Security Deposit Interest Calculator — Iowa
Calculate the interest you owe a Iowa tenant on their security deposit, using the state's own rule and statute.
The rate equals what your bank actually paid. Enter your account's rate for an accurate figure.
Interest owed to tenant
$0.00
Interest does not begin until the deposit has been held at least 60 months.
- Time held
- 2.03 yrs
- Total to return
- $2,000.00
Iowa rule
Any interest earned on the deposit during the first five years of the tenancy belongs to the landlord. After five years, accrued interest is paid to the tenant.
When paid: After five years; interest earned in the first five years is the landlord's.
Last verified June 10, 2026.
Not legal advice. LandlordKit provides general informational tools, not legal advice. Landlord-tenant laws change and vary by city and county. Verify the cited statute and consult a licensed attorney before acting on any result.
How Iowa treats security deposit interest
Any interest earned on the deposit during the first five years of the tenancy belongs to the landlord. After five years, accrued interest is paid to the tenant.
When it must be paid: After five years; interest earned in the first five years is the landlord's.
Worked example
Example: a $1,500.00 deposit held under Iowa's 60-month threshold earns no interest yet — Interest does not begin until the deposit has been held at least 60 months.Last verified June 10, 2026.
Iowa security deposit obligations
Even where interest isn't required, Iowa still regulates the deposit itself: you generally must return it within 30 days of move-out (Iowa Code § 562A.12). You must include an itemized statement of any deductions.
Open the Iowa deposit return tracker to confirm the deadline and build an itemized deductions statement.
Iowa security deposit interest FAQ
Do landlords have to pay interest on security deposits in Iowa?+
Yes. Any interest earned on the deposit during the first five years of the tenancy belongs to the landlord. After five years, accrued interest is paid to the tenant. (Iowa Code § 562A.12).
How is security deposit interest calculated in Iowa?+
Interest is simple (non-compounded). Multiply the deposit by the annual rate and by the number of years held. Interest only begins after the deposit has been held 60 months.
When must Iowa landlords pay the interest to the tenant?+
After five years; interest earned in the first five years is the landlord's.
When must a Iowa landlord return the security deposit?+
Generally within 30 days of move-out (Iowa Code § 562A.12). Use the LandlordKit deposit return tracker for the exact rule and an itemized statement.
Is the LandlordKit security deposit interest calculator free?+
Yes — it's completely free, requires no signup, and you can download a PDF interest statement to give your tenant.
Other states
Need the full picture? See the security deposit interest calculator for all states.