Banking Commissioner Announces 2016 Deposit Rate
Sets Interest for Rental Security Deposits
December 7, 2015
Department of Banking Commissioner Jorge Perez has announced the 2016 deposit index to be 0.08%. The deposit index is used to determine the interest rates required by statute to be paid for various accounts – see attached 2016 Deposit Index Memorandum. The index is based on average rates paid on savings deposits and must be determined annually by the Banking Commissioner.
Rental Security Deposit
Landlords and tenants have rights and responsibilities when it comes to collecting, holding, and returning rental security deposits. For example, a tenant forfeits their interest for any months that they are more than ten days late on their rent. When they move out, tenants must provide written notice of a forwarding address where the landlord may send their security deposit with interest. Landlords are required to return the security deposits of their tenants with interest or give tenants written notice of damages being claimed within thirty days of when tenants move.
The 2016 interest rate for rental security deposits is 0.08%.
The Department of Banking’s website includes a section dedicated to rental security deposit issues, including a listing of previous interest rates, at www.ct.gov/dob. For further information, contact the Department of Banking, at 860-240-8154.
Pursuant to Sections 16-262j(d), 47a-21(i)(2) and 49-2a(c) of the Connecticut General Statutes, the Commissioner has determined the deposit index for the calendar year 2016 to be 0.08%.
Calendar Year 2016
|Account||Statutory Cite||Interest Rate1|
|Rental Security Deposits||47a-21(i)(2)||0.08%|
|Claims for property, funds, or money delivered to the State Treasurer||3-70a(e)||0.08%|
|Mortgage escrow accounts
(section requires that the interest rate be not less than the deposit index, rounded to the nearest one-tenth of one percentage point)
|Public service company, certified telecommunications provider and electric supplier customer security deposits||16-262j(d)
(section requires that the interest rate be not less than the higher of the deposit index, rounded to the nearest one-tenth of one percentage point, or 1.5%)
These rates are for the period commencing January 1, 2016 and ending December 31, 2016.
1 PLEASE NOTE: The interest rates provided herein are done as a convenience to the public; the commissioner has no authority to establish interest rates beyond what is provided in statute.
Accordingly, parties required to pay interest under these Sections must ensure compliance with the applicable statute(s).