December 12, 2023

Banking Commissioner Announces 2024 Deposit Index

Sets Interest for Rental Security Deposits

HARTFORD — The 2024 deposit index has been determined to be 0.55%.  The deposit index is used to determine the interest rates required by statute to be paid for various accounts – see attached 2024 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 twenty-one 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 or for any damage documented by the landlord.  When they move out, tenants must provide written notice of a forwarding address where the landlord may send their security deposit with interest.  

The 2024 interest rate for rental security deposits is 0.55%.

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 860-240-8170.

A sign-up form is available for those who would like to subscribe to updates regarding the interest rate for rental security deposits. 

Media Contact

Matt Smith, 860-240-8105
matthew.smith@ct.gov