Security deposit interest in Washington
No — Washington does not require landlords to pay interest on security deposits.
There is no interest to calculate — here is what does apply
Washington 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 Washington'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 Wash. Rev. Code Sec. 59.18.270. 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 Washington law actually say?
Washington does not require landlords to pay interest on residential security deposits to tenants. This is a common point of confusion: the statute does require all deposits to be promptly placed in a trust account maintained solely for tenant security deposits at a Washington financial institution or licensed escrow agent, but it expressly provides that unless otherwise agreed in writing the landlord is entitled to receive any interest paid on that account. A tenant therefore only receives interest where their written rental agreement specifically says so.
There is no statutory cap on the deposit amount. The landlord must give the tenant a written receipt for the deposit and written notice of the name, address and location of the depository, and of any subsequent change. Where the landlord's status transfers during the tenancy the deposit must be transferred simultaneously to an equivalent trust account of the successor, who must promptly notify the tenant.
If the unit is foreclosed on and the deposit is not transferred to the successor, the foreclosed-upon owner must immediately refund the full deposit. The tenant's claim to deposit money ranks ahead of any creditor of the landlord, including a trustee in bankruptcy or receiver, even where the money has been commingled.
What if your landlord does not comply?
No interest obligation by default, so no interest penalty unless the rental agreement provides otherwise in writing. A foreclosed-upon owner who neither refunds the deposit nor transfers it to the successor is liable to the tenant for up to twice the amount of the deposit. In any action brought by the tenant to recover the deposit the prevailing party recovers the costs of suit or arbitration, including reasonable attorney fees. Separate provisions at Section 59.18.280 require the landlord to give a full and specific written statement of the basis for retaining any part of the deposit within 30 days of the tenancy ending.