# New York — Security deposit interest requirements by US state — which states make a landlord pay interest on a held deposit, and at what rate, quoted from the statute

For New York, interest required is Yes; rate or how it's set is a rate which shall be the prevailing rate earned by other such deposits made with banking organizations in such area; condition that triggers the duty is Only where the rented property contains six or more family dwelling units; citation is N.Y. Gen. Oblig. Law § 7-103(2), (2-a), recorded from its source on 2026-09-02.

- **Jurisdiction:** New York _(our reading, not quoted from the source)_
- **Interest required:** Yes _(our reading, not quoted from the source)_
- **Rate or how it's set:** a rate which shall be the prevailing rate earned by other such deposits made with banking organizations in such area _(verified: appears in the quote below)_
- **Condition that triggers the duty:** Only where the rented property contains six or more family dwelling units _(our reading, not quoted from the source)_
- **Citation:** N.Y. Gen. Oblig. Law § 7-103(2), (2-a) _(our reading, not quoted from the source)_

## What the source says

> If the person depositing such security money in a banking organization shall deposit same in an interest bearing account, he shall be entitled to receive, as administration expenses, a sum equivalent to one per cent per annum upon the security money so deposited, which shall be in lieu of all other administrative and custodial expenses. The balance of the interest paid by the banking organization shall be the money of the person making the deposit or advance and shall either be held in trust by the person with whom such deposit or advance shall be made, until repaid or applied for the use or rental of the leased premises, or annually paid to the person making the deposit of security money. 2-a. Whenever the money so deposited or advanced is for the rental of property containing six or more family dwelling units, the person receiving such money shall, subject to the provisions of this section, deposit it in an interest bearing account in a banking organization within the state which account shall earn interest at a rate which shall be the prevailing rate earned by other such deposits made with banking organizations in such area.

## Source

- https://newyork.public.law/laws/n.y._general_obligations_law_section_7-103

Last verified: 2026-09-02. Review by: 2027-03-01.
Part of [Security deposit interest requirements by US state — which states make a landlord pay interest on a held deposit, and at what rate, quoted from the statute](https://referencesource.org/security-deposit-interest-requirements-by-state/).