Minnesota Security Deposit Interest
Minnesota requires deposit interest for covered rentals. The rate rule includes 1%. Condition: Any interest amount less than $1 shall be excluded
Interest rules
| Interest required | Yes |
|---|---|
| Condition | Any interest amount less than $1 shall be excluded |
| Rate rule | Statutory simple noncompounded interest at one percent per annum. Amounts of interest less than $1 are excluded. |
| Current rate | 1% per year |
| How interest builds up | Simple noncompounded interest, 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 return requirements of subdivision 3, or to the date judgment is entered in a civil action involving the landlord's liability for the deposit, whichever is earlier. |
| When it must be paid | Returned with the deposit within three weeks after termination of the tenancy (or within five days if the tenant leaves because of legal condemnation not due to the tenant's willful, malicious, or irresponsible conduct), after receipt of the tenant's mailing address or delivery instructions. |
| When interest may be lost | A tenant who withholds last-period rent on the ground that the deposit should serve as rent, and remains in violation after written demand and notice of subdivision 8, is liable for interest on the whole deposit as provided in subdivision 2, in addition to other amounts. |
| What you can recover | Landlord who fails to provide the written statement or transfer/return the deposit as required is liable for damages equal to the portion of the deposit withheld plus interest thereon as a penalty, in addition to the portion wrongfully withheld and interest. Bad-faith retention of a deposit, the interest thereon, or any portion, subjects the landlord to punitive damages not to exceed $500 for each deposit in addition to the subdivision 4 damages. |
| Statute | Minn. Stat. § 504B.178, subds. 2, 3, 4, 7, 8 |
Statute says
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, i
What this means
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Condition: Any interest amount less than $1 shall be excluded
The result assumes this condition is met.
Statutory simple noncompounded interest at one percent per annum. Amounts of interest less than $1 are excluded.
Listed rate: 1% per year
Accrual: Simple noncompounded interest, 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 return requirements of subdivision 3, or to the date judgment is entered in a civil action involving the landlord's liability for the deposit, whichever is earlier.
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Free Minnesota template, built from verified state data
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 Minnesota law (Minn. Stat. § 504B.178), a landlord must return the deposit or respond in writing within [21 calendar days / 5 calendar days, see the note above] after [the event listed in the note above].
FAQ
Does my landlord owe deposit interest in Minnesota?
Yes, for covered rentals. Any interest amount less than $1 shall be excluded
Which interest rate should I use?
1% per year Statutory simple noncompounded interest at one percent per annum. Amounts of interest less than $1 are excluded.
When must the landlord pay the interest?
Returned with the deposit within three weeks after termination of the tenancy (or within five days if the tenant leaves because of legal condemnation not due to the tenant's willful, malicious, or irresponsible conduct), after receipt of the tenant's mailing address or delivery instructions.