Connecticut security deposit interest
Connecticut sets one statewide interest rate for security deposits every year. The Banking Commissioner publishes it in December as the "deposit index", the average rate paid on savings deposits by insured banks in the state, and it applies to every residential deposit held during the following calendar year. For 2026 the index is 0.49%.
Print this page for a dated statement showing the rate applied to each year and the statute.
How Connecticut deposit interest works
Interest is simple, not compounded, and is owed on the anniversary of the tenancy each year, either paid out or credited against the next month’s rent. When the tenancy ends the accrued interest is returned with the deposit, within 21 days of move-out or 15 days after the landlord receives a forwarding address, whichever is later.
The rules in brief
- The rate is the published deposit index for each calendar year the deposit is held, so a three-year tenancy uses three different rates.
- A landlord may skip interest for any month in which the tenant was more than ten days late with rent.
- Deposits must be kept in an escrow account at a Connecticut bank, separate from the landlord’s own money.
- A landlord who fails to return the deposit and interest on time is liable for twice the amount wrongfully withheld.
Connecticut Department of Banking. Each December, for the following calendar year.
Connecticut deposit interest rate history
The calculator uses the rate for each calendar year automatically when the rate field is left at the published figure.
| Year | Rate | Interest on $1,000 for the year |
|---|---|---|
| 2026 | 0.49% | $4.90 |
| 2025 | 0.52% | $5.20 |
| 2024 | 0.55% | $5.50 |
| 2023 | 0.27% | $2.70 |
| 2022 | 0.06% | $0.60 |
| 2021 | 0.08% | $0.80 |
| 2020 | 0.15% | $1.50 |
| 2019 | 0.15% | $1.50 |
| 2018 | 0.09% | $0.90 |
| 2017 | 0.08% | $0.80 |
| 2016 | 0.08% | $0.80 |
| 2015 | 0.08% | $0.80 |
| 2014 | 0.09% | $0.90 |
| 2013 | 0.11% | $1.10 |
| 2012 | 0.16% | $1.60 |
Source: Connecticut Department of Banking.
Worked examples: one year held
At the current rate, for a deposit paid on 1 January 2025 and returned on 1 January 2026.
| Deposit | Interest-bearing portion | Interest owed |
|---|---|---|
| $1,000.00 | $1,000.00 | $5.20 |
| $1,500.00 | $1,500.00 | $7.80 |
| $2,500.00 | $2,500.00 | $13.00 |
Other Connecticut deposit rules
- Maximum deposit: 2 months' rent (1 month's rent if the tenant is 62 or older).
- Return deadline: 21 days after termination of the tenancy, or 15 days after receiving written notice of the tenant's forwarding address, whichever is later (deposit plus accrued interest, less itemized deductions).
- Late fees: No late charge until rent is more than 9 days late (4 days for a week-to-week tenancy). The charge may not exceed the lesser of (1) $5 per day up to a maximum of $50, or (2) 5% of the delinquent rent (5% of the tenant's share if rent is subsidized). Only one late charge per delinquent payment regardless of how long it remains unpaid; a lease clause contrary to these limits is unenforceable (§ 47a-4(a)(8)-(9)). Added by PA 23-207, effective Oct 1, 2023. Secondary sources report PA 25-1 (effective Jan 1, 2026) extends the grace period 5 more days when the landlord's own online payment system blocked the payment — UNVERIFIED against the act text.
Full page: Connecticut landlord and tenant rules.
Frequently asked questions
What is the Connecticut security deposit interest rate for 2026?
The deposit index for 2026 is 0.49%. It is set by the Connecticut Banking Commissioner each December and applies to deposits held during the following calendar year.
Does my landlord have to pay deposit interest every year?
Yes. Connecticut requires payment or a rent credit on each anniversary of the tenancy, not only at move-out. If it was never paid, the full accrued amount is owed with the deposit.
Can the landlord withhold interest if I paid rent late?
Only for months in which rent was more than ten days overdue. Interest still accrues for every other month.
How is the interest calculated?
Deposit × the year’s index rate × the fraction of that year the deposit was held, summed across years. It is simple interest; earlier interest does not itself earn interest.