Pennsylvania Security Deposit Interest

Pennsylvania requires deposit interest under certain conditions. The rate is set by the deposit bank. Condition: Applies only after the second anniversary of the deposit. Applies to funds over one hundred dollars ($100) deposited to secure a residential rental agreement.

Interest rules

Interest required	Conditional
Condition	The provisions of this section shall apply only after the second anniversary of the deposit of escrow funds. Applies to funds over one hundred dollars ($100) deposited to secure a residential rental agreement.
Rate rule	Interest actually paid on the interest-bearing escrow account, minus a landlord administrative fee of one percent per annum on the security money deposited. No statewide numeric rate is published.
Current rate	Set by the bank where the deposit is held
How interest builds up	Not specified as simple or compound. Interest (minus the 1% admin fee) is the tenant's money.
When it must be paid	The balance of the interest paid shall be paid to the tenant annually upon the anniversary date of the commencement of his lease.
When interest may be lost	No separate forfeiture rule is supplied here; check the statute before assuming interest is lost.
What you can recover	liable in assumpsit to double the amount by which the sum deposited in escrow, including any unpaid interest thereon, exceeds the actual damages
Statute	68 P.S. § 250.511b (Landlord and Tenant Act of 1951, § 511.2)

Statute says

the lessor shall be entitled to receive as administrative expenses, a sum equivalent to one per cent per annum upon the security money so deposited, which shall be in lieu of all other administrative and custodial expens

68 P.S. § 250.511b (Landlord and Tenant Act of 1951, § 511.2)

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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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.

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Condition: The provisions of this section shall apply only after the second anniversary of the deposit of escrow funds. Applies to funds over one hundred dollars ($100) deposited to secure a residential rental agreement.

The result assumes this condition is met.

Interest actually paid on the interest-bearing escrow account, minus a landlord administrative fee of one percent per annum on the security money deposited. No statewide numeric rate is published.

Accrual: Not specified as simple or compound. Interest (minus the 1% admin fee) is the tenant's money.

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Read the selected state's interest rules

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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 Pennsylvania law (68 P.S. §§ 250.511a, 250.511b, 250.511c, 250.512), a landlord must return the deposit or send a written, itemized list of deductions within 30 days after termination of the lease or upon surrender and acceptance of the leasehold premises, whichever first occurs.

FAQ

Does my landlord owe deposit interest in Pennsylvania?

Only when the legal condition is met. The provisions of this section shall apply only after the second anniversary of the deposit of escrow funds. Applies to funds over one hundred dollars ($100) deposited to secure a residential rental agreement.

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 balance of the interest paid shall be paid to the tenant annually upon the anniversary date of the commencement of his lease.