Since I rent rather than own the apartment in which I live, my landlord is required by law to keep the security deposit I paid several years ago in an interest-bearing savings account. Although it would have been better if the company kept the security deposits in a high-yield online savings account, the funds are deposited into Wachovia, which offers a paltry 0.75% interest rate.
I received my yearly check over the weekend for this interest, which amounted to $1.86. That’s the same amount they’ve sent for the past three years. It’s “nice” to see the increase of average savings account interest rates has not affected Wachovia.
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{ 3 comments… read them below or add one }
I might be mistaken, but I believe that in the City of Chicago, the interest on the security deposit is defined by the Tenant ordinance. As of a couple of years ago, it was around 5%. It sucks that the landlord gets to “pick” where the money is kept…
In SF the interest on the deposit is 1%, more than a standard savings account at WAMU, which is like 0.26%. not that i’m letting my money accrue interest at that rate, my roommate does that.
I just got my pathetic $2 check as well, although, last year I remember including the interest (some $18, I think) as income on my taxes. What gives?