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States/Minnesota/1% Interest
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Minnesota renter guide

Minnesota 1% Security Deposit Interest Rule

Minnesota requires a qualifying security deposit to bear simple, noncompounded interest at one percent per year, generally beginning on the first day of the month following full payment and ending under the statutory return/judgment rule.

Last reviewed: August 30, 20262 official sources cited
Rate1% per year

Simple, noncompounded.

Small amount exceptionInterest under $1 excluded

Express statutory rule.

Check the dates

  • Full deposit-payment date.
  • First day of the next month.
  • Month the landlord returns/accounts for the deposit.
  • Interest included in the final payment.

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Security Deposit Interest by State
Compare dedicated interest, bank-account and escrow rules.
Educational statewide guide. Billing method, lease disclosures, address/delivery instructions, inspections and local rules can change the result. This page is not legal advice.

Official sources

Minnesota Revisor of StatutesMinnesota Statutes § 504B.178 — security deposits ↗

Current official statute for 1% interest, 21-day return/accounting, ordinary-wear exclusion, burden of proof and remedies.

Minnesota Attorney GeneralEnding the Tenancy — Landlords & Tenants ↗

Official consumer guide explaining deposit refunds, one-percent interest, withholding and inspection rights.

Related Minnesota guides

Security Deposit →21-Day Rule →Initial Inspection →Move-Out Inspection →