deposit-interest

Security Deposit Interest in South Dakota: No State Requirement (2026)

South Dakota requires no interest on security deposits — SDCL §43-32-6.1 caps residential deposits at one month's rent (larger by mutual agreemen… Calculator, statute citation, Last Verified date o

Rule verified: 2026-10-28

Quick answer

No — South Dakota law does not require landlords to pay interest on security deposits. South Dakota requires no interest on security deposits — SDCL §43-32-6.1 caps residential deposits at one month's rent (larger by mutual agreement) and §43-32-24 requires return within 14 days; no interest provision exists in the chapter. The rule comes from S.D. Codified Laws §43-32-6.1 (maximum deposit), §43-32-24 (return and accounting). State statute (official text) · 2026-10-28

Calculator pre-loaded with this state:

State pre-filled: South Dakota — rule applied per S.D. Codified Laws §43-32-6.1 (maximum deposit), §43-32-24 (return and accounting). Switch the state if your property is elsewhere.

StateSecurity deposit ($)Tenancy startTenancy end

What South Dakota law does — and does not — require

South Dakota has no statewide statute requiring interest on security deposits. South Dakota requires no interest on security deposits — SDCL §43-32-6.1 caps residential deposits at one month's rent (larger by mutual agreement) and §43-32-24 requires return within 14 days; no interest provision exists in the chapter.

The statute that governs deposits in South Dakota, S.D. Codified Laws §43-32-6.1 (maximum deposit), §43-32-24 (return and accounting), 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. Return within 14 days after termination of tenancy and receipt of the tenant's forwarding address, with itemized accounting of deductions (§43-32-24).

Who the law applies to

Residential premises; deposit capped at one month's rent unless the parties agree in writing to a larger deposit.

States that do require deposit interest

South Dakota 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 | S.D. Codified Laws §43-32-6.1 (maximum deposit), §43-32-24 (return and accounting) | | Official text | sdlegislature.gov | | Last verified | 2026-10-28 |

Cross-checked against: Justia — S.D. Codified Laws §43-32-6.1 (2024) 'Maximum security deposit for residential premises--Larger deposit by mutual agreement', South Dakota landlord-tenant law guides (Justia/FindLaw directory, search-level, concordant: no interest requirement).

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 South Dakota require landlords to pay interest on security deposits?

No. South Dakota law does not mandate interest; whatever the lease says governs. South Dakota requires no interest on security deposits — SDCL §43-32-6.1 caps residential deposits at one month's rent (larger by mutual agreement) and §43-32-24 requires return within 14 days; no interest provision exists in the chapter.

How is deposit interest calculated in South Dakota?

South Dakota requires no interest on security deposits — SDCL §43-32-6.1 caps residential deposits at one month's rent (larger by mutual agreement) and §43-32-24 requires return within 14 days; no interest provision exists in the chapter. The calculator at the top of this page reflects South Dakota's rules where a numeric value exists.

When do I get the interest?

Return within 14 days after termination of tenancy and receipt of the tenant's forwarding address, with itemized accounting of deductions (§43-32-24).

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

Independent second source · 2026-10-28