Connecticut Security Deposit Law: Limits, Deadlines, and Penalties
What Connecticut landlords can charge, when deposits must be returned, and what it costs to get it wrong. Last reviewed 2026-08-12.
How much can a landlord charge in Connecticut?
Landlords may not demand more than two months' rent as a security deposit from tenants under age 62, or more than one month's rent from tenants 62 or older. A tenant who turns 62 during the tenancy can demand a refund of any amount over one month's rent. The statute defines 'security deposit' broadly to include any advance payment other than first month's rent or a key/equipment deposit, so pet deposits and last month's rent count toward the cap.
Connecticut has no separate pet deposit statute; any pet deposit is treated as part of the security deposit and counts toward the 2-month cap (1 month for tenants 62+).
When must the deposit be returned?
The landlord must return the deposit plus accrued interest, or the balance with a written itemized statement of damages, within 21 days after the tenancy ends or within 15 days after receiving written notice of the tenant's forwarding address, whichever is later. A tenant who never provides a forwarding address in writing cannot recover double damages for late return.
If the landlord withholds any portion, the balance must be delivered together with a written statement itemizing the nature and amount of each damage claimed. There is no statutory receipt or repair-estimate threshold.
What happens if a landlord misses the deadline?
A landlord who violates the return requirements is liable for twice the full amount of the security deposit — not just twice the amount withheld. If the only violation is failing to pay accrued interest, liability is $10 or twice the accrued interest, whichever is greater.
Interest and holding requirements
Landlords must pay interest annually on the tenancy anniversary (and at termination) at not less than the Connecticut deposit index published each year by the Banking Commissioner — 0.49% for 2026. No interest is owed for any month the tenant was more than 10 days late on rent, unless the landlord charged a late fee for that month.
Deposits must be held in an escrow account at a financial institution in Connecticut, separate from the landlord's own funds. The deposit remains the tenant's property, with the landlord holding only a security interest.
Recent changes to the law
Public Act 23-207 (effective October 1, 2023) shortened the return deadline from 30 days to 21 days after termination; many older guides still cite 30 days. A 2025 bill (HB 6337) to cap all deposits at one month's rent did not pass — the two-month cap still stands.
What Connecticut landlords get wrong
Connecticut's 21-day deadline is one of the shortest in the country, and the double-damages penalty is calculated on the entire deposit, so a small mistake is expensive. The two obligations small landlords most often miss are the Connecticut escrow account and the annual interest payment — the Department of Banking publishes the required deposit index each January and handles tenant complaints. Track each tenant's anniversary date, because interest is due annually, not just at move-out. Tenants 62 and older get both a lower cap and the right to request early return of any excess.
The law itself
Frequently asked questions
How much can a landlord charge for a security deposit in Connecticut?
Up to two months' rent if you are under 62, and up to one month's rent if you are 62 or older. This cap covers all advance payments other than first month's rent, including pet deposits and prepaid last month's rent. If you turn 62 during your tenancy, you can demand a refund of anything over one month's rent.
How long does a Connecticut landlord have to return a security deposit?
21 days after the tenancy ends, or 15 days after the landlord receives your forwarding address in writing, whichever is later. The landlord must return the deposit plus accrued interest, or the balance with a written itemized list of damages. Always send your forwarding address in writing — without it, you cannot collect double damages for a late return.
Do Connecticut landlords have to pay interest on security deposits?
Yes. Landlords must pay interest at no less than the deposit index the Banking Commissioner publishes each year — 0.49% for 2026. Interest is due annually on the tenancy anniversary and at move-out. A landlord can skip interest for any month you were more than 10 days late on rent, unless they charged you a late fee for that month.
What happens if a landlord doesn't return the deposit in Connecticut?
The landlord becomes liable for twice the full amount of the security deposit, not just the portion withheld. You can sue in small claims court or file a complaint with the Connecticut Department of Banking, which investigates deposit violations. If the only failure is unpaid interest, the penalty is $10 or twice the accrued interest, whichever is greater.
Keep reading
Deposit deadlines are easy to miss — until they cost you triple.
Vantric tracks your leases, deposits, and move-out dates in one place, built for landlords with 1–10 units.
Start Free TrialThis page is general information, not legal advice. Statutes change — verify against the official text linked above or consult a local attorney before acting.