December 12, 2016
BANKING COMMISSIONER ANNOUNCES 2017 DEPOSIT RATE
Sets Interest for Rental Security Deposits
Department of Banking Commissioner Jorge Perez today announced the 2017 deposit index will be 0.08%. The deposit index is used to determine the interest rates required by statute to be paid for various accounts which are detailed in the attached 2017 Deposit Index and Interest Rates Schedule. 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. Upon moving 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 tenants’ security deposits with interest or give written notice of damages being claimed within thirty days of a tenant moving.
The 2017 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 2017 to be 0.08%.
Calendar Year 2017
|Account||Statutory Reference1||Interest Rate|
|Rental Security Deposits||47a-21(i)||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(c)
(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, 2017 and ending December 31, 2017.
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).
1See Public Act 16-65 for the most current version of the noted statutes.