Security deposit interest in Vermont
Verified against 9 V.S.A. § 4461 and agency sources on 2026-07-04. Not legal advice.
Vermont does not require landlords to pay interest on security deposits.
- Statute: 9 V.S.A. § 4461 · primary source
State law expressly authorizes municipal deposit ordinances (9 V.S.A. § 4461(g)); Burlington is the main one. Barre also has local deposit rules.
City ordinances in Vermont
- Burlington (Code of Ordinances ch. 18, § 18-120): deposit must be held in an interest-bearing account at a rate at least equivalent to a current Vermont bank passbook savings rate; interest paid to tenant at move-out (or applied to amounts owed); deposit capped at one month's rent
Security deposit interest calculator
Frequently asked questions
Do landlords have to pay interest on security deposits in Vermont?
No — Vermont law (9 V.S.A. § 4461) does not require deposit interest. But note the local ordinances below.
Anything else Vermont landlords should know about deposit interest?
State law expressly authorizes municipal deposit ordinances (9 V.S.A. § 4461(g)); Burlington is the main one. Barre also has local deposit rules.
Deposit interest in other states
All states · Alabama · Alaska · Arizona · Arkansas · California · Colorado · Connecticut · Delaware · District of Columbia · Florida
Related: rent increase rules in Vermont · prorated rent calculator