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

Yes. New Jersey requires a landlord to pay the tenant interest on a security deposit. Deposit must sit in an interest-bearing New Jersey account; interest is paid or credited annually. The deposit itself must be returned within 30 days of the end of the tenancy. This is N.J.S.A. 46:8-19 to 46:8-21.1.

WhatNew Jersey
Interest payableYes
How it worksDeposit must sit in an interest-bearing New Jersey account; interest is paid or credited annually.
Deadline to return the deposit30 days

Source

N.J.S.A. 46:8-19 to 46:8-21.1

Read the statute in the New Jersey Statutes (New Jersey Legislature): njleg.state.nj.us.

The linked sections open Justia’s free copy of the code, because the state’s own site has no stable address for each section.

This is a summary of a published statute, not legal advice. Rules change, local ordinances can add to them, and the terms of a specific lease may differ. Check the citation and speak to a lawyer before acting.

How Seayora uses this rule

Seayora computes the deadline this rule sets from the tenancy’s own dates, shows it on the deposit statement, and reminds the landlord before it falls due — so the answer above is not reference material sitting beside the product, it is the rule the product enforces.

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