Office of the State Comptroller
Thomas P. DiNapoli, State Comptroller
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Tips & Topics - Banking


Choosing a Bank

To begin choosing the right financial institution, think about the kinds of services that are important to you, now and in the future. You will probably want an institution that can provide, at a minimum, a checking account and a savings account. The New York State Banking Department has created a brochure to help you decide if opening a banking account is right for you, and to help you determine what features might suit your particular financial needs.

Shop around for the best deal

Which bank is right for you? While that answer depends on the features you’re looking for, a great place to start comparison shopping is with the New York State Banking Department. The Department has created a regional map that lets you click on your region to see fee comparison charts showing checking accounts, ATM and debit card fees to help you compare different banks. In general, checking accounts are available in two primary categories: accounts that pay interest (interest-bearing) and accounts that do not pay interest (non-interest-bearing).

These accounts vary in the fees associated with them, and some may require minimum monthly balances. It is important to shop around for the best deal, one that meets your banking needs. If you ever discover errors with your banking account, there are several legal safeguards to help you. The FDIC offers a guide to help you correct bank account errors.

Make sure your money is safe

For many, the chief concern in selecting a bank is the safety of their money. Most depositors at banks and savings and loans are insured by the Federal Deposit Insurance Corporation (FDIC).

The FDIC guarantees each depositor’s money up to $250,000. That means your cash will be returned to you, even if your bank fails. Some retirement accounts, including individual retirement accounts, are covered for up to $250,000 per depositor. Please click here to determine what is and what is not protected by FDIC insurance.

So, the first question you should consider asking any institution you’re considering is whether your deposits will be insured by the FDIC. If you have joint accounts, each depositor’s share of the account is protected up to $250,000.

  • Is your bank FDIC insured? The FDIC’s Bank Find helps you quickly research any institution.
  • The FDIC has created EDIE the Estimator to help you calculate your insurance coverage for each FDIC-insured bank where you have deposit accounts.

The Banking Department is the primary regulator for New York State-licensed and State-chartered financial entities, including roughly 300 domestic banks; many foreign agencies, branches and representative offices; savings institutions and trust companies; and other financial institutions operating in New York, including mortgage bankers and brokers, check cashers, money transmitters and licensed lenders, among others.

Please note that some institutions, including national banks, are regulated by federal government agencies. Other entities may have a state other than New York State as their primary regulator. See Institutions not under New York State jurisdiction, for more information.

  • If you have a banking question, please call the Banking Department’s toll free hotline at 1-877-BANK-NYS.
  • In these difficult economic times, there has been a lot of news about bank failures across the country. The FDIC offers information on what to do when a bank fails.
  • To see a listing of all the banks that have failed since October 2000, please click here.

Basic banking accounts

According to the New York State Banking Department, New York State law requires that all banks offer consumers a low-fee bank account that meets specific basic criteria. Banks are permitted to impose certain conditions on opening and maintaining a basic banking account. No matter what name the bank gives to the type of account, anyone in New York State can have a basic banking account if the following conditions are met:

  • The initial deposit amount required to open the account cannot be more than $25.
  • The minimum balance required to maintain the account is not more than $.01 (one cent).
  • The monthly charge for the maintenance of the account cannot be more than $3.00.
  • Account holders are allowed at least eight withdrawals per month at no additional charge. Withdrawals can include checks, ATM withdrawals and purchases using a debit card attached to the account.
  • There is no limit to the number of deposits that can be made to the account per month.

Visit the New York State Banking website for more information.

Online banking

Online banking can help you manage savings and checking accounts, apply for loans, or pay bills quickly and easily, but you need to be sure your privacy and information is safe and secure. Before signing up for online banking, you should understand all that online banking can offer, consider some questions to ask before signing up, and know how to get help if you need it.

  • The Federal Reserve Bank of New York has created a guide to help you determine if online banking is right for you.
  • The FDIC offers tips for safe banking over the Internet to help you avoid costly surprises and scams that are sometimes associated with online banking.

 

 

Next: Deposit Insurance Basics