deposit-interest

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

Indiana does not require landlords to pay interest on security deposits; IC 32-31-3 governs deposits (no cap on amount, 45-day return with itemiz… Calculator, statute citation, Last Verified date o

Rule verified: 2026-10-28

Quick answer

No — Indiana law does not require landlords to pay interest on security deposits. Indiana does not require landlords to pay interest on security deposits; IC 32-31-3 governs deposits (no cap on amount, 45-day return with itemized deductions) and contains no interest mandate. The rule comes from Indiana Code § 32-31-3 (Security Deposits), esp. IC 32-31-3-12. State statute (official text) · 2026-10-28

Calculator pre-loaded with this state:

State pre-filled: Indiana — rule applied per Indiana Code § 32-31-3 (Security Deposits), esp. IC 32-31-3-12. Switch the state if your property is elsewhere.

StateSecurity deposit ($)Tenancy startTenancy end

What Indiana law does — and does not — require

Indiana has no statewide statute requiring interest on security deposits. Indiana does not require landlords to pay interest on security deposits; IC 32-31-3 governs deposits (no cap on amount, 45-day return with itemized deductions) and contains no interest mandate.

The statute that governs deposits in Indiana, Indiana Code § 32-31-3 (Security Deposits), esp. IC 32-31-3-12, covers how and when the deposit itself must be returned — it simply does not mandate interest on top.

How interest must be paid

Interest accrues as N/a - no statutory interest requirement. N/a - deposit or itemized damage list due within 45 days after termination of lease and delivery of possession (IC 32-31-3-12); no interest payment obligation.

Who the law applies to

All residential tenancies statewide; IC 32-31-3 covers deposit return (45 days after lease termination and delivery of possession) and itemization, no interest.

Cities in Indiana that require interest

No city-level interest requirement surfaced for Indianapolis or other Indiana cities; searches found no local interest ordinances.

States that do require deposit interest

Indiana 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 | Indiana Code § 32-31-3 (Security Deposits), esp. IC 32-31-3-12 | | Official text | iga.in.gov | | Last verified | 2026-10-28 |

Cross-checked against: SparkRental Indiana landlord-tenant guide (confirms no interest requirement; IC 32-31-3 return rules), iPropertyManagement - Indiana landlord tenant rights (45-day return, no interest).

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 Indiana require landlords to pay interest on security deposits?

No. Indiana law does not mandate interest; whatever the lease says governs. No city-level interest requirement surfaced for Indianapolis or other Indiana cities; searches found no local interest ordinances.

How is deposit interest calculated in Indiana?

Indiana does not require landlords to pay interest on security deposits; IC 32-31-3 governs deposits (no cap on amount, 45-day return with itemized deductions) and contains no interest mandate. The calculator at the top of this page reflects Indiana's rules where a numeric value exists.

When do I get the interest?

N/a - deposit or itemized damage list due within 45 days after termination of lease and delivery of possession (IC 32-31-3-12); no interest payment obligation.

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 Indiana lease promises interest, that promise is enforceable as a contract even though no statute mandates it.

Independent second source · 2026-10-28