Security deposit interest in Minnesota
Verified against Minn. Stat. § 504B.178, subd. 2 and agency sources on 2026-07-04. Not legal advice.
Minnesota requires landlords to pay interest on security deposits.
- Rate: 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)
- Current rate: 1%
- Paid: at termination with the deposit (within 3 weeks); interest under $1 total is excused
- Statute: Minn. Stat. § 504B.178, subd. 2 · primary source
No minimum deposit size or holding period - all deposits accrue 1%.
Security deposit interest calculator
Frequently asked questions
Do landlords have to pay interest on security deposits in Minnesota?
Yes. 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).
What is the Minnesota security deposit interest rate?
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)
When must deposit interest be paid in Minnesota?
At termination with the deposit (within 3 weeks); interest under $1 total is excused.
Anything else Minnesota landlords should know about deposit interest?
No minimum deposit size or holding period - all deposits accrue 1%.
Deposit interest in other states
All states · Alabama · Alaska · Arizona · Arkansas · California · Colorado · Connecticut · Delaware · District of Columbia · Florida
Related: rent increase rules in Minnesota · prorated rent calculator