Under new law, CT banks must offer low-cost financial accounts to state residents

A new law passed by state lawmakers this session requires certain state-chartered financial institutions to offer Connecticut residents a basic banking account with few-to-no fees, according to the Office of Legislative Research (OLR).  

Public Act 22-77 was passed by the House and Senate and signed into law by Gov. Ned Lamont  May 31. It goes into effect July 1, 2023. 

Among other features, the accounts must include a free debit card and cannot impose low balance fees or charge for in-network ATM access, account overdrafting, or having insufficient funds, the OLR analysis said.

The goal of the new law is to broaden banking access to more Connecticut residents. 

The law received pushback from the Connecticut Bankers Association, which argued it would put state-charted banks at a competitive disadvantage to federal banks because it would be preempted by federal laws and regulations.