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18/65 Account Guidelines / Chapter 167D Accounts

Yours Rights and Responsibilities

I. APPLICABILITY AND SCOPE The purpose of these guidelines is to provide banks with guidance on how to comply with the provisions of the 18-65 law so called. This bulletin retains a question and answer format in order to provide practical information to institutions and individuals seeking information on certain aspects of the 18-65 law. Institutions with additional questions or concerns should refer to the entire statute for additional guidance on the law's scope.

A bank, as defined by G.L. c. 167D, s.1, is prohibited from imposing any fee, charge or other assessment against the savings account or demand deposit account of any persons sixty-five years of age or older or eighteen years of age or younger pursuant to G.L. c. 167D, s. 2, subparagraph 1. However, the Act specifically provides that a reasonable charge, as determined by the Division of Banks (Division), may be assessed against any such account of any such persons when payment has been refused because of insufficient funds or paid despite insufficient funds on any check or other action drawn on such account, as set forth in the Act.

Pursuant to the requirements of section 2 of chapter 167D, as rewritten, the Division has determined that, for any account covered by the law, the charge to be assessed for a transaction refused because of insufficient funds or paid despite insufficient funds shall not exceed $5.00 per such transaction.

Massachusetts General Laws chapter 167D, s. 2, subparagraph 1, as most recently amended by Chapter 234 of the Acts of 2010 (Chapter 234),sets forth, in part, that: [A] natural person 18 years of age or under or 65 years of age or older may choose 1 demand deposit account and 1 savings account which, in each instance, shall include a joint account in which the spouse of the eligible depositor, regardless of age, is the joint tenant therein or the joint tenant would otherwise be an eligible depositor, and which has been established and used for personal, family or household purposes, upon which no service, maintenance or other similar charge shall be imposed. No such account shall be subject to: (i) a minimum balance requirement; (ii) a charge for a deposit or withdrawal; or (iii) a fee for the initial order or subsequent refills of the basic line of checks offered by the bank, which shall include the name of the depositor. For the purposes of this subparagraph, the term savings account shall include a regular passbook, regular statement savings or regular NOW account, so-called.