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Do landlords have to pay interest on security deposits in Minnesota, and when is it due?
Short answer
Deposit interest: 1% simple per year, paid with the deposit at return
Payment timing: Within 21 days after move-out
Deposits earn simple, noncompounded interest of 1% per year, set by statute, from the first of the month after the deposit is paid in full; pay it with the returned deposit within three weeks after the tenancy ends.
"shall bear simple noncompounded interest at the rate of one percent per annum, computed from the first day of the next month following the full payment of the deposit to the last day of the month in which the landlord, in good faith, complies with the requirements of subdivision 3" revisor.mn.gov
"Any interest amount less than $1 shall be excluded from the provisions of this section." revisor.mn.gov
Deposit interest: 1% simple per year, paid with the deposit at return Verified
Deadline: Within 21 days after move-out
Deposits earn simple, noncompounded interest of 1% per year, set by statute, from the first of the month after the deposit is paid in full; pay it with the returned deposit within three weeks after the tenancy ends.
Who it covers: The rate is fixed in the statute (no annual published rate). Interest runs from the first day of the month after the deposit is fully paid to the last day of the month you comply with the return rules; amounts under $1 are excluded.
"shall bear simple noncompounded interest at the rate of one percent per annum, computed from the first day of the next month following the full payment of the deposit to the last day of the month in which the landlord, in good faith, complies with the requirements of subdivision 3" revisor.mn.gov
"Any interest amount less than $1 shall be excluded from the provisions of this section." revisor.mn.gov