Connecticut security deposit law

A landlord may not demand a security deposit of more than two months' rent from a tenant under 62, or more than one month's rent from a tenant 62 or older. Any advance rental payment counts as a security deposit, except an advance payment of the first month's rent and a deposit for a key or special equipment.

Conn. Gen. Stat. § 47a-21(a)(11), (b)

• If a tenant turns 62 after paying a deposit larger than one month's rent, the landlord must return the part above one month's rent when the tenant asks. Conn. Gen. Stat. § 47a-21(b)(2)
• The deposit remains the tenant's property. The landlord holds only a security interest in it, and the landlord's creditors cannot attach it. Conn. Gen. Stat. § 47a-21(c)
• Apart from the deposit, the first month's rent, a key or equipment deposit and a capped screening report fee, a landlord may not demand any other payment before or at the start of the tenancy. Conn. Gen. Stat. § 47a-4d(b) See Application and screening fees on the Connecticut page

Return the deposit with its accrued interest within 21 days after the tenancy ends, or within 15 days after receiving the tenant's forwarding address in writing, whichever is later. If you keep any part for damages, send the balance with a written statement itemizing the nature and amount of each deduction.

Conn. Gen. Stat. § 47a-21(d)

• Deductions are limited to the tenant's obligations: unpaid rent or utility payments owed to the landlord, damage from the tenant's breach of their statutory duties, and the reasonable cost of a lock change the tenant asked for under the protective order section and did not pay. Conn. Gen. Stat. § 47a-21(a)(14), (d)(2)
• A landlord who breaks these rules is liable for twice the amount of the deposit. If the only failure is the interest, the liability is $10 or twice the interest, whichever is greater. Conn. Gen. Stat. § 47a-21(d)(2)
• A landlord who knowingly and wilfully fails to pay a deposit when due can be fined up to $250 per offense, unless the landlord believed in good faith that the deductions were owed. Conn. Gen. Stat. § 47a-21(k)(1)
• You may not keep any part of the deposit for a condition noted on a move-in walk-through checklist. Conn. Gen. Stat. § 47a-7c(b) See Move-in condition on the Connecticut page
• In small claims, a judge may award the double damages on a deposit claim even when the total exceeds the $5,000 small claims limit. Conn. Gen. Stat. § 51-15(d) See Small claims court on the Connecticut page

Put the entire deposit immediately into an escrow account for the tenant at a bank, savings bank or savings and loan located in Connecticut. Within 30 days of receiving the deposit, or of moving it, tell the tenant in writing the amount held and the name and address of the institution. Pay interest each year at no less than the deposit index for that year. Checked October 13, 2026: the Department of Banking publishes 0.49% as the rental security deposit interest rate for calendar year 2026. Check its annual rate history for earlier years and the next published rate for later years; do not apply the 2026 figure to every year of a tenancy.

Conn. Gen. Stat. § 47a-21(a)(5), (h), (i) Department of Banking: 2026 deposit interest rate

• On each anniversary of the tenancy, pay the interest to the tenant or credit it toward the next rent payment, as you choose. If the tenancy ends before an anniversary, or you return the deposit early, pay the accrued interest within 21 days. Conn. Gen. Stat. § 47a-21(i)
• No interest is owed for a month in which the tenant was more than ten days late with rent, unless you charged a late fee for that month. You may not raise the rent because you must pay interest. Conn. Gen. Stat. § 47a-21(i)
• The interest rule does not apply to housing an educational institution owns or controls for its students and their families. Conn. Gen. Stat. § 47a-21(i)
• A lease term by which the tenant gives up deposit interest is unenforceable. Conn. Gen. Stat. § 47a-4(a)(4), (b)
• If the Banking Commissioner asks in writing for information about a tenant's deposit, including the institution and account number, you must answer within seven days. Conn. Gen. Stat. § 47a-21(h)(4)(B)
• A knowing and wilful escrow violation can bring a fine of up to $500, up to 30 days in jail, or both. It is a defense that the landlord leased to fewer than four tenants who paid deposits. Conn. Gen. Stat. § 47a-21(k)(2)
• When you sell the property, transfer the deposits and interest to the buyer, who becomes responsible for returning them. Conn. Gen. Stat. § 47a-21(e), (h)(3)

For a lease entered into on or after January 1, 2024, offer the tenant a walk-through of the unit after signing and before move-in. If the tenant accepts, both of you use the Department of Housing's standard checklist, note every existing condition, defect or damage, sign duplicate copies and each keep one.

Conn. Gen. Stat. § 47a-7c(a)

• You may not keep any part of the deposit, or seek payment, for a condition noted on the checklist. Conn. Gen. Stat. § 47a-7c(b)
• The checklist is admissible as evidence of the unit's condition at move-in, but it is not conclusive. Conn. Gen. Stat. § 47a-7c(b)