Security deposit interest in Alabama
No — Alabama does not require landlords to pay interest on security deposits.
There is no interest to calculate — here is what does apply
Alabama sets no interest requirement, so there is no figure to work out. The rules below are the ones that decide whether you get your deposit back in full, which is usually the larger sum anyway.
Deadline to return your deposit
60 days after the tenancy ends.
Miss it and the consequences below start to apply.
What to do next
- Give your landlord a written forwarding address. Several states make the return duty conditional on it, and Alabama's rules are summarised below.
- Photograph the unit at move-out, dated, before you hand back the keys. The dispute is almost always about condition.
- If the deadline passes, put the request in writing and cite Ala. Code Sec. 35-9A-201 (Alabama Uniform Residential Landlord and Tenant Act). Keep a copy of what you sent and when.
Not legal advice. This is general information, not legal advice. Security deposit laws change and vary by jurisdiction. Verify with the cited statute or consult a licensed attorney in your state before taking action.
What does Alabama law actually say?
Alabama does not require landlords to pay interest on residential security deposits. The statute contains no interest provision and imposes no escrow or separate account requirement. Security deposits are capped at one month's periodic rent, though this cap does not apply to additional amounts the landlord may reasonably require for pet damage, alterations the tenant requests, or activities that increase liability risks.
Deposits may only be applied to actual damages under the Act. Within 60 days of termination and delivery of possession the landlord must provide an itemised written notice of any deductions together with the amount due, sent to the tenant's last known address. The tenant must give the landlord a written forwarding address; failing to do so forfeits the tenant's right to damages under this section, though the landlord must still return any amount owed.
What if your landlord does not comply?
No interest obligation, so no interest penalty. If the landlord fails to provide the itemised notice and return the amount due within 60 days, the tenant may recover the money owed plus damages equal to the amount wrongfully withheld. The tenant loses the right to those damages if they did not provide a written forwarding address.