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New Jersey Security Deposit Interest Calculator

This free New Jersey security deposit interest calculator determines exactly how much interest your landlord owes you under New Jersey Statutes § 46:8-19.

New Jersey Statutes § 46:8-19 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 New Jersey law.

Leave blank to use the default estimate of 1.5%. Actual interest earned on the deposit in a qualifying bank or investment account.

How Security Deposit Interest Works in New Jersey

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.

New Jersey Deposit Interest Rules

%
Interest Rate Actual bank interest earned (est. 1.5%)
Treble Damages Violations may entitle you to 2× the deposit amount in court.

Legal basis: New Jersey Statutes § 46:8-19. Last verified: 2026-05-25.

Key Details for New Jersey

Landlord must invest the deposit in a money market fund or interest-bearing account at a NJ bank
Tenant is entitled to the actual interest earned, not a fixed statutory rate
The 7% figure cited by some sources is a PENALTY for non-compliance, not the interest rate
Landlord must provide an annual statement of interest earned
Deposit must be returned with interest within 30 days of lease termination
Default estimated rate of 1.5% is used when the actual bank APY is not known
Failure to comply may expose the landlord to double (2×) damages per N.J.S.A. 46:8-19

How New Jersey Security Deposit Interest Works

Under N.J.S.A. 46:8-19, landlords must place your security deposit in an interest-bearing account at a New Jersey bank or invest it in a money market fund. You are entitled to the actual interest earned on the account — not a fixed statutory rate. This means your interest will vary based on current bank rates.

The landlord must provide you with an annual statement showing the interest earned, and must pay or credit the interest to you annually. Our calculator uses an estimated 1.5% APY as a default when the actual bank rate is unknown, but your actual rate may be higher or lower depending on the account type.

An important distinction: you may have seen "7%" cited in connection with NJ security deposits. This is NOT the interest rate. The 7% figure per N.J.S.A. 46:8-19 is a penalty rate that applies when the landlord fails to comply with deposit notice requirements — an entirely separate issue from the regular interest you earn on a properly held deposit.

Example: NJ Deposit Interest Estimate

Your deposit is $3,000 (1.5 months of $2,000 rent) and you've been in the unit for 2 years. The bank pays an estimated 1.5% APY.

Deposit: $3,000
Estimated annual interest: $3,000 × 1.5% = $45.00/year
Over 2 years: $45.00 × 2 = $90.00 total interest
No admin fee deduction (NJ does not permit one)
Total owed at move-out: $3,000 + $90.00 = $3,090.00

Your landlord owes you approximately $3,090.00 within 30 days of lease termination. The actual amount depends on the real bank APY, which your landlord should be reporting to you annually.

Frequently Asked Questions

What is the interest rate on security deposits in New Jersey?

There is no fixed statutory rate. You are entitled to the actual interest earned on the bank account or money market fund where your deposit is held. Our calculator estimates 1.5% APY when the actual rate is unknown. Do not confuse this with the "7%" figure — that is a penalty for landlord non-compliance with notice requirements, not the regular interest rate.

What is the 7% penalty for New Jersey security deposits?

The 7% per annum figure under N.J.S.A. 46:8-19 is a penalty that applies when a landlord fails to comply with the deposit notice and placement requirements — for example, failing to put the deposit in a proper account or failing to provide written notice of the bank details. It is NOT the interest rate on a properly held deposit. These are two completely different legal obligations.

Does my New Jersey landlord have to tell me where my deposit is held?

Yes. The landlord must provide written notice of the bank or investment company name and address within 30 days of receiving the deposit. Failure to provide this notice triggers the 7% annual penalty. The landlord must also provide an annual statement of interest earned.

Can I get double damages for New Jersey deposit violations?

Yes. Under N.J.S.A. 46:8-19, tenants may be entitled to double (2×) damages for certain deposit violations. This is in addition to the 7% annual penalty for notice violations. The deposit must be returned with interest within 30 days of lease termination.

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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.