District of Columbia security deposit interest
District of Columbia landlords must keep security deposits in an interest-bearing escrow account at a DC financial institution and pay the tenant the interest at the end of the tenancy. The rate is the bank’s statement savings rate as of 1 January and 1 July each year, so a long tenancy accumulates interest at a series of six-month rates.
Print this page for a dated statement showing the rate applied to each year and the statute.
How District of Columbia deposit interest works
Interest is owed only to tenants who stayed at least 12 months, and the landlord may keep it if the tenant breached the lease. The deposit is capped at one month’s rent and must be returned, with interest and an itemised list of deductions, within 45 days of the tenant leaving. Bad-faith withholding carries treble damages.
The rules in brief
- Escrow account in a DC bank; interest at the statement savings rate, reset each 1 January and 1 July.
- Interest owed to tenants who occupied the unit for 12 months or more.
- Deposit capped at one month’s rent; returned with interest within 45 days.
- Treble damages for bad-faith withholding of the deposit or interest.
Set by the holding bank, semi-annually. Rate in effect on 1 January and 1 July of each year.
Worked examples: one year held
Assuming an account rate of 0.5%. Enter the real rate from the landlord’s notice in the calculator.
| Deposit | Interest-bearing portion | Interest owed |
|---|---|---|
| $1,000.00 | $1,000.00 | $5.00 |
| $1,500.00 | $1,500.00 | $7.50 |
| $2,500.00 | $2,500.00 | $12.50 |
Other District of Columbia deposit rules
- Maximum deposit: 1 month's rent (may not exceed the first full month's rent charged to the tenant, and may be charged only once).
- Return deadline: 45 days after termination of the tenancy to return the deposit with accrued interest, or to give written notice of intent to withhold; an itemized statement and any balance must follow within 30 days of that notice.
- Late fees: Late fee may not exceed 5% of the full amount of rent due, and may be charged only if rent is unpaid more than 5 days after the due date (or any longer grace period in the lease). Only one fee per late payment, no interest on late fees, the lease must disclose the maximum fee, no fee on the portion of rent paid by a subsidy, and unpaid late fees cannot be grounds for eviction.
Full page: District of Columbia landlord and tenant rules.
Frequently asked questions
What is the DC security deposit interest rate?
There is no single DC-wide figure. It is the statement savings rate at the bank holding the escrow account, as of 1 January and 1 July each year. The landlord must disclose the rate on request.
Do I get interest on a short tenancy?
No. Interest is owed only if you occupied the unit for at least 12 months.
Can the landlord keep the interest?
Only if you breached the lease. Otherwise it is paid with the deposit within 45 days of move-out.