Originally posted by @Linda Weygant:
Keep them in a bank account, but go for one of the online accounts like discoverbank or ally bank where you can get ONE WHOLE PERCENT, rather than the 1/10 of 1% that the brick and mortar banks give you.
Thanks for the pointer - and even I want to do it like that. But, this NC specific info - http://www.ncleg.net/EnactedLegislation/Statutes/P...
is throwing me off-guard. Can you please advice - if I can still keep the security deposit in an online savings account - like discover etc (where at least the interest rate is better than any brick and mortar checking account). BTW - I am located in NC.
§ 42-50. Deposits from the tenant. Security deposits from the tenant in residential dwelling units shall be deposited in a trust account with a licensed and federally insured depository institution lawfully doing business in this State or the landlord may, at his option, furnish a bond from an insurance company licensed to do business in North Carolina. The security deposits from the tenant may be held in a trust account outside of the State of North Carolina only if the landlord provides the tenant with an adequate bond in the amount of said deposits. The landlord or his agent shall notify the tenant within 30 days after the beginning of the lease term of the name and address of the bank or institution where his deposit is currently located or the name of the insurance company providing the bond. (1977, c. 914, s. 1; 2015-93, s. 2.) § 42-51. Permitted uses of the deposit. (a) Security deposits for residential dwelling units shall be permitted only for the following:
(1) The tenant's possible nonpayment of rent and costs for water or sewer services provided pursuant to G.S. 62-110(g) and electric service pursuant to G.S. 62-110(h).
(2) Damage to the premises, including damage to or destruction of smoke alarms or carbon monoxide alarms.
(3) Damages as the result of the nonfulfillment of the rental period, except where the tenant terminated the rental agreement under G.S. 42-45, G.S. 42-45.1, or because the tenant was forced to leave the property because of the landlord's violation of Article 2A of Chapter 42 of the General Statutes or was constructively evicted by the landlord's violation of G.S. 42-42(a). NC General Statutes - Chapter 42 29
(4) Any unpaid bills that become a lien against the demised property due to the tenant's occupancy.
(5) The costs of re-renting the premises after breach by the tenant, including any reasonable fees or commissions paid by the landlord to a licensed real estate broker to re-rent the premises.
(6) The costs of removal and storage of the tenant's property after a summary ejectment proceeding.
(7) Court costs. (8) Any fee permitted by G.S. 42-46. (b) The security deposit shall not exceed an amount equal to two weeks' rent if a tenancy is week to week, one and one-half months' rent if a tenancy is month to month, and two months' rent for terms greater than month to month. These deposits must be fully accounted for by the landlord as set forth in G.S. 42-52. (1977, c. 914, s. 1; 1983, c. 672, s. 3; 2001-502, s. 5; 2004-143, s. 6; 2011-252, s. 3; 2012-17, s. 4; 2012-194, s. 59(a), (b).)
