{ "name": "Security deposit interest requirements by US state \u2014 which states make a landlord pay interest on a held deposit, and at what rate, quoted from the statute", "description": "Most states let a landlord hold a security deposit with no interest owed at all. A minority require it \u2014 but the rate is rarely a flat number: Connecticut and Chicago reset their rate every year by regulator notice (Connecticut 0.49% for 2026, Chicago 0.01% for 2026), Massachusetts and New Hampshire peg it to the actual bank account or savings rate, and Minnesota is the one flat statutory rate (1% simple, non-compounded). Several also gate the duty on a condition a flat yes/no chart drops \u2014 Maryland only above a $50 deposit held 6+ months, New York only in buildings of six or more units, New Hampshire and Massachusetts only once the deposit has been held a full year. Illinois is two independent regimes, not one: the state law (765 ILCS 715) applies only to landlords owning 25 or more units and reads the largest in-state bank's passbook rate, while Chicago's own ordinance applies to any building inside city limits at a separately city-published rate \u2014 a landlord with five Chicago units owes interest under the city rule regardless of the state law's 25-unit floor. Each record carries the rate or rate-setting mechanism exactly as the statute or regulator prints it, any condition that gates the duty, and the citation, backed by a verbatim quote from the state's own statute or the regulator's own rate notice. Answers 'does my state require interest on a security deposit', 'what is the security deposit interest rate in Connecticut this year', and 'does the Illinois interest law apply to my building'.", "url": "https://referencesource.org/security-deposit-interest-requirements-by-state/", "licence": "unknown", "last_verified": "2026-09-02", "stale_after": "2027-03-01", "sources": [ "https://www.cga.ct.gov/current/pub/chap_831.htm", "https://www.chicago.gov/city/en/depts/doh/provdrs/landlords/svcs/security-deposit-interest-rates.html", "https://www.ilga.gov/Legislation/ILCS/Articles?ActID=2203&ChapterID=62", "https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=grp§ion=8-203&enactments=false", "https://malegislature.gov/Laws/GeneralLaws/PartII/TitleI/Chapter186/Section15B", "https://www.revisor.mn.gov/statutes/cite/504B.178", "https://www.gencourt.state.nh.us/rsa/html/LV/540-A/540-A-6.htm", "https://newyork.public.law/laws/n.y._general_obligations_law_section_7-103", "https://www.ndlegis.gov/cencode/t47c16.pdf", "https://codes.ohio.gov/ohio-revised-code/section-5321.16", "https://www.legis.state.pa.us/WU01/LI/LI/US/HTM/1951/0/0020..HTM" ], "records": [ { "jurisdiction": "Connecticut", "interest_required": "Yes", "rate_or_mechanism": "not less than the deposit index", "condition": "No interest for any month in which the tenant was more than ten days late with rent, unless the landlord imposed a late charge for it", "statute_citation": "Conn. Gen. Stat. \u00a7 47a-21(i); \u201cdeposit index\u201d defined at \u00a7 36a-26", "id": "connecticut", "url": "https://referencesource.org/security-deposit-interest-requirements-by-state/connecticut/", "source": "https://www.cga.ct.gov/current/pub/chap_831.htm", "source_quote": "On and after January 1, 2012, the rate for each calendar year shall be not less than the deposit index, as defined in section 36a-26 , for that year.", "verified_fields": [ "rate_or_mechanism" ], "derived_fields": [ "condition", "interest_required", "jurisdiction", "statute_citation" ] }, { "jurisdiction": "Illinois", "interest_required": "Yes", "rate_or_mechanism": "a rate equal to the interest paid by the largest commercial bank, as measured by total assets, having its main banking premises in this State on minimum deposit passbook savings accounts as of December 31 of the calendar year immediately preceding the inception of the rental agreement", "condition": "Only where the building or contiguous complex contains 25 or more units, and only on a deposit held more than 6 months", "statute_citation": "765 ILCS 715/1 (Security Deposit Interest Act)", "id": "illinois", "url": "https://referencesource.org/security-deposit-interest-requirements-by-state/illinois/", "source": "https://www.ilga.gov/Legislation/ILCS/Articles?ActID=2203&ChapterID=62", "source_quote": "A lessor of residential real property, containing 25 or more units in either a single building or a complex of buildings located on contiguous parcels of real property, who receives a security deposit from a lessee to secure the payment of rent or compensation for damage to property shall pay interest to the lessee computed from the date of the deposit at a rate equal to the interest paid by the largest commercial bank, as measured by total assets, having its main banking premises in this State on minimum deposit passbook savings accounts as of December 31 of the calendar year immediately preceding the inception of the rental agreement on any deposit held by the lessor for more than 6 months.", "verified_fields": [ "rate_or_mechanism" ], "derived_fields": [ "condition", "interest_required", "jurisdiction", "statute_citation" ] }, { "jurisdiction": "Illinois \u2014 Chicago", "interest_required": "Yes", "rate_or_mechanism": "0.01%", "condition": "Interest is owed on a security deposit or prepaid rent held more than six months", "statute_citation": "Municipal Code of Chicago \u00a7\u00a7 5-12-081, 5-12-082", "id": "illinois-chicago", "url": "https://referencesource.org/security-deposit-interest-requirements-by-state/illinois-chicago/", "source": "https://www.chicago.gov/city/en/depts/doh/provdrs/landlords/svcs/security-deposit-interest-rates.html", "source_quote": "Chapter 5-12 of the Municipal Code of Chicago hereby gives notice pursuant to Sections 5-12-081 and 5-12-082 of the Municipal Code of Chicago that the rate of interest on security deposits under rental agreements governed for the period from January 1, 2026 through December 31, 2026 shall be: 0.01%", "verified_fields": [ "rate_or_mechanism" ], "derived_fields": [ "condition", "interest_required", "jurisdiction", "statute_citation" ] }, { "jurisdiction": "Maryland", "interest_required": "Yes", "rate_or_mechanism": "simple interest which has accrued at the daily U.S. Treasury yield curve rate for 1 year, as of the first business day of each year, or 1.5% a year, whichever is greater", "condition": "Only on a deposit of $50 or more, and only once the landlord has held it for at least 6 months", "statute_citation": "Md. Code, Real Prop. \u00a7 8-203(e)", "id": "maryland", "url": "https://referencesource.org/security-deposit-interest-requirements-by-state/maryland/", "source": "https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=grp§ion=8-203&enactments=false", "source_quote": "Within 45 days after the end of the tenancy, the landlord shall return the security deposit to the tenant together with simple interest which has accrued at the daily U.S. Treasury yield curve rate for 1 year, as of the first business day of each year, or 1.5% a year, whichever is greater, less any damages rightfully withheld.", "verified_fields": [ "rate_or_mechanism" ], "derived_fields": [ "condition", "interest_required", "jurisdiction", "statute_citation" ] }, { "jurisdiction": "Massachusetts", "interest_required": "Yes", "rate_or_mechanism": "interest at the rate of five per cent per year, or other such lesser amount of interest as has been received from the bank where the deposit has been held", "condition": "Only once the landlord has held the deposit for a year or longer from the start of the tenancy", "statute_citation": "Mass. Gen. Laws ch. 186, \u00a7 15B(3)(b)", "id": "massachusetts", "url": "https://referencesource.org/security-deposit-interest-requirements-by-state/massachusetts/", "source": "https://malegislature.gov/Laws/GeneralLaws/PartII/TitleI/Chapter186/Section15B", "source_quote": "A lessor of residential real property who holds a security deposit pursuant to this section for a period of one year or longer from the commencement of the term of the tenancy shall, beginning with the first day of the tenancy, pay interest at the rate of five per cent per year, or other such lesser amount of interest as has been received from the bank where the deposit has been held payable to the tenant at the end of each year of the tenancy.", "verified_fields": [ "rate_or_mechanism" ], "derived_fields": [ "condition", "interest_required", "jurisdiction", "statute_citation" ] }, { "jurisdiction": "Minnesota", "interest_required": "Yes", "rate_or_mechanism": "simple noncompounded interest at the rate of one percent per annum", "condition": "No holding-period or minimum-deposit threshold; any interest amount less than $1 is excluded", "statute_citation": "Minn. Stat. \u00a7 504B.178, subd. 2", "id": "minnesota", "url": "https://referencesource.org/security-deposit-interest-requirements-by-state/minnesota/", "source": "https://www.revisor.mn.gov/statutes/cite/504B.178", "source_quote": "shall bear simple noncompounded interest at the rate of one percent per annum, computed from the first day of the next month following the full payment of the deposit", "verified_fields": [ "rate_or_mechanism" ], "derived_fields": [ "condition", "interest_required", "jurisdiction", "statute_citation" ] }, { "jurisdiction": "New Hampshire", "interest_required": "Yes", "rate_or_mechanism": "a rate equal to the interest rate paid on regular savings accounts in the New Hampshire bank, savings and loan association, or credit union in which it is deposited", "condition": "Only once the landlord has held the deposit for a period of one year or longer", "statute_citation": "N.H. Rev. Stat. Ann. \u00a7 540-A:6, IV(a)", "id": "new-hampshire", "url": "https://referencesource.org/security-deposit-interest-requirements-by-state/new-hampshire/", "source": "https://www.gencourt.state.nh.us/rsa/html/LV/540-A/540-A-6.htm", "source_quote": "A landlord who holds a security deposit for a period of one year or longer shall pay to the tenant interest on the deposit at a rate equal to the interest rate paid on regular savings accounts in the New Hampshire bank, savings and loan association, or credit union in which it is deposited, commencing from the date the landlord receives the deposit or from September 13, 1977, whichever is later.", "verified_fields": [ "rate_or_mechanism" ], "derived_fields": [ "condition", "interest_required", "jurisdiction", "statute_citation" ] }, { "jurisdiction": "New York", "interest_required": "Yes", "rate_or_mechanism": "a rate which shall be the prevailing rate earned by other such deposits made with banking organizations in such area", "condition": "Only where the rented property contains six or more family dwelling units", "statute_citation": "N.Y. Gen. Oblig. Law \u00a7 7-103(2), (2-a)", "id": "new-york", "url": "https://referencesource.org/security-deposit-interest-requirements-by-state/new-york/", "source": "https://newyork.public.law/laws/n.y._general_obligations_law_section_7-103", "source_quote": "If the person depositing such security money in a banking organization shall deposit same in an interest bearing account, he shall be entitled to receive, as administration expenses, a sum equivalent to one per cent per annum upon the security money so deposited, which shall be in lieu of all other administrative and custodial expenses. The balance of the interest paid by the banking organization shall be the money of the person making the deposit or advance and shall either be held in trust by the person with whom such deposit or advance shall be made, until repaid or applied for the use or rental of the leased premises, or annually paid to the person making the deposit of security money. 2-a. Whenever the money so deposited or advanced is for the rental of property containing six or more family dwelling units, the person receiving such money shall, subject to the provisions of this section, deposit it in an interest bearing account in a banking organization within the state which account shall earn interest at a rate which shall be the prevailing rate earned by other such deposits made with banking organizations in such area.", "verified_fields": [ "rate_or_mechanism" ], "derived_fields": [ "condition", "interest_required", "jurisdiction", "statute_citation" ] }, { "jurisdiction": "North Dakota", "interest_required": "Yes", "rate_or_mechanism": "a federally insured interest-bearing savings or checking account for the benefit of the tenant", "condition": "Not owed where the period of occupancy was less than nine months", "statute_citation": "N.D. Cent. Code \u00a7 47-16-07.1(1), (3)", "id": "north-dakota", "url": "https://referencesource.org/security-deposit-interest-requirements-by-state/north-dakota/", "source": "https://www.ndlegis.gov/cencode/t47c16.pdf", "source_quote": "The lessor of real property or a dwelling who requires money as a security deposit, however denominated, shall deposit the money in a federally insured interest-bearing savings or checking account for the benefit of the tenant. The security deposit and any interest accruing on the deposit must be paid to the lessee upon termination of a lease, subject to the conditions of subsection 2.", "verified_fields": [ "rate_or_mechanism" ], "derived_fields": [ "condition", "interest_required", "jurisdiction", "statute_citation" ] }, { "jurisdiction": "Ohio", "interest_required": "Yes", "rate_or_mechanism": "interest on the excess at the rate of five per cent per annum", "condition": "Only on the part of the deposit above $50 or one month's periodic rent, whichever is greater, and only if the tenant remains in possession for six months or more", "statute_citation": "Ohio Rev. Code \u00a7 5321.16(A)", "id": "ohio", "url": "https://referencesource.org/security-deposit-interest-requirements-by-state/ohio/", "source": "https://codes.ohio.gov/ohio-revised-code/section-5321.16", "source_quote": "Any security deposit in excess of fifty dollars or one month's periodic rent, whichever is greater, shall bear interest on the excess at the rate of five per cent per annum if the tenant remains in possession of the premises for six months or more, and shall be computed and paid annually by the landlord to the tenant.", "verified_fields": [ "rate_or_mechanism" ], "derived_fields": [ "condition", "interest_required", "jurisdiction", "statute_citation" ] }, { "jurisdiction": "Pennsylvania", "interest_required": "Yes", "rate_or_mechanism": "The balance of the interest paid shall be the money of the tenant making the deposit", "condition": "Applies only after the second anniversary of the deposit of escrow funds", "statute_citation": "68 P.S. \u00a7 250.511b (Landlord and Tenant Act of 1951, \u00a7 511.2)", "id": "pennsylvania", "url": "https://referencesource.org/security-deposit-interest-requirements-by-state/pennsylvania/", "source": "https://www.legis.state.pa.us/WU01/LI/LI/US/HTM/1951/0/0020..HTM", "source_quote": "Whenever any money is required to be deposited in an interest-bearing escrow savings account, in accordance with section 511.1, then the lessor shall be entitled to receive as administrative expenses, a sum equivalent to one per cent per annum upon the security money so deposited, which shall be in lieu of all other administrative and custodial expenses. The balance of the interest paid shall be the money of the tenant making the deposit and will be paid to said tenant annually upon the anniversary date of the commencement of his lease.", "verified_fields": [ "rate_or_mechanism" ], "derived_fields": [ "condition", "interest_required", "jurisdiction", "statute_citation" ] } ] }