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CT • Verified 2026 Data

Connecticut Security Deposit Interest Calculator

This free Connecticut security deposit interest calculator determines exactly how much interest your landlord owes you under Connecticut General Statutes § 47a-21.

Connecticut General Statutes § 47a-21 Last verified: 2026-05-25
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Security Deposit Details

Enter your original deposit amount and move-in date to calculate interest owed under Connecticut law.

How Security Deposit Interest Works in Connecticut

1

Deposit Details

Enter deposit amount and move-in date for calculation.

2

Compliance

We check if bank disclosure requirements were met.

3

Your Claim

Get your breakdown and generate a demand letter.

Connecticut Deposit Interest Rules

%
Interest Rate Fixed 0.49% annually
Treble Damages Violations may entitle you to 2× the deposit amount in court.

Legal basis: Connecticut General Statutes § 47a-21. Last verified: 2026-05-25.

Key Details for Connecticut

Interest rate is set annually by the Banking Commissioner based on the deposit index (average savings rates). The rate of 0.49% applies to calendar year 2026 and is subject to change each January.
Interest is compounded annually per § 47a-21(a)(1)
Landlord must pay interest annually or apply it as credit toward rent
No administrative fee deduction is permitted
Deposit must be held in a separate escrow account at a Connecticut bank
Applies to all residential rentals regardless of building size
Failure to comply may expose the landlord to double (2×) damages per § 47a-21(d)(2)

How Connecticut Security Deposit Interest Works

Connecticut has one of the clearest deposit interest systems in the country. Under § 47a-21(a)(1), landlords must pay interest on security deposits at a rate set annually by the Banking Commissioner — based on the deposit index, which tracks average savings rates at Connecticut banks. For 2026, this rate is 0.49%.

Unlike states where the rate fluctuates with bank accounts, Connecticut publishes a single statewide rate each January, making it easy to calculate exactly what you're owed. Interest is compounded annually per the statute, and the landlord must either pay the interest to the tenant each year or credit it toward rent.

The deposit must be held in a separate escrow account at a Connecticut bank — not commingled with the landlord's personal funds. This applies to all residential rentals regardless of building size, with no minimum unit count. Failure to comply may expose the landlord to double (2×) damages under § 47a-21(d)(2).

Example: CT Deposit Interest Calculation

Your deposit is $2,400 and you've been in the unit for 3 years. The rate for each year is 0.49% (the 2026 rate — actual annual rates may vary).

Year 1: $2,400.00 × 0.0049 = $11.76 → Balance: $2,411.76
Year 2: $2,411.76 × 0.0049 = $11.82 → Balance: $2,423.58
Year 3: $2,423.58 × 0.0049 = $11.88 → Balance: $2,435.46
Total interest: $35.46

Your landlord owes you $35.46 in accrued interest over 3 years. No administrative fee deduction is permitted in Connecticut.

Frequently Asked Questions

What is the current security deposit interest rate in Connecticut?

For 2026, the rate is 0.49%, set by the Banking Commissioner based on the deposit index (average savings rates at CT banks). This rate is published each January and applies for the full calendar year. Some websites incorrectly cite "2%" — that figure is outdated and no longer accurate.

Is Connecticut deposit interest compounded?

Yes. Under § 47a-21(a)(1), interest on security deposits is compounded annually. This means each year's interest is added to the principal, and the following year's interest is calculated on the new, higher balance. The practical difference from simple interest is small at current rates, but it is the legally correct calculation.

Does my Connecticut landlord have to pay me deposit interest every year?

Yes. The landlord must either pay the accrued interest to you annually or credit it toward your rent. They cannot simply hold the interest until the end of the tenancy. If your landlord has never paid or credited interest, they may owe you the full accumulated amount going back to the start of your tenancy.

What happens if my Connecticut landlord violates deposit rules?

Under § 47a-21(d)(2), you may be entitled to double (2×) damages — meaning twice the amount wrongfully withheld. This penalty applies to violations of any part of the deposit statute, including failure to pay interest, failure to return the deposit within the required timeframe, or failure to hold the deposit in a proper escrow account.

Does the 62+ deposit cap affect interest in Connecticut?

The interest rate is the same regardless of age — 0.49% for 2026. However, tenants 62 and older are subject to a lower deposit cap (1 month instead of 2 months), which means less money held by the landlord. If your landlord collected more than 1 month's rent from a tenant 62+, the interest calculation is secondary to the overcharge claim.

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Disclaimer and Legal Notice

This website provides general estimates and approximations based on local state laws. The figures shown do not constitute formal legal advice, do not represent an official accounting calculation, and do not establish any attorney-client relationship.

Rent laws are complex and subject to change. We urge you to consult with a qualified attorney in your jurisdiction regarding any legal disputes or before taking legal action. Data sources include official state housing finance agencies, attorney general offices, and local statutes.