I'm buying a duplex in Florida and the tenant is already in place during the closing the seller is moving the security deposit over to me. Can I keep the tenant's security deposit in an online bank? I know the official law says the below. But technically Wells Fargo and big banks here are not headquartered in Florida.
"Hold the total amount of such money in a separate non-interest-bearing account in a Florida banking institution for the benefit of the tenant or tenants. The landlord shall not commingle such moneys with any other funds of the landlord or hypothecate, pledge, or in any other way make use of such moneys until such moneys are actually due the landlord"
It looks like, by the letter of the law, the online bank is not in Florida and so should not be used. On the other hand (just my opinion) the law was written before the internet existed and wasn't written for today's circumstances. Your phone or computer are in Florida, so, your access to the money is in Florida. You would have ready, at your fingertips access to the funds when the time comes to return the money. That I believe is the spirit of the law.
Realistically, no one is every going to check to see where the funds are deposited . . . until there's a problem. So, deposit the funds. Don't comingle them. Return the funds promptly when the tenant vacates.