Lease Snipe

Alabama Deposit Interest Rules

no interest required

Alabama has no statewide requirement that landlords pay interest on security deposits (14 of 51 US jurisdictions do). Your lease may still promise interest — if it does, that promise is enforceable.

Educational information: generated from our Alabama law database (last updated 2024-01-01). Not legal advice.

How Alabama compares

14 of 51 US jurisdictions require landlords to pay interest on security deposits. Here is how Alabama compares with other states in our database.

StateDeposit Interest Rules
Alabamano interest required
Alaskano interest required
Arizonano interest required
Arkansasno interest required
Californiano interest required

Frequently asked questions

Do landlords have to pay interest on security deposits in Alabama?
No statewide statute requires it in Alabama, though local ordinances or your lease can add the obligation. Security deposit limited to one month rent, excluding pet deposits or deposits for alterations. Must be returned within 60 days. Failure to return results in double damages.
How large can the deposit itself be in Alabama?
Alabama generally allows at most 1 month's rent as a security deposit.
When do I get my security deposit back in Alabama?
Generally within 60 days after move-out.

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More Alabama lease law guides

Educational information generated from state statute data — not legal advice. Consult a licensed attorney in Alabama for your specific situation.