It’s a new year, and you may need to update your billing records and/or tariffs to reflect changes in the amount of interest to be paid on customer deposits. More than 20 states set/reset the interest rate to be paid on customer deposits on an annual basis. One state – Nevada – adjusts the rate twice each year. The interest that must be paid ranges from 0% in Illinois to 12% in Rhode Island. TMI staff tracks those changes and more.
Many states require that interest be paid only when deposits are held over a specific period of time or on deposits over a specific dollar amount. For example, in Alabama and in California interest must be paid on deposits held more than 30 days. However, in Mississippi, interest is only paid on deposits held more than one year. In Alaska interest must be paid only on deposits over $100.
But then some states don’t regulate deposits at all! Since we collect all the Commission rules regulating customer deposits, a number of carriers (our clients) use TMI’s Customer Relations Rules App. to help update their billing systems. If it’s time for your billing audit, you may need to verify:
- when deposits are allowed
- the amount
- whether interest must be paid and
- when the deposit must be returned to the customer.
Download an example of this information via the button below.