New York Security Deposit Interest Calculator
This free New York security deposit interest calculator determines exactly how much interest your landlord owes you under General Obligations Law § 7-103. Applies to buildings with 6+ units.
How many units are in your building?
Your landlord's legal obligations depend on the size of the building.
How Security Deposit Interest Works in New York
Building Size
We check if your building meets the 6-unit minimum.
Deposit Details
Enter deposit amount and move-in date for calculation.
Compliance
We check if bank disclosure requirements were met.
Your Claim
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New York Deposit Interest Rules
Legal basis: General Obligations Law § 7-103. Last verified: 2026-05-23.
Key Details for New York
How New York Security Deposit Interest Works
New York's security deposit interest rules are narrower than most tenants expect. Under General Obligations Law § 7-103, only landlords of buildings with six or more residential units are required to deposit your security in an interest-bearing account. If you live in a smaller building (1-5 units), your landlord has no statutory obligation to pay you interest at all.
For qualifying 6+ unit buildings, the landlord must place your deposit in a New York banking institution and pay you the interest earned — minus a 1% annual administrative fee the landlord is entitled to retain. The interest rate is not set by statute. Instead, the law requires the "prevailing rate" at the bank where the deposit is held, typically a savings or passbook account.
Here's the practical reality: New York does not mandate a specific interest rate. Our calculator uses an estimated 1.5% APY as a default if you don't know your bank's actual rate, but the true prevailing passbook savings rate at most banks has been well below 1% — and in many cases near 0% — for the past decade. This means the actual dollar amount of interest owed may be negligible, even on a large deposit held for several years.
Example: NY Deposit Interest Estimate
You live in a 10-unit building in Brooklyn. Your deposit is $2,500 and you've been in the unit for 3 years. Your landlord hasn't told you which bank holds the deposit.
While the interest itself is only about $37.50, the failure to disclose the bank is far more significant. The potential treble damages claim ($7,500) dwarfs the interest amount — which is exactly why the bank disclosure is the most important protection under GOL § 7-103.
Frequently Asked Questions
What is the interest rate on security deposits in New York? ▼
There is no single fixed rate. New York law requires the "prevailing rate" at the bank where the deposit is held — typically a savings or passbook account. In practice, this rate has been near 0% at most major banks for the past decade. Our calculator uses an estimated 1.5% APY as a generous default, but your actual rate depends on the specific bank account your landlord uses.
Does my New York landlord have to pay me interest on my security deposit? ▼
Only if you live in a building with 6 or more residential units. Under GOL § 7-103, landlords of 6+ unit buildings must place your deposit in an interest-bearing account at a New York bank and pay you the interest earned (minus a 1% annual administrative fee). Landlords of smaller buildings (1-5 units) have no statutory interest obligation.
Why is NY security deposit interest so low? ▼
Because the rate is tied to the actual bank savings rate, which has been near 0% at most banks for years. Unlike states with statutory fixed rates (e.g., Ohio's 5% or Connecticut's 0.49%), New York doesn't set a minimum. The real value of the NY deposit interest law is often not the interest itself, but the requirement that the deposit be held separately — violations of which can trigger treble (3×) damages.
What happens if my New York landlord didn't tell me where my deposit is held? ▼
This is potentially more valuable than the interest itself. If your landlord failed to provide written notice of the bank name and address, they may have violated the prohibition against commingling deposit funds with personal accounts. This violation can entitle you to treble (3×) damages — three times your full deposit amount — in court, regardless of how much interest was actually earned.
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