Security Deposit Interest Calculator — New Jersey
Calculate the interest you owe a New Jersey tenant on their security deposit, using the state's own rule and statute.
The rate equals what your bank actually paid. Enter your account's rate for an accurate figure.
Interest owed to tenant
$4.06
- Time held
- 2.03 yrs
- Total to return
- $2,004.06
New Jersey rule
Deposits must be held in an interest-bearing account; the tenant receives the interest the account actually earns (an insured money-market/savings rate for landlords with 10+ units). Failing to comply lets the tenant claim 7% per year.
When paid: Annually, either paid or credited toward rent.
Last verified June 12, 2026.
Not legal advice. LandlordKit provides general informational tools, not legal advice. Landlord-tenant laws change and vary by city and county. Verify the cited statute and consult a licensed attorney before acting on any result.
How New Jersey treats security deposit interest
Deposits must be held in an interest-bearing account; the tenant receives the interest the account actually earns (an insured money-market/savings rate for landlords with 10+ units). Failing to comply lets the tenant claim 7% per year.
When it must be paid: Annually, either paid or credited toward rent.
Worked example
Example: a $1,500.00 deposit held for 2 years at 0.10% per year. Simple interest owed ≈ $3.00, so the landlord returns about $1,503.00 in total. (Rates can change year to year — confirm the current figure.)Last verified June 12, 2026.
New Jersey security deposit obligations
Even where interest isn't required, New Jersey still regulates the deposit itself: you generally must return it within 30 days of move-out (N.J. Stat. § 46:8-21.1). You must include an itemized statement of any deductions. Double damages plus fees for wrongful withholding.
Open the New Jersey deposit return tracker to confirm the deadline and build an itemized deductions statement.
New Jersey security deposit interest FAQ
Do landlords have to pay interest on security deposits in New Jersey?+
Yes. Deposits must be held in an interest-bearing account; the tenant receives the interest the account actually earns (an insured money-market/savings rate for landlords with 10+ units). Failing to comply lets the tenant claim 7% per year. (N.J. Stat. § 46:8-19).
How is security deposit interest calculated in New Jersey?+
Interest is simple (non-compounded). Multiply the deposit by the annual rate and by the number of years held. Interest accrues from the start of the tenancy.
When must New Jersey landlords pay the interest to the tenant?+
Annually, either paid or credited toward rent.
When must a New Jersey landlord return the security deposit?+
Generally within 30 days of move-out (N.J. Stat. § 46:8-21.1). Use the LandlordKit deposit return tracker for the exact rule and an itemized statement.
Is the LandlordKit security deposit interest calculator free?+
Yes — it's completely free, requires no signup, and you can download a PDF interest statement to give your tenant.
Other states
Need the full picture? See the security deposit interest calculator for all states.