New Mexico Security Deposit Interest
New Mexico requires deposit interest under certain conditions. The rate is set by the deposit bank. Condition: Under the terms of an annual rental agreement, if the owner demands or receives of the resident such a deposit in an amount greater than one month's rent
Interest rules
| Interest required | Conditional |
|---|---|
| Condition | Under the terms of an annual rental agreement, if the owner demands or receives of the resident such a deposit in an amount greater than one month's rent |
| Rate rule | Annually an interest equal to the passbook interest permitted to savings and loan associations in this state by the federal home loan bank board on such deposit. |
| Current rate | Set by the bank where the deposit is held |
| How interest builds up | Paid annually. Statute does not specify simple vs compound. |
| When it must be paid | within thirty days after the termination of the residency |
| When interest may be lost | No separate forfeiture rule is supplied here; check the statute before assuming interest is lost. |
| What you can recover | forfeit the right to withhold any portion of the deposit |
| Statute | NMSA 1978, § 47-8-18(A)(1) |
Statute says
the owner shall be required to pay to the resident annually an interest equal to the passbook interest permitted to savings and loan associations in this state by the federal home loan bank board on such deposit.
What this means
This is the longest excerpt in the supplied research record. Read the linked source for the complete provision.
This excerpt links to a statute reprint, not an official government page.
Source accessed: .
Open the security deposit interest calculator
Estimate your deposit interest
Choose your state and enter your deposit and dates. Nothing you enter leaves this page.
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.
Condition: Under the terms of an annual rental agreement, if the owner demands or receives of the resident such a deposit in an amount greater than one month's rent
The result assumes this condition is met.
Annually an interest equal to the passbook interest permitted to savings and loan associations in this state by the federal home loan bank board on such deposit.
Accrual: Paid annually. Statute does not specify simple vs compound.
Enter your deposit and dates to see an estimate.
Free New Mexico 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 New Mexico law (N.M. Stat. Ann. § 47-8-18), a landlord must return the deposit or send a written, itemized list of deductions within 30 calendar days after the date of termination of the rental agreement or resident departure, whichever is later.
FAQ
Does my landlord owe deposit interest in New Mexico?
Only when the legal condition is met. Under the terms of an annual rental agreement, if the owner demands or receives of the resident such a deposit in an amount greater than one month's rent
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?
within thirty days after the termination of the residency