Massachusetts Interest on deposits

Does a landlord have to pay interest on a security deposit in Massachusetts?

Deposits must be held in a separate, interest-bearing Massachusetts bank account, with a receipt (bank, amount and account number) within 30 days. A landlord who holds a deposit for a year or more owes 5% a year, or the lesser rate the bank actually paid, payable each year. Last month's rent also earns interest.

Verified Source: M.G.L. c. 186, § 15B(3)(a)–(b), (2)(b) · last checked 2026-10-15