Security deposit interest in Connecticut
Yes — Connecticut landlords must pay interest on security deposits.
Work out what you are owed in Connecticut
Enter your deposit and dates to see what Connecticut law entitles you to.
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Not legal advice. This is an estimate for informational purposes only and is not legal advice. Security deposit laws change and vary by jurisdiction. Verify with the cited statute or consult a licensed attorney in your state before taking action.
How is the Connecticut interest rate set?
Rate set annually by the Connecticut Banking Commissioner as the deposit index under Sec. 36a-26. For 2026 it is 0.49 percent. A multi-year tenancy uses each year's own rate. Published rates run from 2004 to 2026, taken from the Department of Banking's Previous Deposit Indexes table; historical rates are at portal.ct.gov. A tenancy beginning before 2004 cannot be computed exactly.
What does Connecticut law actually say?
Connecticut requires landlords to pay annually compounded interest on residential security deposits at the state deposit index rate, set each calendar year by the Banking Commissioner. The rate attaches to the calendar year, not the tenancy year: Sec. 47a-21(i) sets the rate "for each calendar year", and names the anniversary only as the date interest is paid or credited, not as an accrual boundary.
Interest is paid or credited on each anniversary of the tenancy. On termination, the deposit plus accrued interest must be returned within 21 days, or 15 days after the tenant gives a written forwarding address, whichever is later. Student housing owned by an educational institution is exempt.
No interest accrues for any month in which the tenant was more than 10 days late with rent, unless the landlord charged a late fee; the exclusion operates per month, not per tenancy. Advance payment of the last month's rent counts as a security deposit under Sec. 47a-21(a)(11) and earns interest on the same basis, as confirmed at 141 Conn.
App. 299 — a tenant who paid last month's rent up front should include it in the deposit amount.
When must a Connecticut landlord return the deposit?
21 days after the tenancy ends.
How much can a Connecticut landlord charge?
Max 2 months rent; 1 month if tenant is 62 or older.
What if your landlord does not comply?
Failure to return the deposit: liable for twice the deposit. Failure to deliver only accrued interest: $10 or twice the accrued interest, whichever is greater. Knowing and wilful violation of the interest requirement: fine up to $100 per offence.