Security deposit interest in Michigan
Verified against Mich. Comp. Laws § 554.604 and agency sources on 2026-07-04. Not legal advice.
No interest required
Michigan does not require landlords to pay interest on security deposits.
- Statute: Mich. Comp. Laws § 554.604 · primary source
Deposit must be held in a regulated financial institution or secured by a bond, but no interest is owed to the tenant.
Security deposit interest calculator
Interest owed (simple):
Holding deposits compliantly is the hard part. Azibo gives landlords free banking built for security deposits. Try Azibo →
Frequently asked questions
Do landlords have to pay interest on security deposits in Michigan?
No — Michigan law (Mich. Comp. Laws § 554.604) does not require deposit interest.
Anything else Michigan landlords should know about deposit interest?
Deposit must be held in a regulated financial institution or secured by a bond, but no interest is owed to the tenant.
Deposit interest in other states
All states · Alabama · Alaska · Arizona · Arkansas · California · Colorado · Connecticut · Delaware · District of Columbia · Florida
Related: rent increase rules in Michigan · prorated rent calculator