Illustrative Example
This story is based on typical security deposit disputes in Hartford. It illustrates common scenarios and outcomes under CT Gen Stat §47a-21. It is not a real client case.
The Situation
This is an illustrative example based on typical security deposit disputes in Hartford. A renter lived in a Hartford apartment for three years and moved out. Connecticut General Statutes §47a-21 requires landlords to hold deposits in interest-bearing accounts and pay interest at a rate set by the Connecticut Banking Commissioner. The landlord returned $1,400 without the $108 in accrued interest.
What Happened
Track deposit interest obligation
The tenant researched Connecticut's deposit law mid-tenancy and noted CT Gen Stat §47a-21's interest requirement. Connecticut requires interest to be paid annually or at end of tenancy at the rate set by the Banking Commissioner. Over three years, the interest obligation accumulated.
Receive deposit without interest
The landlord returned the full $1,400 deposit within Connecticut's 30-day window but included no interest calculation. Three years at applicable Connecticut rates totaled approximately $108.
Demand letter for accrued interest
The tenant sent a certified demand letter citing CT Gen Stat §47a-21, attaching an interest calculation using the Banking Commissioner's published rates, and demanding $108 within 14 days. Connecticut's statute includes penalties for failure to pay required interest.
Interest paid
The landlord paid the $108 in interest. The total recovery was $1,508 - the full deposit plus all accrued interest.
The Outcome
Connecticut's interest-bearing deposit requirement adds a modest but real recovery to every tenancy. Landlords who pay the deposit but forget the interest have still violated the statute. The $1,508 total recovery was $108 more than the tenant would have received without knowing their rights.
Key Lesson
In states requiring deposit interest (CT, NJ, MA, and others), always calculate the accrued amount before move-out and include it in your demand letter - it is real money you are owed by law.
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