Must the Security Deposit be placed in a bank in the State (FL) in which the rental is? In Florida?

I don't know Florida laws but in Colorado it does not have to be placed in a bank in that state in which the property is located. I am not an attorney and I would encourage you to check with one that knows Florida law.

It only needs to be placed in escrow if you have over 5 rentals, I am pretty sure the number is 5.  Yes, if it is a FL rental needs to be in a FL bank.

@Janis McCarter I just read the statue, found here, and see no provision that if you own fewer than 5 rentals being exempt from keeping the SD in a Florida Bank. 

They way I read it your must keep the funds in a Florida Bank and tell the tenant where those funds are kept.

@Bill S.  You had me curious about my number.  This is from my 2015 FL course book.  You should be able to see mid way through it says the exception is for landlords with fewer than 5 units.

I understand the confusion of everybody.  I think it is Good Practice to keep the security deposit in a separate bank account.  It is hard to interpret laws and statutes correctly sometimes even when you are an attorney.

I will site that the Statute 83.49 (2) does mention the exception 5 individual dwelling units.
The course manual contradicts itself when I interpret "5 individual dwelling units And are not using the services of a Real Estate Broker" 

If you look at the Nolo (written by lawyers) website "Florida Security Deposit Limits and Deadlines" they mention the notice of "the name of the depository" "interest or non interest bearing account" and "Interest Rate" and providing a copy of the statute 83.49 (3).
Additionally in the book from attorney "Mark Warda" "Florida Landlords' Rights and Strategies" there is mention of keeping the money in a separate account.

If the lawyers advise that it should be in a separate bank account, Do you want to pay the attorney's fee to find out your wrong?

As from some attorney's No it does Not have to be in a Florida bank, it should be in a US bank, and the location of the deposit sent to the tenant.

@Jeff B. thank you for the clarification.