# Minnesota — Security deposit interest requirements by US state — which states make a landlord pay interest on a held deposit, and at what rate, quoted from the statute

For Minnesota, interest required is Yes; rate or how it's set is simple noncompounded interest at the rate of one percent per annum; condition that triggers the duty is No holding-period or minimum-deposit threshold; any interest amount less than $1 is excluded; citation is Minn. Stat. § 504B.178, subd. 2, recorded from its source on 2026-09-02.

- **Jurisdiction:** Minnesota _(our reading, not quoted from the source)_
- **Interest required:** Yes _(our reading, not quoted from the source)_
- **Rate or how it's set:** simple noncompounded interest at the rate of one percent per annum _(verified: appears in the quote below)_
- **Condition that triggers the duty:** No holding-period or minimum-deposit threshold; any interest amount less than $1 is excluded _(our reading, not quoted from the source)_
- **Citation:** Minn. Stat. § 504B.178, subd. 2 _(our reading, not quoted from the source)_

## What the source says

> 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

## Where each value comes from

This source states these in separate places, so each value is shown with the passage that states it.

### Condition that triggers the duty

> Any interest amount less than $1 shall be excluded from the provisions of this section.

## Source

- https://www.revisor.mn.gov/statutes/cite/504B.178

Last verified: 2026-09-02. Review by: 2027-03-01.
Part of [Security deposit interest requirements by US state — which states make a landlord pay interest on a held deposit, and at what rate, quoted from the statute](https://referencesource.org/security-deposit-interest-requirements-by-state/).