deposit-interest

Security Deposit Interest in Delaware: No State Requirement (2026)

Delaware's Residential Landlord-Tenant Code requires security deposits to be held in escrow (25 Del. C. § 5514) but does not require landlords to… Calculator, statute citation, Last Verified date o

Rule verified: 2026-10-28

Quick answer

No — Delaware law does not require landlords to pay interest on security deposits. Delaware's Residential Landlord-Tenant Code requires security deposits to be held in escrow (25 Del. C. § 5514) but does not require landlords to pay interest on them. The rule comes from Del. Code Ann. tit. 25, § 5514. State statute (official text) · 2026-10-28

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State pre-filled: Delaware — rule applied per Del. Code Ann. tit. 25, § 5514. Switch the state if your property is elsewhere.

StateSecurity deposit ($)Tenancy startTenancy end

What Delaware law does — and does not — require

Delaware has no statewide statute requiring interest on security deposits. Delaware's Residential Landlord-Tenant Code requires security deposits to be held in escrow (25 Del. C. § 5514) but does not require landlords to pay interest on them.

The statute that governs deposits in Delaware, Del. Code Ann. tit. 25, § 5514, covers how and when the deposit itself must be returned — it simply does not mandate interest on top.

How interest must be paid

N/A (no interest required) N/A; deposit must be remitted within 20 days of expiration/termination of the rental agreement, with an itemized list of damages; wrongful withholding entitles the tenant to double the amount (§ 5514)

Who the law applies to

All residential rentals under the Delaware Residential Landlord-Tenant Code (25 Del. C. chs. 51-57)

States that do require deposit interest

Delaware has no statewide requirement. If you are moving or own rentals across state lines, these states do — each rate is the statutory value verified on the state page:

State	Statutory rate
Massachusetts	5% per annum, or the lesser amount of interest actually received from
Ohio	5% per annum
Maryland	greater of 1.5%/year or U.S. Treasury 1-year yield curve rate (leases
Minnesota	1% per annum
New York	Interest actually accrued/paid on the deposit in the interest-bearing

The statute behind it

| Field | Value | | --- | --- | --- | | Citation | Del. Code Ann. tit. 25, § 5514 | | Official text | delcode.delaware.gov | | Last verified | 2026-10-28 |

⚠️ A possible interest requirement for manufactured-home communities (reported in search results as 25 Del. C. ch. 70 'Manufactured Home Owners and Renters Security Deposit Act') was NOT verified — ch. 70 index fetched did not surface deposit-interest section text; treat as open question before publishing any Delaware manufactured-home content

Statutes get amended. If you are relying on this page — for a move-out, a dispute, or a lease draft — click through to the official text and confirm the current wording.

FAQ

Does Delaware require landlords to pay interest on security deposits?

No. Delaware law does not mandate interest; whatever the lease says governs. Delaware's Residential Landlord-Tenant Code requires security deposits to be held in escrow (25 Del. C. § 5514) but does not require landlords to pay interest on them.

How is deposit interest calculated in Delaware?

25 Del. C. § 5514 (verified against the official Delaware Code): each security deposit must be placed in an escrow bank account at a federally insured banking institution and the landlord must disclose the account location; no interest payment is required. Chapters 53 and 55 of Title 25 contain no interest provision (chapter indexes and section text checked). The calculator at the top of this page reflects Delaware's rules where a numeric value exists.

When do I get the interest?

N/A; deposit must be remitted within 20 days of expiration/termination of the rental agreement, with an itemized list of damages; wrongful withholding entitles the tenant to double the amount (§ 5514)

Can my lease require the landlord to pay interest anyway?

Yes — a lease can always give you more than state law requires, never less. If your Delaware lease promises interest, that promise is enforceable as a contract even though no statute mandates it.

Independent second source · 2026-10-28