Security Deposits - can bank set up happen virtually?

Question

Hi all,

In MA, my understanding is that landlords have to hold security deposits in a bank within the state that is interest bearing. The one I've been using requires me to go into the bank to sign with each tenant turnover.

Does anyone have a bank or strategy where they don't have to do to the bank themselves?

Thank you!

Tj Collins · Answer

@Sabrina Speights I recently launched a free software platform called Passive, which does exactly what you're looking for. You just enter the tenants info and then we automate the entire process of setting up the correct bank account, sending receipts, paying interest, and closing the deposit at the end of the lease. Feel free to message me if you want to check it out. Should save you a ton of time.

Alin Dev · Answer

checkout https://www.zdeposit.net/ this is a subsidiary of Leader Bank. I have been using them since early 2018 and have been a happy customer so far.

Axel Meierhoefer · Answer

I just did a few minutes Google searching and found this. There are probably more: https://www.massbaycu.org/access/online-banking/

Sabrina Speights · Answer

Thanks for the reply. I was hoping folks has suggestions because I kept running into dead ends because the physical bank location of the online bank platforms need to be in the state to follow the rules for MA.

Theresa Harris · Answer

Look for an online bank. There are several in Canada (simplii, tangerine, etc), so there have to be some in the US.  You set up everything online and via phone.  They partner with banks that have a physical presence, so you can use their ATM.