deposit-interest

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

Kentucky does not require landlords to pay interest on security deposits; KRS 383.580 requires deposits to be kept in a separate (not necessarily… Calculator, statute citation, Last Verified date o

Rule verified: 2026-10-28

Quick answer

No — Kentucky law does not require landlords to pay interest on security deposits. Kentucky does not require landlords to pay interest on security deposits; KRS 383.580 requires deposits to be kept in a separate (not necessarily interest-bearing) account, with an itemized move-in damage list and 30-day return. The rule comes from Ky. Rev. Stat. § 383.580 (Security deposits). State statute (official text) · 2026-10-28

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State pre-filled: Kentucky — rule applied per Ky. Rev. Stat. § 383.580 (Security deposits). Switch the state if your property is elsewhere.

StateSecurity deposit ($)Tenancy startTenancy end

What Kentucky law does — and does not — require

Kentucky has no statewide statute requiring interest on security deposits. Kentucky does not require landlords to pay interest on security deposits; KRS 383.580 requires deposits to be kept in a separate (not necessarily interest-bearing) account, with an itemized move-in damage list and 30-day return.

The statute that governs deposits in Kentucky, Ky. Rev. Stat. § 383.580 (Security deposits), 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 deductions due within 30 days after termination of the lease; no interest payment obligation.

Who the law applies to

All landlords of residential property taking security deposits (KRS 383.580 applies statewide); no statutory cap on deposit amount; tenant must provide written forwarding address and request return for the 30-day deadline to run.

Cities in Kentucky that require interest

No interest ordinance found in Louisville or Lexington: both operate under Kentucky state law (URLTA adopted locally, but it adds no interest requirement); searches found no local deposit-interest requirement anywhere in Kentucky.

States that do require deposit interest

Kentucky 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 | Ky. Rev. Stat. § 383.580 (Security deposits) | | Official text | apps.legislature.ky.gov | | Last verified | 2026-10-28 |

Cross-checked against: Rentable - Kentucky security deposit guide (separate account, not interest-bearing; 30-day return).

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 Kentucky require landlords to pay interest on security deposits?

No. Kentucky law does not mandate interest; whatever the lease says governs. No interest ordinance found in Louisville or Lexington: both operate under Kentucky state law (URLTA adopted locally, but it adds no interest requirement); searches found no local deposit-interest requirement anywhere in Kentucky.

How is deposit interest calculated in Kentucky?

Kentucky does not require landlords to pay interest on security deposits; KRS 383.580 requires deposits to be kept in a separate (not necessarily interest-bearing) account, with an itemized move-in damage list and 30-day return. The calculator at the top of this page reflects Kentucky's rules where a numeric value exists.

When do I get the interest?

N/a - deposit or itemized deductions due within 30 days after termination of the lease; 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 Kentucky lease promises interest, that promise is enforceable as a contract even though no statute mandates it.

Independent second source · 2026-10-28