DOB: Banking Commissioner Announces 2018 Deposit Rate

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NEWS RELEASE

BANKING COMMISSIONER ANNOUNCES 2018 DEPOSIT RATE
Sets Interest for Rental Security Deposits

Department of Banking Commissioner Jorge Perez has announced the 2018 deposit index to be 0.09%.  The deposit index is used to determine the interest rates required by statute to be paid for various accounts – see attached 2018 Deposit Index Memorandum.  The index is based on average rates paid on savings deposits and must be determined annually by the Banking Commissioner.

Rental Security Deposit

Landlords and tenants have rights and responsibilities when it comes to collecting, holding, and returning rental security deposits.  For example, a tenant forfeits their interest for any months that they are more than ten days late on their rent.  When they move out, tenants must provide written notice of a forwarding address where the landlord may send their security deposit with interest.  Landlords are required to return the security deposits of their tenants with interest or give tenants written notice of damages being claimed within thirty days of when tenants move.

The 2018 interest rate for rental security deposits is 0.09%.

The Department of Banking’s website includes a section dedicated to rental security deposit issues, including a listing of previous interest rates, at www.ct.gov/dob.  For further information, contact the Department of Banking, at 860-240-8154.

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Pursuant to Section 36a-26 of the Connecticut General Statutes, the Commissioner has determined the deposit index for the calendar year 2018 to be 0.09%.

Calendar Year 2018

Account Statutory Reference Interest Rate
Rental Security Deposits 47a-21(i) 0.09%
Claims for property, funds, or money delivered to the State Treasurer 3-70a(e) 0.09%
Mortgage escrow accounts
49-2a
(section requires that the interest rate be not less than the deposit index, rounded to the nearest one-tenth of one percentage point)
0.10%
Public service company, certified telecommunications provider and electric supplier customer security deposits 16-262j(c)
(section requires that the interest rate be not less than the higher of the deposit index, rounded to the nearest one-tenth of one percentage point, or 1.5%)
1.5%

These rates are for the period commencing January 1, 2018 and ending December 31, 2018.

PLEASE NOTE:  The interest rates provided herein are done as a convenience to the public; the Commissioner has no authority to establish interest rates beyond what is provided in statute.  Accordingly, parties required to pay interest under these sections must ensure compliance with the applicable statute(s).