Answers / Tenant rights
TENANT RIGHTS

Is my landlord supposed to pay interest on my security deposit?

SHORT ANSWER

In some states and cities, yes — landlords must hold deposits in interest-bearing accounts and pay you the interest. It depends entirely on your location.

Whether your deposit earns interest depends on where you live. A number of states and cities require landlords to keep security deposits in separate interest-bearing accounts and pay you that interest, often annually or when you move out. Others have no such rule. Some also require the landlord to tell you where the deposit is held. If your jurisdiction mandates interest and you never received it, that may be another claim on top of the deposit itself. Check your specific state and city rules.

What to do, in order

  1. Check whether your state or city requires deposit interest.
  2. Look for any requirement that the deposit be held separately.
  3. See if the landlord disclosed where your deposit is held.
  4. Calculate any interest owed for your rental period.
  5. Request unpaid interest in writing if it’s required.

Common questions

Which states require interest on security deposits?

Several states and cities do, but rules vary widely — some require it, most don’t. Check your specific state and municipality.

What if my landlord didn’t pay required deposit interest?

You may be able to claim the owed interest, and in some places penalties, along with your deposit — typically starting with a written demand.

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Main AI explains documents and general legal rights in clear terms. It is not a law firm and does not provide legal advice. Laws vary by state and change over time — verify specifics for your jurisdiction, and consult a licensed professional for advice on your situation.