deposit-interest

Security Deposit Interest in Ohio: 5% per annum (2026)

Ohio requires landlords to pay 5% per annum interest on the portion of a security deposit exceeding $50 or one month's periodic rent (whichever i… Calculator, statute citation, Last Verified date o

Rule verified: 2026-10-28

Quick answer

Yes — Ohio requires landlords to pay interest on qualifying security deposits. Ohio requires landlords to pay 5% per annum interest on the portion of a security deposit exceeding $50 or one month's periodic rent (whichever is greater), if the tenant remains 6 months or more; interest is computed and paid annually. The rule comes from Ohio Rev. Code § 5321.16(A) (return provisions in § 5321.16(B)). State statute (official text) · 2026-10-28

Calculator pre-loaded with this state:

State pre-filled: Ohio — rule applied per Ohio Rev. Code § 5321.16(A) (return provisions in § 5321.16(B)). Switch the state if your property is elsewhere.

StateSecurity deposit ($)Tenancy startTenancy end

The current rate in Ohio

Ohio sets a statutory rate of 5% per annum. Interest applies only to the excess over $50 or one month's periodic rent (whichever is greater); tenant must remain in possession for six months or more before interest is owed. The statute fixes this rate directly — it does not float with what a bank happens to pay.

How interest must be paid

Simple annual interest; statute says interest 'shall bear interest on the excess at the rate of five per cent per annum' with no compounding mentioned. Computed and paid annually by the landlord to the tenant (on the lease anniversary); at termination the remaining deposit and accrued interest are returned within 30 days (shorter 14-day window applies on sale/transfer of the property per secondary summaries).

Who the law applies to

All residential rentals statewide; triggered when the security deposit exceeds $50 or one month's periodic rent (whichever is greater), and tenant has occupied for at least 6 months.

Cities that add their own rules

State statute governs Columbus, Cleveland and Cincinnati directly - the state interest duty applies everywhere in Ohio, and no divergent city-level interest rules were needed/identified.

How Ohio compares in the Midwest

Ohio sets the highest fixed statutory rate among the Midwest states that require interest:

State	Rate	Rule
Illinois	0.01% (2025 announced rate; formula-based, near-zero in recent years)	interest required
Indiana	—	no statewide requirement
Iowa	—	no statewide requirement
Kansas	—	no statewide requirement
Kentucky	—	no statewide requirement
Michigan	—	no statewide requirement
Minnesota	1% per annum	interest required
Missouri	—	no statewide requirement
Nebraska	—	no statewide requirement
North Dakota	accrued interest (no statutory minimum rate located)	interest required
Ohio	5% per annum	interest required
South Dakota	—	no statewide requirement
Wisconsin	—	no statewide requirement

The statute behind it

| Field | Value | | --- | --- | --- | | Citation | Ohio Rev. Code § 5321.16(A) (return provisions in § 5321.16(B)) | | Official text | codes.ohio.gov | | Last verified | 2026-10-28 |

Cross-checked against: Baselane - Ohio security deposit guide (confirms 5% annually on excess).

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 Ohio require landlords to pay interest on security deposits?

Yes. Under Ohio Rev. Code § 5321.16(A) (return provisions in § 5321.16(B)), qualifying landlords in Ohio must pay interest — currently 5% per annum. All residential rentals statewide; triggered when the security deposit exceeds $50 or one month's periodic rent (whichever is greater), and tenant has occupied for at least 6 months.

How is deposit interest calculated in Ohio?

At 5% per annum. Simple annual interest; statute says interest 'shall bear interest on the excess at the rate of five per cent per annum' with no compounding mentioned. The calculator at the top of this page applies exactly this rule to your deposit amount and dates.

When do I get the interest?

Computed and paid annually by the landlord to the tenant (on the lease anniversary); at termination the remaining deposit and accrued interest are returned within 30 days (shorter 14-day window applies on sale/transfer of the property per secondary summaries).

Independent second source · 2026-10-28