You can create dedicated virtual Checking (non-interest-bearing) or Savings (interest-bearing) accounts within Baselane Banking to hold tenant security deposits. These accounts keep deposits separate and organized for proper record-keeping. Because state requirements for holding security deposits vary, landlords should confirm their state’s guidelines. A state-by-state guideline can be found here.
In this article, we will cover
How Baselane Supports Holding Security Deposits
Security deposits can be stored in dedicated virtual Baselane Banking accounts to keep funds separate, organized, and easy to track. Landlords may choose between:
Virtual Checking account (non-interest-bearing)
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Virtual Savings account (interest-bearing)
View our current APY tiers for more details.
All virtual accounts are business banking accounts opened under the legal entity name of the banking account, not under the tenant’s name.
Baselane does not offer escrow accounts or trust accounts.
All accounts are opened through Thread Bank, located in Tennessee.
It is the landlord’s responsibility to ensure the chosen account type complies with applicable state laws.
How to Create a Virtual Account for Security Deposits
You can create a separate virtual account at any time from your Baselane Banking dashboard.
Navigate to Baselane Banking
In the Accounts section, select your Baselane Banking account.
Select Add virtual account.
Choose a Checking account or a Savings account.
Add an account nickname: (Example: “123 Main St – Security Deposit”)
(Optional) Enable Auto-tag so transactions automatically assign to the correct property or unit.
Agree to the terms and select Create account.
Your new virtual account will appear immediately and can be selected in the Rent Collection setup when designating where security deposits should be deposited.
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