Legal Question in Landlord & Tenant Law in Connecticut

Security Deposit Interest CT Apt

I am the owner of a high rent condo in CT. I collected 2 months security equal to two months rent. I looked up the interest on the web that I am responsible for and it is 1.5%. Is this correct? I could not find an escrow account in CT that paid more than .25%. Do I have to make up the difference with my own money?


Asked on 5/09/09, 5:13 pm

1 Answer from Attorneys
Linda Subbloie Linda A. Subbloie, Esq.

Re: Security Deposit Interest CT Apt

That's a very interesting question. We have not seen interest rates this low and now many banks are paying less than the minimum required in the statute.

I'm not sure what you are describing as an "escrow" account. I have seen interest rates on savings accounts of more than .25, depending on the amount deposited, and especially online banks which are known to pay more.

The statute says not less than 1.5% so that's what you have to pay no matter how you pay it.

Have you talked with a bank manager to see if a regular savings account can be used as an "escrow" account?

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Answered on 5/09/09, 5:30 pm


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