Security deposit interest in Tennessee
No — Tennessee does not require landlords to pay interest on security deposits.
There is no interest to calculate — here is what does apply
Tennessee 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 Tennessee'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 Tenn. Code Ann. Sec. 66-28-301 (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 Tennessee law actually say?
Tennessee does not require landlords to pay interest on residential security deposits to tenants. The statute does require every landlord who requires a deposit to hold it in an account used only for that purpose at a federally regulated financial institution, and the tenant must be told the location of that account, but nothing obliges the landlord to pay any interest earned to the tenant. There is no statutory cap on the deposit amount.
On request the tenant has the right to inspect the premises at move-out to identify any damage forming the basis of a charge, and must be given a written list of damages signed by both parties. Where the tenant refuses to sign they must state their specific dissents in writing. Where the tenant does not request an inspection within the required period the landlord may dispose of the deposit as permitted.
Within 30 days of termination or 30 days after the tenant vacates, whichever is later, the landlord must send written notice to the tenant's last known address of any refund due. If the tenant does not respond within 60 days of that notice the landlord may keep the deposit free of any claim. Where the tenant vacates owing rent or other amounts, the landlord may remove the deposit from the account and apply it to that debt.
What if your landlord does not comply?
No interest obligation, so no interest penalty. A landlord who fails to hold the deposit in a separate account, or who fails to provide the required written itemisation of damages, forfeits the right to retain any portion of the deposit. A tenant who fails to request an inspection or to specifically dissent from the damage list in writing loses the right to contest those deductions. This section applies only in counties with a population above the statutory threshold set by the Act.