Bank Account for Security Deposit

[Rachel Lyle Bridgers]

Hi,

Legally, are you required to have a separate bank account for security deposits? If your bank has a minimum balance is it alright to put personal money in the account when you don’t have security deposit money in there? Is that considered co-mingling even if the only money in there is your personal money? Also, won’t that make things messy for accounting to be moving personal money in and out? Thanks so much!

[Bob Okenwa]

I cannot speak to the laws in your area, but I'd strongly suggest having a separate account in which you hold security deposits. Commingling funds can cause huge accounting headaches that you really don't want or need.