Financing in 07111>Question Details

Delapm, Other/Just Looking in Los Angeles, CA

How do I calculate the interest earned on my security deposit, with a different interest rate each year, and?

Asked by Delapm, Los Angeles, CA Wed Jul 29, 2009

prorating for the first and last year, since I moved in in April the first year, but moved out at the end of July the last year? Principal amount was $2500, 1st year interest rate was 1.74%, 2nd year was 2.39%, 3rd year was 3.33% and now this year is 1.76%. Thank you!

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what is the interest for a principle of 1200 and the rate was 0.013% for an entire year
0 votes Thank Flag Link Thu Feb 26, 2015
RE: MY FIRST ANSWER BELOW TO YOUR QUESTION. We finally got the tracking number from the landlord on a text msg and yesterday, I went to the PO & got the certified mail with a nasty letter and some computer copies of damages ( they claim) but no receipts AND NO BANKBOOK as required by law. That's because they never opened an account as they should have according to law. They said their time wasn't worth arguing about $900. But they only added on &90 interest which was short about $80. She workes in a bank & could have gotten the exact amt from a bank program but since we got $990, we're happy and it shows they did not follow the law so they knew it & if we went to court in NJ, they would have had to pay double the deposit and double the interest. I wish you luck but you have to pursue it.
Mr. Shalfrey who commented after me has the best advice for landlords ( I used to be one) go to the bank immediately and open an account in two names yours & the renter but the landlord keeps the book & let the bank do the interest calculations when the tenant gives notice. BUT, because of circumstances, we did not do a final walk through with them and left them a fairly new stove, refrigerator ( there wasn't any when my daughter moved in) and some other great items. They said they never asked for them so they do not enter into the story. Bad people who tried to get away with it. Don't let anyone get away with anything.

Again, fight it for the principal. We would have rather paid a lawyer with the money than let them have it.
0 votes Thank Flag Link Tue Oct 18, 2011
NJJoany gives the correct information. May I suggest that with the next tenant, you start a new bank accout with the deposit and just let the bank do the interest calculations like they would a normal savings account. I think this would be the easiest way to track for future tenants.
0 votes Thank Flag Link Mon Oct 17, 2011
Get your bank to run a report on this for you. A computer program with actuarial sums to get the total owed to you. some agents have shown interest rates "Annually". That is incorrect ; it is compounded monthly so each month has the interest from the previous month added on. 3 years isn't bad to do by yourself and a calculator but we need the rates compounded monthly from 2001 to 2011 --10 years. That should add up to a nice sum and in NJ the Law says that the interest belongs solely to the tennant and any repairs cannot be deducted from the INTEREST!/ look it up http://www.lsnjlaw.org/english/placeilive/irentmyhome/securi…
0 votes Thank Flag Link Sun Oct 16, 2011
Question:

Lease period is from 3/15/09-3/31/11 in Chicago, IL what is the interest rate earned that I need to pay back to tenant?
0 votes Thank Flag Link Tue Apr 12, 2011
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