Security deposit interest in South Carolina
No — South Carolina does not require landlords to pay interest on security deposits.
There is no interest to calculate — here is what does apply
South Carolina 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
30 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 South Carolina'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 S.C. Code Sec. 27-40-410. 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 South Carolina law actually say?
South Carolina does not require landlords to pay interest on residential security deposits. The statute contains no interest provision, imposes no escrow or separate account requirement, and sets no cap on the deposit amount. Where a landlord rents more than four adjoining units on the same premises and imposes different deposit terms for different units, the landlord must either post a notice in a conspicuous place or give written notice to each tenant explaining the standards used to set those varying amounts, or lose the right to withhold any part of the deposit.
Deductions are limited to accrued rent and damages the landlord suffered from the tenant's noncompliance. Within 30 days of termination, delivery of possession and the tenant's demand, the landlord must give the tenant a written itemised statement of any deductions together with the balance. If the landlord fails to give that written notice within 30 days, or to return the balance, all claims against the deposit are forfeited.
The tenant must give the landlord a forwarding address in writing on vacating; failing to do so relieves the landlord of the notice requirement.
What if your landlord does not comply?
No interest obligation, so no interest penalty. Failure to provide the written itemised notice and refund within 30 days forfeits all claims against the deposit. A landlord who wrongfully withholds any portion is liable for up to three times the amount wrongfully withheld, plus court costs and reasonable attorney fees.