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States/Connecticut/Interest & Escrow
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Connecticut renter guide

Connecticut Security Deposit Interest & Escrow Rules

Connecticut treats the deposit as the tenant’s property held in escrow and requires interest under § 47a-21. The Department of Banking publishes the applicable rate each year; for 2026 it lists 0.49%.

Last reviewed: August 30, 20262 official sources cited
2026 interest0.49%

Published by the Connecticut Department of Banking.

EscrowRequired

The deposit is held in a qualifying Connecticut financial-institution account under the statutory framework.

Interest can affect the final refund

A final deposit audit should compare both the principal returned and the accrued interest. The statute contains special rules for late rent months and annual interest payment.

Compare this topic across states

Security Deposit Interest by State
Compare dedicated interest, bank-account and escrow rules.
Forwarding-address timing matters. Connecticut’s ordinary 21-day rule must be read together with the written forwarding-address provision. Educational information only.

Official sources

Connecticut General AssemblyConn. Gen. Stat. § 47a-21 — Security deposits ↗

Current 2026 supplement governing Connecticut security deposits, caps, forwarding-address timing, itemization, escrow, interest and remedies.

Connecticut Department of BankingRental Security Deposits — Key Issues and Guidance ↗

Current official agency guidance, including the 2026 interest rate, 21-day return rule and forwarding-address guidance.

Related Connecticut guides

Security Deposit →21-Day Rule →Deposit Limits →Forwarding Address →