Security deposit interest by state
Verified against statutes and state agency pages on 2026-07-04. Not legal advice.
Six jurisdictions require deposit interest outright, roughly ten more require it conditionally, and the rest don't require it at all — though cities like Chicago, San Francisco, and Boise add their own rules. Rates for 2026 range from Chicago's 0.01% to Maryland's 3.47%.
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Interest required
| State | Current rate | Rule | Statute |
|---|---|---|---|
| Connecticut | 0.49% (2026) | Rate set annually by the state Banking Commissioner as the 'deposit index' (average of national savings/money-market rates from FDIC National Rates and Rate Caps, published late November); deposit must be held in escrow at a Connecticut financial institution | Conn. Gen. Stat. § 47a-21(i); § 36a-26 (deposit index) |
| District of Columbia | floats | Not less than the statement savings rate prevailing on January 1 and July 1 (each 6-month period) at the DC financial institution where the escrow account is held; if the landlord fails to use an interest-bearing account, the higher DC judgment rate of interest applies; landlord may keep up to 30% of interest earned above the statement savings rate | D.C. Code § 42-3502.17; 14 DCMR §§ 308-311 |
| Maryland | 3.47% (2026) | Simple interest at the greater of 1.5% per year or the 1-year U.S. Treasury constant-maturity (yield curve) rate as of the first business day of each calendar year; accrues monthly, not compounded; landlord may rely on the MD DHCD rate list/calculator as a safe harbor | Md. Code, Real Prop. § 8-203(e) |
| Massachusetts | 5% | 5% per year or the actual interest received from the bank where the deposit is held, whichever is less; deposit must be in a separate interest-bearing Massachusetts account (same rule applies to last month's rent paid in advance, from day one) | Mass. Gen. Laws ch. 186, § 15B(3)(b) |
| Minnesota | 1% | Simple noncompounded interest at 1% per annum, computed from the first day of the month after full payment of the deposit; rate fixed by statute (unchanged since Aug 1, 2003) | Minn. Stat. § 504B.178, subd. 2 |
| New Jersey | floats | Actual interest or earnings: deposit must be invested in an insured NJ money market fund or held in an NJ bank account bearing a variable market-linked rate (landlords with fewer than 10 rental units may use an ordinary insured interest-bearing account); all interest/earnings belong to the tenant | N.J. Stat. Ann. § 46:8-19 |
Conditionally required
| State | When it applies | Statute |
|---|---|---|
| Florida | only if the landlord elects to hold the deposit in an interest-bearing Florida account (a separate non-interest-bearing account is also permitted, in which case no interest is owed); landlords posting a surety bond must pay 5% simple | Fla. Stat. § 83.49(1)-(2) |
| Illinois | landlords of 25 or more residential units (in one building or a complex on contiguous parcels), deposit held more than 6 months | 765 ILCS 715/1 (Security Deposit Interest Act) |
| Iowa | tenant is entitled only to interest earned after the first 5 years of tenancy, and only if the landlord chose to hold the deposit in an interest-bearing account (an interest-bearing account is permitted, not required) | Iowa Code § 562A.12(2) |
| New Hampshire | deposit held for 1 year or longer; ch. 540-A deposit rules generally exempt small owner-occupied properties, except where the tenant is 60 or older | N.H. Rev. Stat. Ann. § 540-A:6, IV |
| New Mexico | annual (1-year or longer) rental agreement where the deposit exceeds one month's rent | N.M. Stat. Ann. § 47-8-18(A) |
| New York | property containing six or more family dwelling units (also required for rent-stabilized units) | N.Y. Gen. Oblig. Law § 7-103(2-a) |
| North Dakota | period of occupancy of 9 months or longer (no interest owed if occupancy was under 9 months) | N.D. Cent. Code § 47-16-07.1 |
| Ohio | deposit exceeds the greater of $50 or one month's rent AND tenant remains in possession 6 months or more; interest accrues only on the excess portion | Ohio Rev. Code § 5321.16(A) |
| Pennsylvania | deposit held more than 2 years - interest obligation begins on the second anniversary (i.e., from the third year of tenancy); deposits over $100 must be escrowed | 68 Pa. Stat. §§ 250.511a-250.511b |
All states
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State pages are being rolled out weekly. States without a page yet are summarized in the tables above.