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

Yes. New York requires a landlord to pay the tenant interest on a security deposit. Buildings of six or more units must hold the deposit in an interest-bearing New York account; the owner may keep 1 % as an administrative fee. The deposit itself must be returned within 14 days of the end of the tenancy. This is N.Y. Gen. Oblig. Law § 7-108(1-a).

WhatNew York
Interest payableYes
How it worksBuildings of six or more units must hold the deposit in an interest-bearing New York account; the owner may keep 1 % as an administrative fee.
Deadline to return the deposit14 days

Source

N.Y. Gen. Oblig. Law § 7-108(1-a) — last checked 2026-09-15.

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 lease and 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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