Security Deposit Trust Account in Washington State

[Bo Tully]

Hi all,

I recently picked up my first single family home rental property in Washington State. I have a question regarding the account needed for holding a security deposit. The state of Washington requires security deposit funds be kept in a separate trust account. In searching the forums and chatting with multiple landlords in the state, many claim that the account does not need to be a trust account, but rather a separate savings account will work as long as there is no co-mingling of funds. If anyone has experience or guidance on this topic that would be greatly appreciated!

Also, it the rule states the security deposit must be held at a bank within the state. I assume if the security deposit account is at a national bank that I am covered on this front. Any thoughts? I spoke with a banker and they said that should work fine but they didn't have experience working with real estate investors so was hoping to get some more feedback. 

Thanks in advance for your help with this topic!

-Bo