Security Deposits in Delaware

[Mario Ciccarelli]

I've contacted two attorneys so far and I've yet to hear back so I figured I would post it here too. The Delaware landlord-tenant code states: 

"Each security deposit shall be placed by the landlord in an escrow bank account in a federally-insured banking institution with an office that accepts deposits within the State. Such account shall be designated as a security deposits account and shall not be used in the operation of any business by the landlord. The landlord shall disclose to the tenant the location of the security deposit account."

So, I need an interest bearing savings account for each unit or tenant. Since I'm renting rooms for a househack, I will need one per tenant. Capital One offers a 360 savings account where you can add up to 25 sub-accounts. That would be perfect. BUT there are no Capital One banks within the state of Delaware. So is it legal for me to use that? Or do I need to open a bunch of savings accounts at my local credit union? 

PS: I moved here from out of state in October so feel free to connect! I need some Delaware BP friends

[John T.]

I didn't see anything in the law you quoted that required a separate escrow account for each tenant.  It makes sense to me to place all security deposits in one single escrow account.  Any good accounting software (like QuickBooks, etc.) should be able to separately account for each separate security deposit in the single escrow account.

Also, I didn't see anything in the quoted statute that required you to deposit the security deposit into an interest bearing account.