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Last verified: · Confidence: high
Do landlords have to pay interest on security deposits in Connecticut, and when is it due?
Short answer
Pay deposit interest on each tenancy anniversary (2026 rate 0.49%)
Payment timing: Each year on the lease anniversary
On the anniversary date of the tenancy and every year after, pay the tenant interest on the deposit at no less than the Banking Commissioner's deposit index for that year (0.49% for 2026), either in cash or as a credit toward the next rent payment.
"On the anniversary date of the tenancy and annually thereafter, such interest shall be paid to the tenant or resident or credited toward the next rental payment due from the tenant or resident, as the landlord or owner shall determine." cga.ct.gov
"the rate for each calendar year shall be not less than the deposit index, as defined in section 36a-26, for that year." cga.ct.gov
"the Commissioner has determined the deposit index for the calendar year 2026 to be 0.49%." portal.ct.gov
Pay deposit interest on each tenancy anniversary (2026 rate 0.49%) Verified
Deadline: Each year on the lease anniversary
On the anniversary date of the tenancy and every year after, pay the tenant interest on the deposit at no less than the Banking Commissioner's deposit index for that year (0.49% for 2026), either in cash or as a credit toward the next rent payment.
Who it covers: All residential landlords except educational institutions housing their own students. No interest is owed for a month in which rent was more than 10 days late, unless a late charge was imposed. Interest accrued before an earlier move-out is due within 21 days.
"On the anniversary date of the tenancy and annually thereafter, such interest shall be paid to the tenant or resident or credited toward the next rental payment due from the tenant or resident, as the landlord or owner shall determine." cga.ct.gov
"the rate for each calendar year shall be not less than the deposit index, as defined in section 36a-26, for that year." cga.ct.gov
"the Commissioner has determined the deposit index for the calendar year 2026 to be 0.49%." portal.ct.gov
"This interest must be paid annually on the anniversary date of a tenancy." portal.ct.gov
Notes: CGS § 47a-21(i); Department of Banking 2026 rate table. The rate changes every calendar year.
Last verified 2026-10-20 · Confidence: high · Status: verified · Report a correction