Security Deposit Interest: Must Landlords Pay It? (State-by-State)

Many leases state that the security deposit “will not bear interest” or that the landlord keeps any interest it earns. Some states require landlords to pay tenants interest on deposits or hold them in a separate account, while many others say nothing about interest at all. Whether this clause is just a restatement of the default or an attempt to skip a legal duty depends on your state, so check the table below.

What it looks like in a lease

“Security deposit shall not bear interest and Landlord may commingle it with other funds.”
“Any interest earned on the deposit belongs to Landlord as an administrative fee.”
“Tenant waives any right to interest on the security deposit.”

Why it's a red flag

In some states a landlord who must pay interest cannot waive that duty through a lease clause.
On a large deposit held for several years, the interest you may be owed can add up.
The same lease that ignores interest may also exceed the deposit limit, so check both columns below.

What to ask your landlord

Where is my deposit held, and does my state require interest or a separate account?
If interest is owed, how and when will it be paid or credited?
Can the clause be changed to say interest is paid as required by state law?

State-by-state rules

“Not verified yet” means we have not confirmed this point in the statute; it does not mean no rule exists. Each row links to the statute. Data as of 2026-10-22.

Alaska
Interest on deposit
No interest requirement in § 34.03.070. The landlord must promptly deposit the money, where practicable, in a trust account, and may not commingle it with other funds (§ 34.03.070(c)).
Maximum deposit
Two months' periodic rent for prepaid rent and security deposit combined; the cap does not apply to units where the rent exceeds $2,000 a month. A landlord may take an additional pet deposit of up to one month's rent for a tenant with a pet that is not a service animal; it must be accounted for separately and used only for pet-related damage (§ 34.03.070(a), (h)).
Source: AS 34.03.070
Arizona
Interest on deposit
Not verified yet
Maximum deposit
1.5 months' rent (all security, however named, including prepaid rent; a tenant may voluntarily prepay more rent). The purpose of any nonrefundable fee must be stated in writing; any fee not designated nonrefundable is refundable.
Source: A.R.S. § 33-1321
California
Interest on deposit
Not verified yet
Maximum deposit
1 month's rent for most landlords (since July 1, 2024, AB 12); 2 months for small landlords (a natural person, or an LLC whose members are all natural persons, owning at most 2 residential rental properties with at most 4 units total). The small-landlord exception does not apply to service-member tenants. Deposits can never be 'non-refundable'.
Source: Cal. Civ. Code § 1950.5
Colorado
Interest on deposit
Not verified yet
Maximum deposit
2 months' rent (since Aug 7, 2023).
Source: C.R.S. §§ 38-12-102.5, 38-12-103 (as amended by HB25-1249, eff. Jan 1, 2026)
Connecticut
Interest on deposit
Yes. The landlord must pay interest each year at a rate not less than the 'deposit index' set under section 36a-26 (never waivable by lease, 47a-4(a)(4)). Interest is paid to the tenant or credited toward rent on the tenancy anniversary, and if the tenancy ends or the deposit is returned earlier, within 21 days after that. No interest is owed for any month in which the tenant was more than 10 days late with rent, unless the landlord imposed a late charge.
Maximum deposit
Two months' rent for a tenant under 62; one month's rent for a tenant 62 or older (a landlord who took more than one month's rent from a tenant who later turns 62 must return the excess on request). Advance payment of the first month's rent and a key or special-equipment deposit are not 'security deposit'. The landlord must immediately put the deposit in an escrow account at a Connecticut financial institution and, within 30 days of receiving it, tell the tenant in writing the amount and the name and address of the institution. A landlord may not charge a move-in or move-out fee (47a-4d(b)).
Source: Conn. Gen. Stat. 47a-21(a), (b), (d), (h), (i); 47a-4(a)(4); 47a-4d(b)
Delaware
Interest on deposit
No interest requirement in § 5514.
Maximum deposit
1 month's rent when the lease is for 1 year or more, and for month-to-month tenancies once they have lasted 1 year (any excess must then be credited back). These limits do not apply to furnished units. A separate pet deposit is capped at 1 month's rent, and none may be charged for a certified, trained support animal of a disabled resident. The deposit must sit in a designated escrow account at a federally insured bank with an office in Delaware, and the landlord must tell the tenant where it is.
Source: Del. Code tit. 25, § 5514(a)-(g), (i)
District of Columbia
Interest on deposit
Yes: at no less than the statement savings rate of the bank holding the escrow account (reset each Jan 1 and Jul 1), payable at the end of tenancies of 12 months or more.
Maximum deposit
One full month's rent (the first full month's rent charged), and it may be charged only once. Must be held in an interest-bearing escrow account at a D.C. financial institution, and the lease or receipt must state the terms of the deposit.
Source: 14 DCMR §§ 308.2-308.3, 309.1-309.2, 311.1-311.2; D.C. Code § 42-3502.17(c)
Florida
Interest on deposit
Landlord must tell the tenant in writing within 30 days how and where the deposit is held; if it is held in an interest-bearing account, the tenant is owed at least 75% of the account's annualized average rate or 5% per year simple interest, whichever the landlord elects. Deductions require written notice of claim, sent by certified mail within 30 days after the lease ends.
Maximum deposit
No statutory cap.
Source: Fla. Stat. § 83.49
Georgia
Interest on deposit
Not verified yet
Maximum deposit
2 months' rent (leases entered/renewed on or after July 1, 2024).
Source: O.C.G.A. §§ 44-7-30.1, 44-7-34
Illinois
Interest on deposit
Landlords with 25+ units in one building or contiguous complex must pay interest on deposits held more than 6 months (765 ILCS 715). Chicago (RLTO) requires interest on all deposits.
Maximum deposit
No statewide cap.
Source: 765 ILCS 710/1; 765 ILCS 715
Iowa
Interest on deposit
No for the first five years of a tenancy: interest earned in that period belongs to the landlord.
Maximum deposit
2 months' rent. The deposit must be held in a federally insured bank, savings and loan or credit union account, not mixed with the landlord's own money.
Source: Iowa Code § 562A.12(1)-(4)
Kansas
Interest on deposit
Not verified yet
Maximum deposit
1 month's rent for an unfurnished unit; 1.5 months' rent if the tenant uses the landlord's furniture; plus up to half a month's rent extra if pets are allowed.
Source: K.S.A. 58-2550(a)-(c)
Kentucky
Interest on deposit
Not verified yet
Maximum deposit
No statewide cap. Under the URLTA (where adopted): deposit must be kept in a separate account used only for deposits, and the landlord must give signed move-in and move-out damage lists, or they cannot keep any of the deposit.
Source: KRS 383.580
Louisiana
Interest on deposit
No
Maximum deposit
No statutory cap. The landlord may keep only what is reasonably necessary to remedy the tenant's default or unreasonable wear to the premises (R.S. 9:3251(A)).
Source: La. R.S. 9:3251, 9:3252, 9:3254
Maine
Interest on deposit
No interest requirement in ch. 710-A.
Maximum deposit
2 months' rent. At move-in the landlord may not require more than the first full month's rent, the security deposit and any properly disclosed mandatory recurring fee (§ 6022-A). The deposit may not be commingled with the landlord's assets: it must be held in a bank or other financial institution account beyond the reach of the landlord's creditors, and on request the landlord must tell the tenant the institution and account number (§ 6038).
Source: 14 M.R.S. §§ 6032, 6033, 6034, 6038, 6022-A
Maryland
Interest on deposit
Yes: simple interest at the greater of the 1-year U.S. Treasury yield rate or 1.5% per year, only on deposits of $50 or more held at least 6 months.
Maximum deposit
1 month's rent per unit (since Oct 1, 2024); up to 2 months only if the tenant qualified for utility assistance through the Department of Human Services, the lease requires paying utilities directly to the landlord, and both agree in writing. Overcharge: tenant may recover up to 3x the excess plus attorney fees.
Source: Md. Code, Real Prop. § 8-203(b), (e), (g)
Massachusetts
Interest on deposit
Yes. If the deposit is held a year or longer, 5% per year or the lesser amount the bank actually paid, paid to the tenant each year with a statement naming the bank, account number and amount (any accrued interest is due within 30 days if the tenancy ends before the anniversary). Interest on prepaid last month's rent is also owed at 5% or the lesser bank rate.
Maximum deposit
One month's rent. At or before the start of the tenancy the landlord (or its agent) may require only: rent for the first full month, rent for the last full month at the same rate, a security deposit equal to the first month's rent, and the purchase and installation cost of a key and lock. After the tenancy begins the landlord may not demand rent in advance beyond the current month or a larger deposit. The deposit stays the tenant's property: it must be held in a separate interest-bearing account in a bank located in Massachusetts, out of reach of the landlord's creditors, and the tenant must get a receipt within 30 days naming the bank, its location and the account number (failure entitles the tenant to immediate return). The landlord must give a signed receipt when taking the deposit and, within 10 days after the tenancy starts (or on receipt of the deposit, if later), a separate signed written statement of the unit's condition with a prescribed notice; the tenant has 15 days to return it with a list of any other damage. The landlord must also keep records of deposits for two years.
Source: M.G.L. c. 186, § 15B(1)(b), (1)(d), (2), (3), (4), (5)
Michigan
Interest on deposit
No. The Michigan act does not require interest on the deposit.
Maximum deposit
1.5 months' rent (554.602). The deposit must be kept in a regulated financial institution, or the landlord must instead post a cash or surety bond with the Secretary of State covering all deposits (554.604). Before it may require a deposit, the landlord must give the tenant a written notice, within 14 days after the tenant takes possession, of the landlord's name and address, the name and address of the financial institution or surety, and the tenant's duty to give a forwarding address within 4 days after moving out, with that warning in bold 12-point type (554.603). The landlord must give the tenant two blank copies of a move-in inventory checklist and a termination checklist is required at move-out; the tenant has 7 days after getting possession to return the move-in checklist (554.608). The deposit may be used only for actual damage beyond normal use, unpaid rent, rent due for early termination, and unpaid tenant utility bills (554.607).
Source: MCL 554.602, 554.603, 554.604, 554.607, 554.608, 554.609, 554.610, 554.611, 554.612, 554.613
Minnesota
Interest on deposit
Yes: 1% simple, noncompounded interest per year (amounts under $1 excluded).
Maximum deposit
No statutory cap on the amount.
Source: Minn. Stat. § 504B.178, subds. 2-3
Missouri
Interest on deposit
No
Maximum deposit
Two months' rent. Must be held in a federally insured bank, credit union or depository institution; interest earned belongs to the landlord. Pet deposits are not counted as 'security deposit'.
Source: RSMo § 535.300
Montana
Interest on deposit
No interest requirement in chapter 70-25.
Maximum deposit
No statutory cap found in chapter 70-25. Any deposit the lease requires counts as a security deposit, and a fee or charge for cleaning and damages, however labelled, is presumed to be one (§ 70-25-101(4)). Any lease term contrary to chapter 70-25, and any tenant waiver of it, is invalid (§ 70-25-103).
Source: MCA §§ 70-25-101, 70-25-103, 70-25-201, 70-25-202, 70-25-203, 70-25-204
Nevada
Interest on deposit
Not verified yet
Maximum deposit
3 months' periodic rent total (deposit, surety bond and last month's rent combined).
Source: NRS 118A.242
New Jersey
Interest on deposit
Yes. The interest belongs to the tenant and is paid each year in cash or credited toward rent on the lease renewal or anniversary (or each January 31 after written notice). Within 30 days of receiving the deposit (and on moving it, on each annual interest payment and on sale of the property) the landlord must tell the tenant in writing the bank's name and address, account type, interest rate and amount. If the landlord fails to invest the deposit, give the notice or pay interest, the tenant may give written notice and apply the deposit plus 7% annual interest to rent, and the landlord can't demand a new deposit; for a missed annual payment or notice the landlord first gets 30 days to fix it (46:8-19(c)).
Maximum deposit
1.5 times one month's rent. If the landlord collects more security later, the extra collected in any year may not exceed 10% of the current deposit (46:8-21.2). The deposit stays the tenant's money, held in trust and not mixed with the landlord's own funds; it must sit in an interest-bearing account at a New Jersey bank or savings institution (landlords with 10+ units: an insured money-market fund or variable-rate account) (46:8-19(a), (b)).
Source: N.J.S.A. 46:8-19, 46:8-21.1, 46:8-21.2, 46:8-24, 46:8-26
New York
Interest on deposit
Buildings with 6+ units: interest-bearing account at the prevailing rate; landlord may keep 1% a year as an administrative fee (Gen. Oblig. Law § 7-103). Smaller buildings: held in trust, no interest required.
Maximum deposit
1 month's rent.
Source: N.Y. Gen. Oblig. Law §§ 7-103, 7-108
North Carolina
Interest on deposit
Not verified yet
Maximum deposit
2 weeks' rent (week-to-week), 1.5 months (month-to-month), 2 months (longer terms).
Source: N.C.G.S. §§ 42-51, 42-52
North Dakota
Interest on deposit
Yes. The landlord must hold the deposit in a federally insured interest-bearing savings or checking account for the tenant's benefit, and pay the deposit and accrued interest on termination of the lease, less permitted deductions. No interest is owed if the period of occupancy was less than nine months (§ 47-16-07.1(1), (3)).
Maximum deposit
One month's rent. Exceptions: up to two months' rent from an individual convicted of a felony offense as an incentive to rent to them, or from an individual who has had a judgment entered against them for violating a previous rental agreement (§ 47-16-07.1(1)). A separate pet security deposit (not for service or companion animals required as a disability accommodation) may be charged, up to the greater of $2,500 or two months' rent (§ 47-16-07.1(2)).
Source: N.D.C.C. § 47-16-07.1
Ohio
Interest on deposit
If the deposit exceeds $50 or one month's rent (whichever is greater), the excess earns 5% yearly interest when the tenant stays 6+ months.
Maximum deposit
No statutory cap.
Source: Ohio Rev. Code § 5321.16
Oregon
Interest on deposit
Not verified yet
Maximum deposit
No statutory cap in ORS 90.300; a landlord cannot require a new or increased deposit in the first year of tenancy (except for an agreed change such as adding a pet), and must allow at least 3 months to pay one after that.
Source: ORS 90.300(12)-(13)
Pennsylvania
Interest on deposit
Deposits over $100 must be held in a separate escrow account; from the third year of the lease it must earn interest, paid to the tenant yearly minus a 1% landlord fee (68 P.S. § 250.511b). Deposits of $100 or less: no escrow or interest.
Maximum deposit
2 months' rent in the first year; 1 month's rent from the second year on.
Source: 68 P.S. §§ 250.511a, 250.511b, 250.512
South Carolina
Interest on deposit
Not verified yet
Maximum deposit
No cap on the amount in the Residential Landlord and Tenant Act.
Source: S.C. Code Ann. § 27-40-410
South Dakota
Interest on deposit
No interest requirement in §§ 43-32-6.1 or 43-32-24.
Maximum deposit
1 month's rent. A larger deposit is allowed only by agreement of landlord and tenant where special conditions pose a danger to maintenance of the premises. Any money deposited to secure the rental agreement counts as a security deposit, however it is labelled (§ 43-32-6.1).
Source: SDCL §§ 43-32-6.1, 43-32-24
Tennessee
Interest on deposit
Not verified yet
Maximum deposit
No statutory cap (Tenn. Code Ann. § 66-28-301 sets none).
Source: Tenn. Code Ann. § 66-28-301
Texas
Interest on deposit
Not verified yet
Maximum deposit
No statutory cap.
Source: Tex. Prop. Code §§ 92.103, 92.104, 92.107
Utah
Interest on deposit
No
Maximum deposit
No statutory cap. Any non-refundable portion of a deposit must be stated in writing to the renter when the deposit is taken (57-17-2).
Source: Utah Code §§ 57-17-2, 57-17-3, 57-17-5
Virginia
Interest on deposit
Not verified yet
Maximum deposit
2 months' periodic rent (security deposit however named). Security deposit plus damage-insurance and renter's-insurance premiums paid before the tenancy starts may not exceed 2 months' rent in total.
Source: Va. Code §§ 55.1-1226(A), 55.1-1208(A)(7)
Washington
Interest on deposit
Not verified yet
Maximum deposit
No statewide cap found. A deposit may be collected only with a written lease and a signed, dated move-in checklist describing the unit's condition; without the checklist the landlord is liable for the whole deposit. Deposits go in a Washington trust account and the tenant gets a receipt. On written request, the tenant may pay deposits, nonrefundable fees and last month's rent in installments (2 or 3 months) unless they total no more than 25% of the first month's rent. A fee is refundable unless the written lease clearly calls it nonrefundable.
Source: RCW 59.18.260, 59.18.270, 59.18.280, 59.18.285, 59.18.610
West Virginia
Interest on deposit
Not verified yet
Maximum deposit
Not verified yet
Source: W. Va. Code §§ 37-6A-1, 37-6A-2, 37-6A-3, 37-6A-5
Wisconsin
Interest on deposit
No interest requirement in Wis. Stat. 704.28 or ATCP 134.06.
Maximum deposit
No statutory cap on the deposit amount in Wis. Stat. 704.28 or ATCP 134.06. Any rent prepayment above one month's prepaid rent counts as a 'security deposit' and must be returned under the same rules (ATCP 134.06(2) note). Before accepting a deposit the landlord must tell the tenant in writing they may inspect the unit and report pre-existing damage, or request a list of damage charged to the previous tenant, by a deadline at least 7 days after the tenancy starts (ATCP 134.06(1)). Wisconsin law has no deposit-interest or separate-account rule in these sections.
Source: Wis. Stat. 704.28; Wis. Admin. Code ATCP 134.06
Wyoming
Interest on deposit
No. The balance of the deposit and prepaid rent is delivered or mailed "without interest" (§ 1-21-1208(a)).
Maximum deposit
No statutory cap. A rental agreement must state whether any portion of the deposit is nonrefundable, and written notice of that fact must also be given to the renter when the deposit is taken (§ 1-21-1207).
Source: W.S. 1-21-1207, 1-21-1208

State	Interest on deposit	Maximum deposit	Source
Alaska	No interest requirement in § 34.03.070. The landlord must promptly deposit the money, where practicable, in a trust account, and may not commingle it with other funds (§ 34.03.070(c)).	Two months' periodic rent for prepaid rent and security deposit combined; the cap does not apply to units where the rent exceeds $2,000 a month. A landlord may take an additional pet deposit of up to one month's rent for a tenant with a pet that is not a service animal; it must be accounted for separately and used only for pet-related damage (§ 34.03.070(a), (h)).	AS 34.03.070
Arizona	Not verified yet	1.5 months' rent (all security, however named, including prepaid rent; a tenant may voluntarily prepay more rent). The purpose of any nonrefundable fee must be stated in writing; any fee not designated nonrefundable is refundable.	A.R.S. § 33-1321
California	Not verified yet	1 month's rent for most landlords (since July 1, 2024, AB 12); 2 months for small landlords (a natural person, or an LLC whose members are all natural persons, owning at most 2 residential rental properties with at most 4 units total). The small-landlord exception does not apply to service-member tenants. Deposits can never be 'non-refundable'.	Cal. Civ. Code § 1950.5
Colorado	Not verified yet	2 months' rent (since Aug 7, 2023).	C.R.S. §§ 38-12-102.5, 38-12-103 (as amended by HB25-1249, eff. Jan 1, 2026)
Connecticut	Yes. The landlord must pay interest each year at a rate not less than the 'deposit index' set under section 36a-26 (never waivable by lease, 47a-4(a)(4)). Interest is paid to the tenant or credited toward rent on the tenancy anniversary, and if the tenancy ends or the deposit is returned earlier, within 21 days after that. No interest is owed for any month in which the tenant was more than 10 days late with rent, unless the landlord imposed a late charge.	Two months' rent for a tenant under 62; one month's rent for a tenant 62 or older (a landlord who took more than one month's rent from a tenant who later turns 62 must return the excess on request). Advance payment of the first month's rent and a key or special-equipment deposit are not 'security deposit'. The landlord must immediately put the deposit in an escrow account at a Connecticut financial institution and, within 30 days of receiving it, tell the tenant in writing the amount and the name and address of the institution. A landlord may not charge a move-in or move-out fee (47a-4d(b)).	Conn. Gen. Stat. 47a-21(a), (b), (d), (h), (i); 47a-4(a)(4); 47a-4d(b)
Delaware	No interest requirement in § 5514.	1 month's rent when the lease is for 1 year or more, and for month-to-month tenancies once they have lasted 1 year (any excess must then be credited back). These limits do not apply to furnished units. A separate pet deposit is capped at 1 month's rent, and none may be charged for a certified, trained support animal of a disabled resident. The deposit must sit in a designated escrow account at a federally insured bank with an office in Delaware, and the landlord must tell the tenant where it is.	Del. Code tit. 25, § 5514(a)-(g), (i)
District of Columbia	Yes: at no less than the statement savings rate of the bank holding the escrow account (reset each Jan 1 and Jul 1), payable at the end of tenancies of 12 months or more.	One full month's rent (the first full month's rent charged), and it may be charged only once. Must be held in an interest-bearing escrow account at a D.C. financial institution, and the lease or receipt must state the terms of the deposit.	14 DCMR §§ 308.2-308.3, 309.1-309.2, 311.1-311.2; D.C. Code § 42-3502.17(c)
Florida	Landlord must tell the tenant in writing within 30 days how and where the deposit is held; if it is held in an interest-bearing account, the tenant is owed at least 75% of the account's annualized average rate or 5% per year simple interest, whichever the landlord elects. Deductions require written notice of claim, sent by certified mail within 30 days after the lease ends.	No statutory cap.	Fla. Stat. § 83.49
Georgia	Not verified yet	2 months' rent (leases entered/renewed on or after July 1, 2024).	O.C.G.A. §§ 44-7-30.1, 44-7-34
Illinois	Landlords with 25+ units in one building or contiguous complex must pay interest on deposits held more than 6 months (765 ILCS 715). Chicago (RLTO) requires interest on all deposits.	No statewide cap.	765 ILCS 710/1; 765 ILCS 715
Iowa	No for the first five years of a tenancy: interest earned in that period belongs to the landlord.	2 months' rent. The deposit must be held in a federally insured bank, savings and loan or credit union account, not mixed with the landlord's own money.	Iowa Code § 562A.12(1)-(4)
Kansas	Not verified yet	1 month's rent for an unfurnished unit; 1.5 months' rent if the tenant uses the landlord's furniture; plus up to half a month's rent extra if pets are allowed.	K.S.A. 58-2550(a)-(c)
Kentucky	Not verified yet	No statewide cap. Under the URLTA (where adopted): deposit must be kept in a separate account used only for deposits, and the landlord must give signed move-in and move-out damage lists, or they cannot keep any of the deposit.	KRS 383.580
Louisiana	No	No statutory cap. The landlord may keep only what is reasonably necessary to remedy the tenant's default or unreasonable wear to the premises (R.S. 9:3251(A)).	La. R.S. 9:3251, 9:3252, 9:3254
Maine	No interest requirement in ch. 710-A.	2 months' rent. At move-in the landlord may not require more than the first full month's rent, the security deposit and any properly disclosed mandatory recurring fee (§ 6022-A). The deposit may not be commingled with the landlord's assets: it must be held in a bank or other financial institution account beyond the reach of the landlord's creditors, and on request the landlord must tell the tenant the institution and account number (§ 6038).	14 M.R.S. §§ 6032, 6033, 6034, 6038, 6022-A
Maryland	Yes: simple interest at the greater of the 1-year U.S. Treasury yield rate or 1.5% per year, only on deposits of $50 or more held at least 6 months.	1 month's rent per unit (since Oct 1, 2024); up to 2 months only if the tenant qualified for utility assistance through the Department of Human Services, the lease requires paying utilities directly to the landlord, and both agree in writing. Overcharge: tenant may recover up to 3x the excess plus attorney fees.	Md. Code, Real Prop. § 8-203(b), (e), (g)
Massachusetts	Yes. If the deposit is held a year or longer, 5% per year or the lesser amount the bank actually paid, paid to the tenant each year with a statement naming the bank, account number and amount (any accrued interest is due within 30 days if the tenancy ends before the anniversary). Interest on prepaid last month's rent is also owed at 5% or the lesser bank rate.	One month's rent. At or before the start of the tenancy the landlord (or its agent) may require only: rent for the first full month, rent for the last full month at the same rate, a security deposit equal to the first month's rent, and the purchase and installation cost of a key and lock. After the tenancy begins the landlord may not demand rent in advance beyond the current month or a larger deposit. The deposit stays the tenant's property: it must be held in a separate interest-bearing account in a bank located in Massachusetts, out of reach of the landlord's creditors, and the tenant must get a receipt within 30 days naming the bank, its location and the account number (failure entitles the tenant to immediate return). The landlord must give a signed receipt when taking the deposit and, within 10 days after the tenancy starts (or on receipt of the deposit, if later), a separate signed written statement of the unit's condition with a prescribed notice; the tenant has 15 days to return it with a list of any other damage. The landlord must also keep records of deposits for two years.	M.G.L. c. 186, § 15B(1)(b), (1)(d), (2), (3), (4), (5)
Michigan	No. The Michigan act does not require interest on the deposit.	1.5 months' rent (554.602). The deposit must be kept in a regulated financial institution, or the landlord must instead post a cash or surety bond with the Secretary of State covering all deposits (554.604). Before it may require a deposit, the landlord must give the tenant a written notice, within 14 days after the tenant takes possession, of the landlord's name and address, the name and address of the financial institution or surety, and the tenant's duty to give a forwarding address within 4 days after moving out, with that warning in bold 12-point type (554.603). The landlord must give the tenant two blank copies of a move-in inventory checklist and a termination checklist is required at move-out; the tenant has 7 days after getting possession to return the move-in checklist (554.608). The deposit may be used only for actual damage beyond normal use, unpaid rent, rent due for early termination, and unpaid tenant utility bills (554.607).	MCL 554.602, 554.603, 554.604, 554.607, 554.608, 554.609, 554.610, 554.611, 554.612, 554.613
Minnesota	Yes: 1% simple, noncompounded interest per year (amounts under $1 excluded).	No statutory cap on the amount.	Minn. Stat. § 504B.178, subds. 2-3
Missouri	No	Two months' rent. Must be held in a federally insured bank, credit union or depository institution; interest earned belongs to the landlord. Pet deposits are not counted as 'security deposit'.	RSMo § 535.300
Montana	No interest requirement in chapter 70-25.	No statutory cap found in chapter 70-25. Any deposit the lease requires counts as a security deposit, and a fee or charge for cleaning and damages, however labelled, is presumed to be one (§ 70-25-101(4)). Any lease term contrary to chapter 70-25, and any tenant waiver of it, is invalid (§ 70-25-103).	MCA §§ 70-25-101, 70-25-103, 70-25-201, 70-25-202, 70-25-203, 70-25-204
Nevada	Not verified yet	3 months' periodic rent total (deposit, surety bond and last month's rent combined).	NRS 118A.242
New Jersey	Yes. The interest belongs to the tenant and is paid each year in cash or credited toward rent on the lease renewal or anniversary (or each January 31 after written notice). Within 30 days of receiving the deposit (and on moving it, on each annual interest payment and on sale of the property) the landlord must tell the tenant in writing the bank's name and address, account type, interest rate and amount. If the landlord fails to invest the deposit, give the notice or pay interest, the tenant may give written notice and apply the deposit plus 7% annual interest to rent, and the landlord can't demand a new deposit; for a missed annual payment or notice the landlord first gets 30 days to fix it (46:8-19(c)).	1.5 times one month's rent. If the landlord collects more security later, the extra collected in any year may not exceed 10% of the current deposit (46:8-21.2). The deposit stays the tenant's money, held in trust and not mixed with the landlord's own funds; it must sit in an interest-bearing account at a New Jersey bank or savings institution (landlords with 10+ units: an insured money-market fund or variable-rate account) (46:8-19(a), (b)).	N.J.S.A. 46:8-19, 46:8-21.1, 46:8-21.2, 46:8-24, 46:8-26
New York	Buildings with 6+ units: interest-bearing account at the prevailing rate; landlord may keep 1% a year as an administrative fee (Gen. Oblig. Law § 7-103). Smaller buildings: held in trust, no interest required.	1 month's rent.	N.Y. Gen. Oblig. Law §§ 7-103, 7-108
North Carolina	Not verified yet	2 weeks' rent (week-to-week), 1.5 months (month-to-month), 2 months (longer terms).	N.C.G.S. §§ 42-51, 42-52
North Dakota	Yes. The landlord must hold the deposit in a federally insured interest-bearing savings or checking account for the tenant's benefit, and pay the deposit and accrued interest on termination of the lease, less permitted deductions. No interest is owed if the period of occupancy was less than nine months (§ 47-16-07.1(1), (3)).	One month's rent. Exceptions: up to two months' rent from an individual convicted of a felony offense as an incentive to rent to them, or from an individual who has had a judgment entered against them for violating a previous rental agreement (§ 47-16-07.1(1)). A separate pet security deposit (not for service or companion animals required as a disability accommodation) may be charged, up to the greater of $2,500 or two months' rent (§ 47-16-07.1(2)).	N.D.C.C. § 47-16-07.1
Ohio	If the deposit exceeds $50 or one month's rent (whichever is greater), the excess earns 5% yearly interest when the tenant stays 6+ months.	No statutory cap.	Ohio Rev. Code § 5321.16
Oregon	Not verified yet	No statutory cap in ORS 90.300; a landlord cannot require a new or increased deposit in the first year of tenancy (except for an agreed change such as adding a pet), and must allow at least 3 months to pay one after that.	ORS 90.300(12)-(13)
Pennsylvania	Deposits over $100 must be held in a separate escrow account; from the third year of the lease it must earn interest, paid to the tenant yearly minus a 1% landlord fee (68 P.S. § 250.511b). Deposits of $100 or less: no escrow or interest.	2 months' rent in the first year; 1 month's rent from the second year on.	68 P.S. §§ 250.511a, 250.511b, 250.512
South Carolina	Not verified yet	No cap on the amount in the Residential Landlord and Tenant Act.	S.C. Code Ann. § 27-40-410
South Dakota	No interest requirement in §§ 43-32-6.1 or 43-32-24.	1 month's rent. A larger deposit is allowed only by agreement of landlord and tenant where special conditions pose a danger to maintenance of the premises. Any money deposited to secure the rental agreement counts as a security deposit, however it is labelled (§ 43-32-6.1).	SDCL §§ 43-32-6.1, 43-32-24
Tennessee	Not verified yet	No statutory cap (Tenn. Code Ann. § 66-28-301 sets none).	Tenn. Code Ann. § 66-28-301
Texas	Not verified yet	No statutory cap.	Tex. Prop. Code §§ 92.103, 92.104, 92.107
Utah	No	No statutory cap. Any non-refundable portion of a deposit must be stated in writing to the renter when the deposit is taken (57-17-2).	Utah Code §§ 57-17-2, 57-17-3, 57-17-5
Virginia	Not verified yet	2 months' periodic rent (security deposit however named). Security deposit plus damage-insurance and renter's-insurance premiums paid before the tenancy starts may not exceed 2 months' rent in total.	Va. Code §§ 55.1-1226(A), 55.1-1208(A)(7)
Washington	Not verified yet	No statewide cap found. A deposit may be collected only with a written lease and a signed, dated move-in checklist describing the unit's condition; without the checklist the landlord is liable for the whole deposit. Deposits go in a Washington trust account and the tenant gets a receipt. On written request, the tenant may pay deposits, nonrefundable fees and last month's rent in installments (2 or 3 months) unless they total no more than 25% of the first month's rent. A fee is refundable unless the written lease clearly calls it nonrefundable.	RCW 59.18.260, 59.18.270, 59.18.280, 59.18.285, 59.18.610
West Virginia	Not verified yet	Not verified yet	W. Va. Code §§ 37-6A-1, 37-6A-2, 37-6A-3, 37-6A-5
Wisconsin	No interest requirement in Wis. Stat. 704.28 or ATCP 134.06.	No statutory cap on the deposit amount in Wis. Stat. 704.28 or ATCP 134.06. Any rent prepayment above one month's prepaid rent counts as a 'security deposit' and must be returned under the same rules (ATCP 134.06(2) note). Before accepting a deposit the landlord must tell the tenant in writing they may inspect the unit and report pre-existing damage, or request a list of damage charged to the previous tenant, by a deadline at least 7 days after the tenancy starts (ATCP 134.06(1)). Wisconsin law has no deposit-interest or separate-account rule in these sections.	Wis. Stat. 704.28; Wis. Admin. Code ATCP 134.06
Wyoming	No. The balance of the deposit and prepaid rent is delivered or mailed "without interest" (§ 1-21-1208(a)).	No statutory cap. A rental agreement must state whether any portion of the deposit is nonrefundable, and written notice of that fact must also be given to the renter when the deposit is taken (§ 1-21-1207).	W.S. 1-21-1207, 1-21-1208

Cities and counties can add stricter rules (e.g. Chicago, New York City). Other states: coming soon.

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