Does a landlord have to pay interest on a security deposit in Massachusetts?
Yes. Massachusetts requires a landlord to pay the tenant interest on a security deposit. 5 % or the bank rate, paid annually; the deposit must be in a separate Massachusetts account named to the tenant. The deposit itself must be returned within 30 days of the end of the tenancy. This is M.G.L. c. 186, § 15B.
| What | Massachusetts |
|---|---|
| Interest payable | Yes |
| How it works | 5 % or the bank rate, paid annually; the deposit must be in a separate Massachusetts account named to the tenant. |
| Deadline to return the deposit | 30 days |
Source
M.G.L. c. 186, § 15B — last checked 2026-09-15.
This is a summary of a published statute, not legal advice. Rules change, local ordinances can add to them, and the terms of a specific lease may differ. Check the citation and speak to a lawyer before acting.
How Seayora uses this rule
Seayora computes the deadline this rule sets from the tenancy’s own dates, shows it on the lease and the deposit statement, and reminds the landlord before it falls due — so the answer above is not reference material sitting beside the product, it is the rule the product enforces.
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The same question in other states
- Connecticut
- District of Columbia
- Illinois
- Iowa
- Maryland
- Minnesota
- New Hampshire
- New Jersey
- New Mexico
- New York
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- Ohio