Security Deposit Interest Calculator — Minnesota
Calculate the interest you owe a Minnesota tenant on their security deposit, using the state's own rule and statute.
This rate is set by statute. You can lower it if your bank paid less.
Interest owed to tenant
$40.57
- Time held
- 2.03 yrs
- Total to return
- $2,040.57
Minnesota rule
Landlords must pay simple, non-compounded interest at 1% per year (since Aug 1, 2003) on the full deposit.
When paid: When the deposit is returned, as simple non-compounded interest.
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 Minnesota treats security deposit interest
Landlords must pay simple, non-compounded interest at 1% per year (since Aug 1, 2003) on the full deposit.
When it must be paid: When the deposit is returned, as simple non-compounded interest.
Worked example
Example: a $1,500.00 deposit held for 2 years at 1.00% per year. Simple interest owed ≈ $30.00, so the landlord returns about $1,530.00 in total. (Rates can change year to year — confirm the current figure.)Last verified June 10, 2026.
Minnesota security deposit obligations
Even where interest isn't required, Minnesota still regulates the deposit itself: you generally must return it within 21 days of move-out (Minn. Stat. § 504B.178). You must include an itemized statement of any deductions. Bad-faith retention can incur punitive damages.
Open the Minnesota deposit return tracker to confirm the deadline and build an itemized deductions statement.
Minnesota security deposit interest FAQ
Do landlords have to pay interest on security deposits in Minnesota?+
Yes. Landlords must pay simple, non-compounded interest at 1% per year (since Aug 1, 2003) on the full deposit. (Minn. Stat. § 504B.178).
How is security deposit interest calculated in Minnesota?+
Interest is simple (non-compounded). Multiply the deposit by the annual rate and by the number of years held. Interest accrues from the start of the tenancy.
When must Minnesota landlords pay the interest to the tenant?+
When the deposit is returned, as simple non-compounded interest.
When must a Minnesota landlord return the security deposit?+
Generally within 21 days of move-out (Minn. Stat. § 504B.178). 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.