How Much Interest Is Your Landlord Holding? Calculate Your Security Deposit Interest
Key Takeaways
- 1Your landlord might owe you interest on your security deposit—most renters never claim it
- 211 major U.S. cities have laws requiring landlords to pay deposit interest, with rates ranging from 0.01% to 5.2%
- 3The rules are different everywhere: some cities set a fixed rate, others use a formula, others tie it to the bank account
- 4Our free calculator covers all 11 cities, handles the year-by-year math, and generates a demand letter
Here's something most renters don't know: in many U.S. cities, your landlord is legally required to pay you interest on your security deposit. Not a lot of interest, usually. But if you've been renting for a few years, it adds up. And if your landlord hasn't been paying it, they might owe you penalties on top.
The problem is that the laws are a mess. Every city has different rules, different rates, different eligibility requirements. Some set the rate annually. Some use a formula. Some just say “whatever the bank pays.” Good luck figuring out what you're owed without a spreadsheet and a law degree.
So we built a calculator that does it for you. Enter your city, deposit amount, and move-in date. It tells you if you're eligible, calculates what you're owed year by year, and generates a demand letter you can send to your landlord.
Free Tool
Security Deposit Interest Calculator
Check eligibility, calculate interest, and generate a demand letter. Covers 11 cities with year-by-year breakdowns.
Which Cities Require Deposit Interest?
We currently support 11 cities. Each one has its own statute, its own rate structure, and its own quirks. Here's the quick rundown:
Fixed Rate Cities
These cities publish a specific interest rate each year. The rate changes annually, but you always know exactly what it is.
San Francisco
Law: SF Admin. Code ch. 49 | Rate basis: 90-day AA commercial paper rate | Paid: Annually on anniversary date | Min hold: 12 months
| Period | Rate |
|---|---|
| 3/1/2020 – 2/28/2021 | 2.20% |
| 3/1/2021 – 2/28/2022 | 0.60% |
| 3/1/2022 – 2/28/2023 | 0.10% |
| 3/1/2023 – 2/29/2024 | 2.30% |
| 3/1/2024 – 2/28/2025 | 5.20% |
| 3/1/2025 – 2/28/2026 | 5.00% |
Note: SF uses March-to-March periods, not calendar years. A $3,000 deposit held since 2020 would have accrued over $400 in interest by now.
Los Angeles (RSO Units)
Law: LAMC 151.06.02 | Rate basis: Set annually by LAHD | Min hold: 12 months | Applies to: Rent Stabilization Ordinance units only
| Year | Rate |
|---|---|
| 2020 | 0.23% |
| 2021 | 0.06% |
| 2022 | 0.03% |
| 2023 | 0.04% |
| 2024 | 0.52% |
| 2025 | 4.32% |
LA rates were near zero for years, but jumped to 4.32% in 2025. If you're in an RSO unit, check now—this year alone could be meaningful.
Berkeley
Law: Berkeley Municipal Code 13.76.070 | Rate basis: Average of savings rates at local banks | Paid: Annually in December or at move-out | Min hold: 12 months
| Year | Rate |
|---|---|
| 2020 | 0.20% |
| 2021 | 0.00% |
| 2022 | 0.10% |
| 2023 | 0.70% |
| 2024 | 1.20% |
| 2025 | 0.90% |
Minneapolis
Law: MN Stat. § 504B.178 | Rate: Flat 1% per year (simple, non-compounded) | Min hold: None
Minneapolis keeps it simple: 1% per year, every year, no exceptions. Changed from a variable rate in 2018. On a $1,500 deposit held for 5 years, that's $75 owed.
Hartford (Connecticut statewide)
Law: CGS § 47a-21 | Rate basis: Set annually by Banking Commissioner | Min hold: None
| Year | Rate |
|---|---|
| 2020 | 0.15% |
| 2021 | 0.08% |
| 2022 | 0.06% |
| 2023 | 0.27% |
| 2024 | 0.55% |
| 2025 | 0.52% |
This applies statewide in Connecticut, not just Hartford. We use Hartford as the reference city.
Chicago
Law: Chicago Municipal Code 5-12-080 | Rate basis: Set annually by City Comptroller | Applies to: RLTO units (not owner-occupied 1-6 units) | Paid: Annually or credited to rent
Chicago's rate has been stuck at 0.01% since 2020. On a $2,000 deposit, that's about 20 cents a year. Not worth a demand letter on its own—but the RLTO has other teeth. If your landlord didn't hold the deposit in a separate, insured, interest-bearing account, you may be entitled to the return of the full deposit plus damages.
Formula & Bank-Rate Cities
These cities don't publish a simple rate. Instead, the interest you're owed depends on a formula or on whatever the bank actually pays. This makes it harder to calculate on your own—which is exactly why we built the tool.
New York City
Law: NY GOL § 7-103 | Formula: Prevailing bank rate minus 1% admin fee | Applies to: Buildings with 6+ units | Min hold: None
NYC landlords must hold your deposit in an interest-bearing account at a New York bank and tell you the bank's name and address. They can keep 1% per year as an admin fee. The interest you're owed is whatever the bank pays, minus that 1%.
Most NYC bank savings rates are so low that after the 1% admin deduction, tenants are owed very little. But the procedural requirements matter: if your landlord didn't put the deposit in a separate account, or didn't notify you of the bank details, that's a violation.
Boston (Massachusetts statewide)
Law: M.G.L. c. 186, § 15B | Formula: 5% or actual bank interest, whichever is lower | Paid: Annually on anniversary | Min hold: 12 months
Massachusetts is unique: if your landlord didn't put the deposit in a bank account at all, they owe you 5% per year. If they did, you get whatever the bank paid. Either way, 5% is the cap. This is one of the more tenant-friendly laws in the country.
Baltimore (Maryland statewide)
Law: MD Real Prop Code § 8-203 | Formula: Greater of 1.5% or 1-year US Treasury yield | Calculated: Every 6 months | Min hold: 6 months
Maryland guarantees a floor of 1.5% or the Treasury yield, whichever is higher. Simple interest, calculated semi-annually. With Treasury yields above 4% in recent years, this can add up fast.
Newark (New Jersey statewide)
Law: NJSA 46:8-19 | Rate: Whatever the bank account earns | Exemption: Owner-occupied with 2 or fewer units
New Jersey requires the deposit go into an interest-bearing account. You're entitled to all interest earned, minus a small admin fee. Landlord must notify you of the bank name and account type.
Washington, DC
Law: DC Code § 42-3502.17 | Rate: Passbook rate of the account | Paid: At end of tenancy | Min hold: 12 months
DC landlords must post the interest rate in the building lobby. Interest is paid at the passbook savings rate, which has been low in recent years but is still legally required.
How We Calculate It
Our calculator uses simple (non-compounding) interest with year-by-year breakdowns. Here's what it does under the hood:
- Checks your eligibility — Based on your city, unit type, and how long the deposit has been held. Some cities have minimum hold periods (6-12 months) and unit restrictions (e.g., RSO in LA, 6+ unit buildings in NYC).
- Looks up the correct rate for each year — For fixed-rate cities, we use the exact published rate for each period. For formula cities, we estimate based on prevailing rates and note where you may need to verify with your bank.
- Prorates partial years — If you moved in mid-year, you only get interest for the days you were actually in the tenancy. We calculate based on exact date ranges, not rounded years.
- Generates a demand letter — Once you know what you're owed, the tool creates a letter citing the specific law, your deposit amount, and the calculated interest.
Fixed rates for all supported cities are sourced from official city and state publications. For formula-based cities (NYC, Boston, Baltimore, Newark, DC), we use estimated rates and flag the calculation accordingly. We update rates as they're published by each jurisdiction.
How to Get Your Deposit Interest Back
If you've run the calculator and your landlord owes you money, here's what to do—in order.
Step 1: Send a Friendly Email
Start casual. Most landlords genuinely don't know they owe deposit interest. A brief, non-threatening email is usually enough:
Give them a week or two. Many landlords will just pay it once they realize it's a legal requirement. If they don't respond or push back, move to step 2.
Step 2: Send a Formal Demand Letter
A demand letter is a written request that cites the specific law, states the amount owed, and sets a deadline. It's not a lawsuit—it's the step before a lawsuit. But it signals that you know your rights and you're serious.
After calculating your interest, our tool generates a demand letter with the correct legal citation, your deposit details, and the year-by-year breakdown. You can download it, customize it, and send it.
Step 3: Escalate If Needed
If the demand letter doesn't work, your options depend on your jurisdiction:
- File a complaint with your city's tenant protection agency or housing department
- Deduct from rent — Some jurisdictions allow this (check your local law first)
- Sue in small claims court — For amounts within the limit, this is fast and cheap
- Cite it in a broader dispute — If you're already in a deposit dispute at move-out, unpaid interest strengthens your case
In some cities, landlords who fail to comply with deposit interest laws face penalties beyond just the interest owed. In Massachusetts, for example, a landlord who doesn't properly handle the deposit may have to return the entire amount. Check your local statute for specifics.
Free Tool
Check What You're Owed
Enter your city, deposit amount, and move-in date. Get a year-by-year breakdown and a demand letter you can send today.