deposit-interest

Security Deposit Interest in New York: Interest actually (2026)

New York landlords must keep security deposits in trust in an interest-bearing account in a New York bank and pay the tenant the accrued interest… Calculator, statute citation, Last Verified date o

Rule verified: 2026-10-28

Quick answer

Yes — New York requires landlords to pay interest on qualifying security deposits. New York landlords must keep security deposits in trust in an interest-bearing account in a New York bank and pay the tenant the accrued interest (the landlord may keep up to 1% per year of the interest as an administrative expense) under General Obligations Law § 7-103. The rule comes from N.Y. Gen. Oblig. Law § 7-103 (return: § 7-108). State statute (official text) · 2026-10-28

Calculator pre-loaded with this state:

State pre-filled: New York — rule applied per N.Y. Gen. Oblig. Law § 7-103 (return: § 7-108). Switch the state if your property is elsewhere.

StateSecurity deposit ($)Tenancy startTenancy end

The current rate in New York

New York does not fix the rate in the statute — it moves with a benchmark: GOL § 7-103(1): money deposited as security must be kept in trust, not commingled, deposited in a banking organization in New York. Historically § 7-103(2) required the 'prevailing rate of interest paid on deposits in savings banks' (with a six-or-more-unit trigger reported by secondary sources); the 2019 Housing Stability and Tenant Protection Act changed the rule so landlords pay the interest that actually accrues, keeping no more than 1% per annum of the interest as administrative expense. Waiver is void as against public policy..

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

Not specified in sources reviewed; payout of accrued interest Accrued interest payable to the tenant (secondary sources describe annual payment); on termination, deposit must be returned with accrued interest within 14 days per GOL § 7-108 (post-HSTPA, per search snapshots)

Who the law applies to

Residential landlords statewide (post-HSTPA application is broad; the pre-2019 six-or-more-unit threshold for the bank-account requirement is reported by secondary sources — current threshold status to be verified)

Cities that add their own rules

NYC rent-stabilized tenants have additional deposit-interest rules administered by HCR (not verified in this pass — see unverified_flags).

How New York 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 | N.Y. Gen. Oblig. Law § 7-103 (return: § 7-108) | | Official text | www.nysenate.gov | | Last verified | 2026-10-28 |

Cross-checked against: NY General Obligations Law Article 7 full text (Justia reprint, used as text locator).

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 New York require landlords to pay interest on security deposits?

Yes. Under N.Y. Gen. Oblig. Law § 7-103 (return: § 7-108), qualifying landlords in New York must pay interest — currently Interest actually accrued/paid on the deposit in the interest-bearing NY bank account, minus up to 1% per year of the interest retained by the landlord as 'administrative expenses'. Residential landlords statewide (post-HSTPA application is broad; the pre-2019 six-or-more-unit threshold for the bank-account requirement is reported by secondary sources — current threshold status to be verified)

How is deposit interest calculated in New York?

At Interest actually accrued/paid on the deposit in the interest-bearing NY bank account, minus up to 1% per year of the interest retained by the landlord as 'administrative expenses'. Not specified in sources reviewed; payout of accrued interest The calculator at the top of this page applies exactly this rule to your deposit amount and dates.

When do I get the interest?

Accrued interest payable to the tenant (secondary sources describe annual payment); on termination, deposit must be returned with accrued interest within 14 days per GOL § 7-108 (post-HSTPA, per search snapshots)

Independent second source · 2026-10-28