Security deposit interest in District of Columbia
Yes — District of Columbia landlords must pay interest on security deposits after one year.
Work out what you are owed in District of Columbia
Enter your deposit and dates to see what District of Columbia law entitles you to.
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Not legal advice. This is an estimate for informational purposes only and is 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.
How is the District of Columbia interest rate set?
No fixed statutory rate. Interest accrues at not less than the statement savings rate prevailing at the DC financial institution holding the escrow account, reset every six months on January 1 and July 1. The rate therefore changes twice a year and varies by the bank the housing provider uses, so it cannot be looked up centrally and no published historical table exists. If the provider cannot produce evidence of interest earned, or did not use an interest-bearing account, the Administrative Law Judge applies the DC Superior Court judgment rate prevailing on January 1 and July 1 for each six-month period. Your housing provider must post the rate annually and supply it at the end of the tenancy.
What does District of Columbia law actually say?
The District of Columbia requires all residential security deposits to be held in an interest-bearing escrow account at a federally or state-insured financial institution located in DC, used solely for holding deposits. Interest begins accruing on the date the tenant actually pays the money and accrues at no less than the statement savings rate prevailing on January 1 and July 1 for each 6-month period of the tenancy. All interest earned accrues to the tenant.
Interest becomes due and payable on termination of any tenancy lasting twelve months or more. Deposits are capped at one full month's rent and may be charged only once. The housing provider must post in the building lobby and rental office at the end of each calendar year where deposits are held and the prevailing rate for each 6-month period, and must give the tenant a list of the rate for each 6-month period at the end of the tenancy.
Federal and DC agency units and federally subsidised units are exempt. The Office of Administrative Hearings adjudicates non-payment of interest complaints.
When must a landlord in Washington DC return the deposit?
45 days after the tenancy ends.
What if your landlord does not comply?
Failure to pay interest rightfully owed: liable for the amount of interest owed, or treble that amount in bad faith. Willful violation: civil fine up to $5,000 per violation. Failure to return the deposit: liable for the amount withheld, or treble damages in bad faith. Bad faith means a frivolous or unfounded refusal motivated by a fraudulent, deceptive, misleading, dishonest or unreasonably self-serving purpose, not simple negligence or honest error.