Before this moment, New York State-charted financial institutions had been required to pay interest of at least 2% on escrow accounts. Federal regulations do not require national banks, federal savings and loan associations and federally chartered credit unions to pay a minimum amount.

The DFS order issued today sets the minimum rate of interest to be paid by New York State-chartered banks, savings and loan associations and credit unions on escrow accounts on loans secured by mortgages on one-to-six-family residences that are occupied by the owner or on any property owned by a co-operative apartment corporation to be the lesser of 2% or the six-month yield on United States Treasury securities.