District of Columbia Security Deposit Interest

District of Columbia requires deposit interest under certain conditions. The rate is set by the deposit bank. Condition: Interest on an escrow account shall be due and payable by the owner to the tenant upon termination of any tenancy of a duration of twelve (12) months or more (14 DCMR § 311.2).

Interest rules

Interest required	Conditional
Condition	Interest on an escrow account shall be due and payable by the owner to the tenant upon termination of any tenancy of a duration of twelve (12) months or more (14 DCMR § 311.2).
Rate rule	Not less than the statement savings rate then prevailing on January 1st and on July 1st for each 6-month period (or part thereof) of the tenancy which follows those dates, using the statement savings rate in the District of Columbia financial institution in which the escrow account is held.
Current rate	Set by the bank where the deposit is held
How interest builds up	Commences on the date the money is actually paid by the tenant. Computed for each 6-month period (or part thereof). If the housing provider invests at a rate exceeding the statement savings rate, the provider may apply up to 30% of the excess interest for administrative costs.
When it must be paid	Due and payable upon termination of a tenancy of 12 months or more, unless an amount is deducted under 14 DCMR § 309.
When interest may be lost	No separate forfeiture rule is supplied here; check the statute before assuming interest is lost.
What you can recover	OAH may adjudicate complaints for nonpayment of interest on tenant security deposits (D.C. Code § 42-3502.17(b); 14 DCMR §§ 308–311). If the housing provider fails to produce evidence of interest earned, or the deposit was not held in an interest-bearing account, 1 DCMR § 2941.3 directs the ALJ to apply the Superior Court judgment rate prevailing on January 1 and July 1 for each six-month period.
Statute	D.C. Code § 42-3502.17; 14 DCMR §§ 308–311; 1 DCMR § 2941

Statute says

The Office of Administrative Hearings may adjudicate complaints for the non-return of tenant security deposits and for the nonpayment of interest on tenant security deposits pursuant to section 2908 of the Housing Regula

D.C. Code § 42-3502.17; 14 DCMR §§ 308–311; 1 DCMR § 2941

What this means

This is the longest excerpt in the supplied research record. Read the linked source for the complete provision.

Source accessed: 2026-09-20.

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This estimate holds the selected rate constant for the whole period. Past or future rates may differ. It assumes interest has not already been paid and does not apply forfeiture rules.

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Condition: Interest on an escrow account shall be due and payable by the owner to the tenant upon termination of any tenancy of a duration of twelve (12) months or more (14 DCMR § 311.2).

The result assumes this condition is met.

Not less than the statement savings rate then prevailing on January 1st and on July 1st for each 6-month period (or part thereof) of the tenancy which follows those dates, using the statement savings rate in the District of Columbia financial institution in which the escrow account is held.

Accrual: Commences on the date the money is actually paid by the tenant. Computed for each 6-month period (or part thereof). If the housing provider invests at a rate exceeding the statement savings rate, the provider may apply up to 30% of the excess interest for administrative costs.

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I rented [rental property address] from [lease start date] to [move-out date]. I paid a security deposit of $[amount]. I returned the keys on [date] and gave you my forwarding address in writing on [date]. Under District of Columbia law (D.C. Code § 42-3502.17), a landlord must return the deposit or respond in writing within [45 calendar days / 30 calendar days, see the note above] after [the event listed in the note above].

FAQ

Does my landlord owe deposit interest in District of Columbia?

Only when the legal condition is met. Interest on an escrow account shall be due and payable by the owner to the tenant upon termination of any tenancy of a duration of twelve (12) months or more (14 DCMR § 311.2).

Which interest rate should I use?

Set by the bank where the deposit is held; there is no statewide numeric rate.

When must the landlord pay the interest?

Due and payable upon termination of a tenancy of 12 months or more, unless an amount is deducted under 14 DCMR § 309.