Security Deposit Interest in Connecticut: Not less than the (2026)
Connecticut landlords must pay interest on every security deposit at a rate not less than the annual 'deposit index' announced by the Banking Com… Calculator, statute citation, Last Verified date o
Quick answer
Yes — Connecticut requires landlords to pay interest on qualifying security deposits. Connecticut landlords must pay interest on every security deposit at a rate not less than the annual 'deposit index' announced by the Banking Commissioner (paid or credited annually on the tenancy anniversary date; student dormitory housing owned by educational institutions is exempt). The rule comes from Conn. Gen. Stat. § 47a-21 (deposit index defined at § 36a-26). State statute (official text) · 2026-10-28
Calculator pre-loaded with this state:
The current rate in Connecticut
Connecticut does not fix the rate in the statute — it moves with a benchmark: Statutory text (tenancies commencing on/after January 1, 2012): 'at a rate of interest not less than the deposit index, as defined in section 36a-26, for that year'. Example: the 2016 deposit index was announced at 0.08%. The 2026 index value: (to be verified). No interest accrues for any month in which the tenant is more than 10 days delinquent, unless the landlord imposes a late charge..
Because the benchmark resets periodically, always check the current published value before relying on an older figure. Where we have confirmed the current value against the official announcement, the calculator above applies it; where we have not, the calculator says so instead of guessing.
How interest must be paid
Statutory text: accrued interest 'shall be compounded annually to the extent applicable'. Paid annually on the anniversary date of the tenancy; if paid on the anniversary it may be credited toward the next rental payment; if the tenancy is terminated before the anniversary date, accrued interest must be paid on or after the date of termination (statute text as amended by P.A. 23-207; 30-day window applied before 2023).
Who the law applies to
All residential landlords; the interest duty applies to every security deposit (no unit-count threshold). Exception: dormitory or rooming units owned/controlled by an educational institution for student housing are excluded. (Statute note: tenants of 5 or fewer units cannot use the § 47a-21(h) escrow-violation penalty, but the interest duty itself is not limited by unit count.)
How Connecticut compares in the Northeast
| State | Rate | Rule |
|---|---|---|
| Connecticut | Not less than the 'deposit index' for that year as defined in C.G.S. § | interest required |
| Delaware | — | no statewide requirement |
| District of Columbia | Interest accrued in the interest-bearing escrow account at the prevail | interest required |
| Maine | — | no statewide requirement |
| Massachusetts | 5% per annum, or the lesser amount of interest actually received from | interest required |
| New Hampshire | Interest at the rate paid on regular savings accounts at the bank wher | interest required |
| New Jersey | Interest actually earned in the NJ interest-bearing account (no statew | interest required |
| New York | Interest actually accrued/paid on the deposit in the interest-bearing | interest required |
| Pennsylvania | Interest earned in the bank escrow account, with the landlord retainin | interest required |
| Rhode Island | — | no statewide requirement |
| Vermont | — | no statewide requirement |
The statute behind it
| Field | Value | | --- | --- | --- | | Citation | Conn. Gen. Stat. § 47a-21 (deposit index defined at § 36a-26) | | Official text | www.cga.ct.gov | | Last verified | 2026-10-28 |
⚠️ 2026 deposit index value not confirmed (Banking Commissioner announcement not located/opened; only historical 2016 value 0.08% verified via search snapshots) No independent second source opened (CT Dept. of Banking security deposit brochure and uwc.211ct.org page surfaced only via search results)
Statutes get amended. If you are relying on this page — for a move-out, a dispute, or a lease draft — click through to the official text and confirm the current wording.
FAQ
Does Connecticut require landlords to pay interest on security deposits?
Yes. Under Conn. Gen. Stat. § 47a-21 (deposit index defined at § 36a-26), qualifying landlords in Connecticut must pay interest — currently Not less than the 'deposit index' for that year as defined in C.G.S. § 36a-26 (announced annually by the CT Banking Commissioner based on average interest paid on savings deposits). All residential landlords; the interest duty applies to every security deposit (no unit-count threshold). Exception: dormitory or rooming units owned/controlled by an educational institution for student housing are excluded. (Statute note: tenants of 5 or fewer units cannot use the § 47a-21(h) escrow-violation penalty, but the interest duty itself is not limited by unit count.)
How is deposit interest calculated in Connecticut?
At Not less than the 'deposit index' for that year as defined in C.G.S. § 36a-26 (announced annually by the CT Banking Commissioner based on average interest paid on savings deposits). Statutory text: accrued interest 'shall be compounded annually to the extent applicable'. The calculator at the top of this page applies exactly this rule to your deposit amount and dates.
When do I get the interest?
Paid annually on the anniversary date of the tenancy; if paid on the anniversary it may be credited toward the next rental payment; if the tenancy is terminated before the anniversary date, accrued interest must be paid on or after the date of termination (statute text as amended by P.A. 23-207; 30-day window applied before 2023).
Independent second source · 2026-10-28Related guides
- All states: security deposit interest by state · rent increase rules by state
- Tools: deposit interest calculator · rent increase calculator
- Neighboring states: Delaware · District of Columbia
This page is information, not legal advice — see the full disclaimer.