Security Deposit Bank Account

banks have special accounts for this, where the tenant is setup to get the interest reported on their taxes. There is some kind of requirement based on the size of the building as to whether or not you need to put the security in an interest bearing account like this. Ask your bank.

Also, it needs to be a NY state bank account, supposedly.

And never mingle any of your funds with it.

What does your lease say?

If you are a first time landlord, how many units are you renting out? More rules if you rent over 6 units.

http://www.housingnyc.com/html/resources/faq/security.html

I'm renting my co-op which is in a building with more than 6 units, so I'm already aware it should be an interest bearing account.

I think you are getting a little confused here. Do you own this building of 6 units and if so are all these units being rented out?
If you own just own one unit I don't believe you are required to place security deposit into an interest bearing account no matter how many units are in building.

meant to say if you own just one unit.

I own one co-op apt. that I will sublet...which banks offer security deposit accounts for one apt?....my bank HSBC only does if you have 5 apts. to rent...I don't.