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.

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

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