Security deposit interest in Connecticut
Verified against Conn. Gen. Stat. § 47a-21(i); § 36a-26 (deposit index) and agency sources on 2026-07-04. Not legal advice.
Connecticut requires landlords to pay interest on security deposits.
- Rate: Rate set annually by the state Banking Commissioner as the 'deposit index' (average of national savings/money-market rates from FDIC National Rates and Rate Caps, published late November); deposit must be held in escrow at a Connecticut financial institution
- Current rate: 0.49% (2026)
- Paid: annually on the tenancy anniversary (payment or rent credit); balance with interest within 21 days of termination
- Statute: Conn. Gen. Stat. § 47a-21(i); § 36a-26 (deposit index) · primary source
2026 deposit index announced by Banking Commissioner: 0.49% (2025 was 0.52%).
Security deposit interest calculator
Frequently asked questions
Do landlords have to pay interest on security deposits in Connecticut?
Yes. Rate set annually by the state Banking Commissioner as the 'deposit index' (average of national savings/money-market rates from FDIC National Rates and Rate Caps, published late November); deposit must be held in escrow at a Connecticut financial institution (Conn. Gen. Stat. § 47a-21(i); § 36a-26 (deposit index)).
What is the Connecticut security deposit interest rate for 2026?
0.49%. Rate set annually by the state Banking Commissioner as the 'deposit index' (average of national savings/money-market rates from FDIC National Rates and Rate Caps, published late November); deposit must be held in escrow at a Connecticut financial institution
When must deposit interest be paid in Connecticut?
Annually on the tenancy anniversary (payment or rent credit); balance with interest within 21 days of termination.
Anything else Connecticut landlords should know about deposit interest?
2026 deposit index announced by Banking Commissioner: 0.49% (2025 was 0.52%).
Deposit interest in other states
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Related: rent increase rules in Connecticut · prorated rent calculator