What is the law for a Tenant Earning Interest on a Security Deposit in New York?

In New York, a landlord of a building with six or more units must put the money in an interest bearing account. Each tenant must be informed of the name and address of the Bank and the amount of money deposited.

Your landlord may collect an annual administrative fee of one percent of the deposit. Beyond that, any interest earned belongs to the tenants. It is your right to decide to have that interest paid to you annually, in the form of a rent credit, or at the end of your occupancy of the rental property. If your building has fewer than six units but your landlord chose to place your security deposit in an interest bearing account, he or she must abide by the same rules as stated above. For more information on the rules governing security deposit refund in New York please see the links below.