Non interest bearing accounts to hold Deposits?

6 Replies

Hi, 

   Anybody has any recommendation of any financial institution accounts that are non-interest bearing deposits,  to hold the tenants deposit amounts? The few institutions I reached out does not have what I need. 

Thanks. 

I have never heard of an account that does not get interest. From my quick bit of research I think you are going to have to call a lot of different banks to find one. Try checking accounts. Why do you want it to be non-interest bearing anyways?

In many places, if not all, if a tenant's deposit earns interest, you have to give it to the tenant.  Accounting nightmare.

Originally posted by @Wayne Brooks :

In many places, if not all, if a tenant's deposit earns interest, you have to give it to the tenant.  Accounting nightmare.

How do I figure out if I need to give them the interest?

State laws.

PNC has them.

First some comments:

It's not that much of a nightmare to figure out the interest return to the tenant, particularly in these days of such low interest returns.  My tenant deposit account currently earns 16 cents per month - that's with 3 tenants in it.  Shouldn't be too difficult to separate it out.  It's just math.  And since their interest return will be less than $10, there's no need to do a 1099-INT to them.

But for those determined not to earn interest, just stick it in a no-fee checking account.  

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