banking Account is a low cost account that helps customers who find it hard to afford regular checking account fees and who do not make many transactions each month. Most regular checking accounts cost between $8-$10 per month. Basic Banking Accounts cost $3.00 each month.

What are the benefits of Basic Banking?

Basic Banking Accounts are designed to be more accessible to low-income people:

• The initial deposit required to open the account can’t be more than $25;
• The minimum balance required to keep the account open can’t be more than one cent;
• The monthly maintenance fee can’t be more than $3.00; and
• You must be allowed to make at least eight free withdrawals (via checks or ATMs) per month.

        As long as you meet the following requirements, you can have a basic banking account:

• You must provide the same information and identification as others that maintain regular accounts at the bank; and
• You must be a New York State resident; and
• Your deposits must be made through direct deposit, if direct deposit is available to you (for instance, if you receive SSI and the Social Security Administration will direct deposit your checks, you will have to use direct deposit); and
• You may not maintain any transaction account at any other financial institution.

        Yes. These accounts may be more limited than a regular full service checking account (i.e., other types of accounts may allow you more than 8 free withdrawals each month.) Also, remember that banks can still charge additional service charges and fees, including fees for bounced checks, stopped payment orders, and the use of ATMs not operated by your bank. Before opening a Basic Banking Account, be sure to ask your bank for information concerning the features of Basic Banking Accounts to make sure it is right for you.

        Call your bank or visit the local branch. Remember to ask for basic banking by name.

        When you ask your bank to switch you to a Basic Banking Account, also ask if the bank will waive the prior fees of the more expensive account that you have. Some banks may be willing to reimburse you for the difference between the cost of your current account and the cost of a basic banking account.

        All FDIC-insured financial institutions, either state-chartered or federal-chartered, that do business in New York must offer a Basic Banking Account. Many banks in Buffalo offer Basic Banking Accounts. Call your bank.

        There may be. If you are not satisfied with your current bank or if you do not have an account at a bank yet, do some research in the community. Some banks may offer no fee checking without a minimum deposit or balance at all!

        If you have a problem with a bank or want to make a complaint call: Consumer Banking Complaints at 1-800-522-3330.

This information letter was prepared with a grant from The Community Foundation for Greater Buffalo

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