What New Jersey Deposit Interest Works Out To
New Jersey does not publish a single rate — it is a variable money market rate, reset at least quarterly — so there is no fixed table to print. The calculator above takes whatever rate applies to the account and shows what it produces over the holding period. The rate usually appears on the annual statement or the notice naming the bank where the deposit sits.
When the Interest Is Never Paid
Deposit interest is one of the more commonly overlooked obligations in residential tenancy, partly because the amounts are small enough that neither side tracks them and partly because it is often owed annually while the deposit itself only comes up at move-out. A tenant who has never received an interest payment or an annual statement has usually not been told the obligation exists.
What tends to matter is documentation rather than argument. The lease records the deposit amount and the date it was paid. Bank records show when it cleared. The statute supplies the rate and the schedule, and the arithmetic follows from those three things. Where a landlord is required to give an annual statement naming the bank and the interest payable, the absence of that statement is itself part of the record.
How New Jersey Compares to Nearby States
Deposit interest is one of the sharpest state-line differences in residential tenancy: neighboring states frequently land on opposite sides of it.
The full picture across all 51 jurisdictions is on the deposit interest by state index.
Common Questions About New Jersey Deposit Interest
Does my landlord have to pay interest on my security deposit in New Jersey?
Yes. New Jersey requires it under N.J.S.A. 46:8-19, verified as of September 11, 2026. Landlords renting 10 or more units must invest the deposit in an insured money market fund or an insured bank account at the variable rate above. Landlords with fewer than 10 units hold the deposit in an account bearing the institution's current savings rate. The rate is a variable money market rate, reset at least quarterly. Annually, in cash or credited toward rent. Once notified, subsequent interest payments are made on January 31 each year.
How much interest is a security deposit worth in New Jersey?
New Jersey does not set a single published percentage — the rate is a variable money market rate, reset at least quarterly, so the amount depends on the account the deposit is held in. The calculator on this page takes a rate and shows what it produces across a range of deposit sizes and holding periods.
When does a New Jersey landlord have to pay the interest?
Annually, in cash or credited toward rent. Once notified, subsequent interest payments are made on January 31 each year. The deposit itself is subject to a separate deadline: 30 days after the tenancy ends.
What is unusual about the New Jersey rule?
A landlord who fails to invest the deposit correctly, give the required notice, or pay the annual interest can be liable for interest at 7% per annum instead, which is far above any market rate.