North Dakota Security Deposit Interest
North Dakota requires deposit interest under certain conditions. The rate is set by the deposit bank. Condition: A lessor is not required to pay interest on security deposits if the period of occupancy was less than nine months in duration.
Interest rules
| Interest required | Conditional |
|---|---|
| Condition | A lessor is not required to pay interest on security deposits if the period of occupancy was less than nine months in duration. |
| Rate rule | The deposit must be placed in a federally insured interest-bearing savings or checking account for the benefit of the tenant; the tenant receives whatever interest accrues on that account. No statewide numeric rate is published. |
| Current rate | Set by the bank where the deposit is held |
| How interest builds up | Interest accruing on the deposit. Statute does not specify simple vs compound. |
| When it must be paid | The security deposit and any interest accruing on the deposit must be paid to the lessee upon termination of a lease, subject to lawful deductions, with itemization delivered or mailed within thirty days after termination of the lease and delivery of possession. |
| When interest may be lost | No separate forfeiture rule is supplied here; check the statute before assuming interest is lost. |
| What you can recover | A lessor is liable for treble damages for any security deposit money withheld without reasonable justification. The treble-damages clause is written in terms of withheld security-deposit money, not a separate interest-only penalty. |
| Statute | N.D. Cent. Code § 47-16-07.1 |
Statute says
The security deposit and any interest accruing on the deposit must be paid to the lessee upon termination of a lease, subject to the conditions of subsection 2
What this means
This is the longest excerpt in the supplied research record. Read the linked source for the complete provision.
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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.
Condition: A lessor is not required to pay interest on security deposits if the period of occupancy was less than nine months in duration.
The result assumes this condition is met.
The deposit must be placed in a federally insured interest-bearing savings or checking account for the benefit of the tenant; the tenant receives whatever interest accrues on that account. No statewide numeric rate is published.
Accrual: Interest accruing on the deposit. Statute does not specify simple vs compound.
Enter your deposit and dates to see an estimate.
Free North Dakota 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 North Dakota law (N.D. Cent. Code § 47-16-07.1), a landlord must return the deposit or send a written, itemized list of deductions within 30 calendar days after termination of the lease and delivery of possession by the lessee.
FAQ
Does my landlord owe deposit interest in North Dakota?
Only when the legal condition is met. A lessor is not required to pay interest on security deposits if the period of occupancy was less than nine months in duration.
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?
The security deposit and any interest accruing on the deposit must be paid to the lessee upon termination of a lease, subject to lawful deductions, with itemization delivered or mailed within thirty days after termination of the lease and delivery of possession.