Security deposit interest in North Dakota
Yes — North Dakota landlords must pay interest on security deposits after 9 months.
Work out what you are owed in North Dakota
Enter your deposit and dates to see what North Dakota 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 North Dakota interest rate set?
No fixed statutory rate. The deposit must be held in a federally insured interest-bearing savings or checking account, and the tenant receives the interest that account actually earns. Interest is payable only if the tenancy lasts at least nine months, so a shorter tenancy receives nothing. The statute does not say when interest starts accruing. The reading used here is that it accrues from the start of the tenancy, with the nine months governing only whether it becomes payable. That is an inference from the forfeiture clause, which allows the deposit and any interest to be forfeited where a tenant leaves within nine months in breach of the lease. Check Sec. 47-16-07.1 before relying on that reading.
What does North Dakota law actually say?
North Dakota requires landlords to deposit all residential security deposits in a federally insured interest-bearing savings or checking account, held separately from the landlord's own funds. Interest belongs to the tenant, but only where the tenancy lasts at least nine months. Deposits are capped at one month's rent, rising to two months' rent, or 2500 dollars if greater, where the tenant has a felony conviction or a prior lease violation, and one additional month's rent where the tenant keeps a pet, though this pet deposit does not apply to certified assistance animals.
Within 30 days of termination and delivery of the tenant's forwarding address the landlord must return the deposit plus interest, or give an itemised written statement of any damages withheld. Damage means destruction beyond normal wear and tear caused by the tenant or a guest. If the tenant leaves within nine months without cause and in violation of the lease, the deposit and any interest may be forfeited.
Landlords must also make a written accounting of any deductions from the pet deposit.
When must a North Dakota landlord return the deposit?
30 days after the tenancy ends.
What if your landlord does not comply?
A landlord who fails to provide the itemised written statement, or who retains the deposit in bad faith, is liable for treble damages, and the tenant may recover reasonable attorney fees in an action to recover the deposit. Where the landlord fails to give notice of the deposit's location, the tenant may recover the amount withheld.