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Am I entitled to interest on my New Jersey security deposit?

Am I entitled to interest on my New Jersey security deposit?

Q: Can I put a security deposit in my savings account?

As a tenant, you cannot put your landlord's security deposit in your own savings account. The landlord is required by New Jersey law to hold the security deposit in a separate interest-bearing account. This account must be in a New Jersey bank and the landlord must inform you about the account details.

Q: Does a landlord have to give interest on a security deposit in NJ?

Yes, in New Jersey, landlords are required to pay tenants the interest earned on their security deposits. This interest must be paid annually or credited toward the rent at the lease's renewal or anniversary, as outlined in N.J. Stat. § 46:8-19(c).

Q: What is the most a landlord can charge for a deposit?

In New Jersey, the maximum amount a landlord can charge for a security deposit is typically one and a half times the monthly rent. This means if your monthly rent is $1,000, the maximum security deposit would be $1,500. Always check your lease for specific terms.

Q: Can I make a deposit to my savings account?

Yes, you can make deposits to your own savings account. However, this does not apply to the security deposit you pay to your landlord. That deposit must be held by the landlord in a separate account as required by New Jersey law.

Full question:

I am residing in New Jersey as a tenant. I received a written notice from my landlord that the security deposit paid by me was deposited in a savings bank account and is earning an interest of 7 percent per annum. Am I entitled to receive this interest?

Category: Landlord Tenant
Date: 04/07/2025
State: New Jersey

Answer:

In New Jersey, tenants are entitled to all interest earned on their security deposits. According to the law, this interest must be paid to the tenant in cash each year or credited toward the rent at the lease's renewal or anniversary. This requirement is outlined in N.J. Stat. § 46:8-19(c). The landlord must also provide written notice to the tenant detailing the bank where the deposit is held, the account type, the interest rate, and the deposit amount within specific timeframes.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

How much notice does a tenant have to give in NJ?

In New Jersey, the notice period a tenant must give to terminate a lease depends on the lease terms and the length of tenancy. For month-to-month leases, tenants typically need to provide at least 30 days' notice. For leases longer than a month, the notice period may vary, so it's essential to check the lease agreement for specific requirements.

Can I put a security deposit in my savings account?

Does a landlord have to give interest on a security deposit in NJ?

What is the law on security deposits in Massachusetts?

In Massachusetts, landlords can charge a security deposit of up to one month's rent. The deposit must be held in a separate account, and landlords must provide tenants with a receipt. Additionally, landlords must pay interest on the deposit annually, and they must return the deposit within 30 days after the tenant moves out, minus any deductions for damages.

What is the most a landlord can charge for a deposit?

Can I make a deposit to my savings account?

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