Connecticut Security Deposit Interest
Connecticut requires deposit interest for covered rentals. The rate rule includes 0.49%. Condition: Educational-institution student housing is exempt.
Interest rules
| Interest required | Yes |
|---|---|
| Condition | Educational-institution student housing is exempt. |
| Rate rule | Not less than the deposit index determined by the Banking Commissioner under Conn. Gen. Stat. § 36a-26 for that calendar year. |
| Current rate | 0.49% per year |
| How interest builds up | Compounded annually to the extent applicable (statute defines 'accrued interest' as interest due under subsection (i), compounded annually to the extent applicable). |
| When it must be paid | On the anniversary date of the tenancy and annually thereafter, paid to the tenant or credited toward the next rental payment. If the tenancy ends before the anniversary, or if the landlord returns all or part of the deposit before termination, accrued interest is due not later than 21 days after such termination or return. |
| When interest may be lost | Interest shall not be paid to a tenant for any month in which the tenant has been delinquent for more than ten days in the payment of any monthly rent, unless the landlord imposes a late charge for such delinquency. |
| What you can recover | If the only violation is failure to deliver accrued interest, landlord is liable for ten dollars or twice the amount of the accrued interest, whichever is greater. Knowing and wilful violation of subsection (i) is subject to a fine of not more than one hundred dollars for each offense. Banking Commissioner does not have jurisdiction over failure to pay interest annually. |
| Statute | Conn. Gen. Stat. § 47a-21(i); § 36a-26 |
Statute says
each landlord other than a landlord of a residential unit in any building owned or controlled by any educational institution and used by such institution for the purpose of housing students of such institution and their families
What this means
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Condition: each landlord other than a landlord of a residential unit in any building owned or controlled by any educational institution and used by such institution for the purpose of housing students of such institution and their families
The result assumes this condition is met.
Not less than the deposit index determined by the Banking Commissioner under Conn. Gen. Stat. § 36a-26 for that calendar year.
Listed rate: 0.49% per year
Accrual: Compounded annually to the extent applicable (statute defines 'accrued interest' as interest due under subsection (i), compounded annually to the extent applicable).
Enter your deposit and dates to see an estimate.
Free Connecticut template, built from verified state data
I rented [rental property address] from [lease start date] to [move-out date]. I paid a security deposit of $[amount]. I returned the keys on [date] and gave you my forwarding address in writing on [date]. Under Connecticut law (Conn. Gen. Stat. § 47a-21), a landlord must return the deposit or respond in writing within [21 calendar days / 15 calendar days, see the note above] after [the event listed in the note above].
FAQ
Does my landlord owe deposit interest in Connecticut?
Yes, for covered rentals. each landlord other than a landlord of a residential unit in any building owned or controlled by any educational institution and used by such institution for the purpose of housing students of such institution and their families
Which interest rate should I use?
0.49% per year Not less than the deposit index determined by the Banking Commissioner under Conn. Gen. Stat. § 36a-26 for that calendar year.
When must the landlord pay the interest?
On the anniversary date of the tenancy and annually thereafter, paid to the tenant or credited toward the next rental payment. If the tenancy ends before the anniversary, or if the landlord returns all or part of the deposit before termination, accrued interest is due not later than 21 days after such termination or return.