New York Interest on deposits

Does a landlord have to pay interest on a security deposit in New York?

Deposits are held in trust. For buildings with 6 or more units, the landlord must keep the deposit in an interest-bearing New York bank account. The landlord may keep 1% a year for administration. The remaining interest belongs to the tenant and is held in trust, credited to rent, or paid out each year.

Verified Source: N.Y. Gen. Oblig. Law § 7-103(1), (2-a) · last checked 2026-10-15