December 9, 2020
Banking Commissioner Announces 2021 Deposit Index
Sets Interest for Rental Security Deposits
The 2021 deposit index has been determined 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 2021 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, 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. On the other hand, a tenant could forfeit 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.
The 2021 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. For further information, contact the Department of Banking, at 860-240-8170.
Matt Smith, 860-240-8105