Connecticut security deposit rules.
The Connecticut rules for residential security deposits in plain English: how much can be charged, how fast it comes back, whether interest is owed, and what catches operators out.
Last reviewed · Statute: Conn. Gen. Stat. §§ 47a-21 et seq. · Not legal advice
How much can be charged
Capped at two months’ rent for tenants under 62, and one month for tenants aged 62+.
When it has to come back
21 days from termination of tenancy or 15 days from receipt of the tenant’s written forwarding address, whichever is later (P.A. 23-207 cut this from 30 days), with itemised deductions and accrued interest. Missing it means liability for twice the deposit.
Interest
Interest must be paid annually (or credited to rent) at the rate set by the Connecticut Department of Banking each January.
Where the money has to sit
Deposits must be held in an escrow account at a Connecticut-licensed financial institution.
What catches operators out
- Annual interest publication: rate is set every January by the Banking Commissioner — landlords must use that exact rate.
- Senior tenants (62+) get a strict 1× rent cap.
- Knowing and wilful failure to pay required interest is a fine of up to $100 per offence; the tenant recovers the unpaid interest, and double damages apply if the deposit itself comes back late.
What this looks like with Standby in Connecticut.
When a resident takes a Standby certificate there is no cash deposit to hold, so the cap, the return deadline and the interest rules above have nothing to attach to. You are covered up to the full deposit and draw on it when you need to.
When a resident pays cash instead, Standby handles that deposit under your lease and Connecticut law, so your team is not tracking interest and return deadlines by hand.
This page summarises the most common single-family and multifamily residential rule in Connecticut. Furnished units, senior leases, mobile-home tenancies and short-term rentals can differ, and city ordinances may override the state default. Check the statute before relying on a figure for a specific lease.