Ohio security deposit interest
Ohio does not require interest on a normal one-month deposit. The 5% rate kicks in only on the part of a deposit that exceeds the greater of $50 or one month’s rent, and only once the tenant has stayed six months. A landlord who takes two months’ rent as a deposit therefore owes 5% a year on the second month.
Print this page for a dated statement showing the rate applied to each year and the statute.
How Ohio deposit interest works
This is why most Ohio leases set the deposit at exactly one month’s rent. The calculator asks for the monthly rent so it can work out the excess.
The rules in brief
- 5% simple interest on the amount above the greater of $50 or one month’s rent.
- Interest is owed only if the tenant remains in possession for six months or more.
- Deposit and any interest returned within 30 days of termination with an itemised list of deductions; wrongful withholding carries double damages and attorney fees.
Fixed in statute. Does not change year to year.
Worked examples: one year held
At the current rate, for a deposit paid on 1 January 2025 and returned on 1 January 2026. Monthly rent is assumed to be half the deposit, so half the deposit earns interest.
| Deposit | Interest-bearing portion | Interest owed |
|---|---|---|
| $1,000.00 | $500.00 | $25.00 |
| $1,500.00 | $750.00 | $37.50 |
| $2,500.00 | $1,250.00 | $62.50 |
Other Ohio deposit rules
- Maximum deposit: No statutory limit.
- Return deadline: Itemized deductions and refund within 30 days after termination of the rental agreement and delivery of possession; tenant must provide a forwarding address in writing.
- Late fees: No statutory cap or grace period for residential late fees in Ohio; courts enforce only reasonable fees (unreasonable fees may be struck as penalties).
Full page: Ohio landlord and tenant rules.
Frequently asked questions
Does Ohio require interest on a one-month security deposit?
No. Interest is only due on the portion of the deposit that exceeds one month’s rent (or $50 if that is larger).
How much interest is owed on a $2,400 deposit if rent is $1,200?
The excess is $1,200. At 5% a year that is $60 per year, once the tenant has stayed at least six months.
What if I stayed only five months?
No interest is owed. The six-month threshold must be met.