Deposit Interest Rate
Pursuant to Connecticut General Statutes § 36a-26, the Commissioner has determined the deposit index for the calendar year 2021 to be 0.08%.
Interest Rates on Deposits. Open Express FD. Domestic Fixed Deposits. With effect from 15 Jan 2021. Domestic Fixed Deposits Plus ^ With effect from 26 Feb 2021. NRI Fixed Deposits /FCNR Deposit. With effect from 15 Jan 2021. NRI Fixed Deposits Plus ^ With effect from 26 Feb 2021. 2 days ago Banks in Germany are reportedly turning customer deposits away due to the negative interest rate imposed on them by the European Central Bank.
Interest Rates for Calendar Year 2021 | ||
Account | Statutory Reference | 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 | 49-2a (section requires that the interest rate be not less than the deposit index, rounded to the nearest one-tenth of one percentage point) | 0.10% |
| 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%) | 1.5% |
Previous Interest Rates for rental security deposit and claims for property, funds, or money delivered to the State Treasurer; public service company, certified telecommunications provider and electric supplier customer security deposits; and mortgage escrow accounts.
Previous Deposit Indexes
Fixed Deposit Interest Rate Calculator
The deposit index for calendar year (CY) 2020 is 0.15%; for CY 2019 is 0.15%; for CY 2018 is 0.09%; for CY 2017 is 0.08%; for CY 2016 is 0.08%; for CY 2015 is 0.08%; for CY 2014 is 0.09%; for CY 2013 is 0.11%; for CY 2012 is 0.16%; for CY 2011 is 0.28%; for CY 2010 is 0.34%; for CY 2009 is 0.60%; for CY 2008 is 0.94%; for CY 2007 is 0.94%; for CY 2006 is 0.76%; for CY 2005 is 0.53%; for CY 2004 is 0.55%.
INTEREST ON SECURITY DEPOSIT
When a tenant signs a lease, they are usually required to provide the landlord with a SECURITY DEPOSIT.
The SECURITY DEPOSIT is to ensure that when the tenant leaves (lease ends), the tenant has not caused damage above Normal Wear and Tear.
The security deposit may also be applied to unpaid rent and late charges.
Tenant may also be responsible for any other fees such as utilities and cleaning costs as they may have been stated in your lease.
The deposit rates of credit unions are not included in the calculation. 2 The rate cap is determined by adding 75 basis points to the national rate. To determine conformance with the regulation, compare rates offered by the institution, based on size and maturity of the deposit, to the rate caps. Compare Bank & Credit Union Rates Compare more than 275,000 deposit rates from over 11,000 banks and credit unions, for free.
The security deposit is NOT to be used to pay the last month’s rent, although many tenants elect to do so. If you do so WITHOUT the landlords permission, they may be entitled to charge you a late fee – which would come out of the security deposit.
Senior Citizen Fixed Deposits (FDs) are term deposit plans with special interest rates offered by leading banks to individuals who are over the age of 60. The senior citizen fixed deposit accounts offer a wide range of benefits to senior citizens, apart from the additional rate of interest that can go up to 0.50% more than for the general public.
SECURITY DEPOSIT INTEREST
Today, the interest rate earned on MOST security deposits is minimal (assuming you are not paying thousands in rent). The average interest rate in varies from year to year, may be set by state law or may not apply at all to your rental.
If you provide a security deposit to your landlord DO SO BY CHECK OR MONEY ORDER. Keep a copy for your records. Get a receipt!
Many states require the landlord to provide you a written statement (which may be in your lease) where your security deposit is held. Many states also require the landlord to credit you each year with the interest earned on your deposit.
THE SECURITY DEPOSIT CALCULATOR
Generally, interest on a security deposit is called SIMPLE INTEREST.
To calculate what you may have earned or have to return we use the simple interest formula:
Principal x Interest (for a full year)
Example of Calculating Security Deposit Interest FULL YEAR
Principal (the deposit) = $1,000
Interest = 1% which we change to .010
$1,000 * .01 = $10
Example of Calculating Security Deposit Interest PARTIAL YEAR
$1000 * .01/12 * 7 (or any number of months) =
ARE YOU ENTITLED TO INTEREST ON YOUR SECURITY DEPOSIT
Each state and many cities and towns may have special rules depending on a number of conditions. Some of them can make your head spin. Look at your STATE LAW to see if your unit qualifies and how your town, city or state rules impact you – either as the landlord or tenant.
Some examples that may or may not apply to you:
Owner Occupied, 1-4 units n/a – Short term rental
Best 1 Year Cd Rates
YOU SHOULD ALWAYS ASK FOR A RETURN OF THE SECURITY DEPOSIT in WRITING
In many states, you must send a DEMAND LETTER – which is simply a letter requesting your landlord return your security deposit. EVEN IF you do not have to in your state, you should do it anyway. Send it CERTIFIED MAIL.
ALWAYS PROVIDE YOUR NEW MAILING ADDRESS.
IF you fail to REQUEST YOUR SECURITY DEPOSIT be retuned, you may forfeit your right to it. Look at your STATE LAW.
ALWAYS DEPOSIT YOUR TENANTS SECURITY DEPOSIT
Be smart. ALWAYS deposit YOUR TENANTS SECURITY DEPOSIT (it’s the tenant’s money until they move out) in an INTEREST BEARING ACCOUNT and NOT IN YOUR OWN PERSONAL OR BUSINESS ACCOUNT. Go to the bank and ask to open a LANDLORD TENANT ACCOUNT. Smaller landlords will have separate accounts. Larger landlords MIGHT have one overall security deposit account.
LANDLORDS – IMPORTANT READ
The LANDLORD who fails to deposit the security deposit correctly may lose their rights to evict a tenant, get to charge the tenant for damages and may be held liable for the security deposit, a penalty and more.