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Massachusetts Deposit Interest Rules

interest required

Massachusetts is one of 14 US jurisdictions that require landlords to pay interest on security deposits in covered rentals — the FAQ below covers which tenancies qualify. If your lease is silent about interest, the statutory obligation still applies where it covers you.

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

How Massachusetts compares

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

StateDeposit Interest Rules
Massachusettsinterest required
Michiganno interest required
Minnesotainterest required (deposits held 1+ year)
Mississippino interest required
Missourino interest required

Frequently asked questions

Do landlords have to pay interest on security deposits in Massachusetts?
Yes — Massachusetts law requires interest on held security deposits in covered rentals. Maximum 1 month rent (separate from first/last month rent and key deposit). Must be held in separate interest-bearing MA bank account. Interest paid annually at lower of 5% or actual bank rate. Receipt required within 30 days. Violation: triple damages plus attorney fees.
How large can the deposit itself be in Massachusetts?
Massachusetts generally allows at most 1 month's rent as a security deposit.
When do I get my security deposit back in Massachusetts?
Generally within 30 days after move-out, together with any interest owed.

Check Your Lease Against Massachusetts Law

Not sure whether your lease complies with Massachusetts law? Upload it and our analyzer flags problem clauses — deposit terms, entry rights, fees and prohibited provisions — using the same statute-backed database this page is generated from.

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More Massachusetts lease law guides

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