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General Landlording & Rental Properties

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Brian Warren
  • Rental Property Investor
7
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49
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Security deposit in a high yield account

Brian Warren
  • Rental Property Investor
Posted Nov 7 2019, 23:11

I understand that I need to hold the tenants security deposit in a separate account... I was thinking of putting into a high yield savings account 1.9% or possibly putting into a 12 month certificate of deposit at about a 2.1% yield, Has anyone ever done this? Does anyone have a strategy that they feel strongly about? Or is this just not worth the hassle? My line of thinking is that they will be signing a 1 year lease and I will be holding the deposit for 1 year anyhow I may as well get a little interest on it.

Concerns are if they break the lease early..

but most cases I think of that is the case they will be forfeiting the deposit anyway..

Open to thoughts or opinions please

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