We had a customer today who wanted to open a landlord account and stated that the security deposit and the last month's rent deposit had to be separate accounts. I have read MGL Chapter 186 and there is no definitive explanation that the security deposit and the last month's rent deposit have to be in separate accounts - they both are required to accrue 5% interest - your thoughts?

Section 3 of Ch. 186 includes a requirement that the security deposit be in a separate account, and that the lessee be given information about the account, including the account number. There is no such requirement for the first/last month's rents. In both cases, the amount of interest is 5% or such lesser amount of interest as the bank may pay on the account.

John, I think it is Section 15B of Chapter 186, subsection (3)(a).

You are, of course, correct. Mea culpa.