Security deposit interest in Pennsylvania
Yes — Pennsylvania landlords must pay interest on security deposits on deposits of $100 or more, once the deposit has been held longer than 2 years.
Work out what you are owed in Pennsylvania
Enter your deposit and dates to see what Pennsylvania 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 Pennsylvania interest rate set?
No fixed statutory rate. The tenant receives the interest actually earned by the escrow account at the federally or state-regulated Pennsylvania institution holding the deposit, less a 1 percent per year administrative fee the landlord may keep. Interest is only owed on deposits over 100 dollars held for more than two years, and accrues only from the start of the 25th month of the tenancy, not from the date the deposit was paid.
What does Pennsylvania law actually say?
Pennsylvania requires landlords to deposit any security over 100 dollars held for more than two years into an escrow account at a federally or state-regulated Pennsylvania institution, and to notify the tenant in writing of the institution's name and address and the amount deposited. Interest belongs to the tenant but begins accruing only from the beginning of the 25th month of the tenancy, so nothing accrues during the first two years. The landlord may retain 1 percent per year of the deposit as an administrative fee.
Interest earned during the third and subsequent years must be paid to the tenant annually on the anniversary date of the lease. Deposits are capped at two months' rent during the first year of a lease and one month's rent from the second year onward.
When must a Pennsylvania landlord return the deposit?
30 days after the tenancy ends.
What if your landlord does not comply?
The statute sets no specific penalty for failing to pay interest. Section 250.512 governs the general failure to return the deposit, under which a landlord who fails to return the deposit or provide a written itemised list within 30 days of termination forfeits all rights to withhold any part of the deposit and becomes liable to the tenant for double the amount wrongfully withheld.