Connecticut Security Deposit Law

Maximum deposit

Landlords may not demand a security deposit above two months' rent, or above one month's rent from a tenant aged 62 or older (Conn. Gen. Stat. § 47a-21(b)). (Conn. Gen. Stat. § 47a-21(b))

Two months' rent; one month's rent for tenants 62 or older

Return deadline

Landlords must return the deposit plus accrued interest, or the balance with an itemized statement of damages, within 21 days after the tenancy ends or 15 days after receiving the tenant's written forwarding address, whichever is later (Conn. Gen. Stat. § 47a-21(d)(2)). (Conn. Gen. Stat. § 47a-21(d)(2), P.A. 23-207, § 38 (30 → 21 days, eff. Oct. 1, 2023))

Itemized statement of deductions

A landlord who deducts damages must send a written statement itemizing the nature and amount of the damages with the balance of the deposit (Conn. Gen. Stat. § 47a-21(d)(2)). (Conn. Gen. Stat. § 47a-21(d)(2))

Interest on the deposit

Landlords must pay interest on security deposits at no less than the yearly deposit index (0.49% for 2026), paid or credited each tenancy anniversary and with the deposit at move-out (Conn. Gen. Stat. § 47a-21(i)). (Conn. Gen. Stat. § 47a-21(h), (i), CT Department of Banking, Deposit Index and Interest Rates (2026: 0.49%))

Interest at no less than the deposit index set yearly by the Banking Commissioner (0.49% for 2026), paid or credited on each tenancy anniversary and at move-out; deposits must be held in a Connecticut escrow account

Penalty for wrongful withholding

A landlord who misses the return or itemization rules owes the tenant twice the security deposit, or the greater of $10 or twice the interest if only interest was withheld (Conn. Gen. Stat. § 47a-21(d)(2), (k)). (Conn. Gen. Stat. § 47a-21(d)(2), (j), (k), P.A. 26-79, § 3 (Banking Commissioner civil penalties, eff. Oct. 1, 2026))

Where the deposit is held

Connecticut landlords must immediately deposit the whole security deposit into an escrow account at a Connecticut financial institution held for the tenant's benefit (Conn. Gen. Stat. § 47a-21(h)(1)). (Conn. Gen. Stat. § 47a-21(a)(3), (a)(5), (h)(1)-(2), (k)(2))

The full deposit must go immediately into one or more escrow accounts at a bank or savings institution located in Connecticut, held for each tenant's benefit and shielded from the landlord's creditors; withdrawals are limited to refunds, interest, permitted deductions and transfers. A knowing, wilful violation is punishable by a fine of up to $500 and/or 30 days in jail.

Receipt or written notice of the deposit

Within 30 days of taking a deposit, a Connecticut landlord must tell the tenant in writing how much is being held and the name and address of the bank holding it (Conn. Gen. Stat. § 47a-21(h)(4)(A)). (Conn. Gen. Stat. § 47a-21(h)(4))

Within 30 days after receiving the deposit (or moving it to a new bank or account), the landlord must give the tenant written notice of the amount held and the name and address of the financial institution. The landlord must answer a Banking Commissioner request for account details within 7 days.

Move-in condition checklist

For leases signed since January 1, 2024, Connecticut landlords must offer a pre-move-in walk-through on the state checklist and cannot deduct from the deposit for any damage recorded on it (Conn. Gen. Stat. § 47a-7c). (Conn. Gen. Stat. § 47a-7c, P.A. 23-207, § 4)

Before move-in the landlord must offer a joint walk-through; if the tenant accepts, both use the Department of Housing's standard checklist, note existing defects, and sign duplicate copies. The landlord may not keep any deposit for a condition noted on the checklist. Applies to rental agreements entered into on or after Jan. 1, 2024.

Pet deposits

Connecticut's only pet-specific rental rule lets landlords leave a pet fee or pet deposit out of the advertised rent; there is no separate pet-deposit cap (Conn. Gen. Stat. § 47a-7d(b)(2)). (Conn. Gen. Stat. § 47a-7d(b)(2) (added by P.A. 25-44, § 9), Conn. Gen. Stat. § 47a-4d(b))

A pet fee or pet deposit may be left out of the advertised rent (unlike other recurring charges), but Connecticut sets no separate pet-deposit cap or pet-specific deposit rule.

Nonrefundable fees

Since October 1, 2023, Connecticut has banned application-processing fees and move-in or move-out fees, allowing only the deposit, first month's rent, key or equipment deposits, and a screening-report fee of up to $50 plus inflation (Conn. Gen. Stat. § 47a-4d). (Conn. Gen. Stat. § 47a-4d, P.A. 23-207, § 6 (Effective Oct. 1, 2023))

Before or at the start of a tenancy a landlord may collect only a security deposit, first month's rent, a key or special-equipment deposit, and a tenant-screening fee of up to $50 (CPI-adjusted) backed by a copy of the report and the vendor's receipt. Application/processing fees and move-in or move-out fees are banned.

Small-landlord exemptions

Connecticut's deposit rules cover small landlords too, except that one renting to fewer than four deposit-paying tenants has a defense to the criminal fine for escrow violations (Conn. Gen. Stat. § 47a-21(k)(2)). (Conn. Gen. Stat. § 47a-21(k)(2))

Only a criminal-fine defense: a landlord charged with knowingly and wilfully breaking the escrow rules has an affirmative defense if it leased to fewer than four tenants who paid deposits. The cap, return deadline, interest and double-damages rules still apply to every landlord.

Deposit alternatives and installments

Connecticut's only deposit-alternative rule requires state-assisted senior and disabled public housing to accept the deposit in equal installments over at least 12 months; private landlords have no such duty (Conn. Gen. Stat. § 47a-22a(b)). (Conn. Gen. Stat. § 47a-22a(b), Conn. Gen. Stat. § 47a-21(a)(11))

State-assisted public housing for elderly and disabled tenants must let tenants pay the deposit in equal installments at intervals of no more than a month over at least 12 months, by written agreement. No statute regulates surety bonds, deposit insurance or waiver fees for private landlords.