Security Deposit Act

New Jersey’s Security Deposit Act requires that rental housing providers pay their residents accrued interest on their security deposits each year either in the form of a rental credit or a cash payment. The Act requires that payments be made each year either at lease renewal or, if the owner elects, by January 31st of each year.

When making this interest payment, owners are required to send notices to residents stating the amount of the deposit, the name and address of the bank, the type of account in which the security is deposited, and the current rate of interest for that account.