Security Deposit Interest in Washington: No State Requirement (2026)
Washington does not require landlords to pay security deposit interest to tenants — under RCW 59.18.270 the landlord is entitled to interest earn… Calculator, statute citation, Last Verified date o
Quick answer
No — Washington law does not require landlords to pay interest on security deposits. Washington does not require landlords to pay security deposit interest to tenants — under RCW 59.18.270 the landlord is entitled to interest earned on the required trust account unless the written rental agreement says otherwise; Seattle requires a separate interest-bearing account plus written disclosure but no payment mandate. The rule comes from RCW 59.18.270 (Security deposits — trust account; interest default to landlord). State statute (official text) · 2026-10-28
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What Washington law does — and does not — require
Washington has no statewide statute requiring interest on security deposits. Washington does not require landlords to pay security deposit interest to tenants — under RCW 59.18.270 the landlord is entitled to interest earned on the required trust account unless the written rental agreement says otherwise; Seattle requires a separate interest-bearing account plus written disclosure but no payment mandate.
The statute that governs deposits in Washington, RCW 59.18.270 (Security deposits — trust account; interest default to landlord), 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 — interest on the trust account belongs to the landlord by default. No interest payment to tenant required by default. Deposit itself returned within statutory timelines (21 days per RCW 59.18.280) after termination.
Who the law applies to
All residential rentals. Statewide: deposit must be placed in a trust account at a bank, escrow agent, or licensed property manager, with written receipt and notice of the depository. Seattle (SMC ch. 7.24): deposits held in a separate interest-bearing account; rental agreement must disclose deposit terms and the financial institution.
Cities in Washington that require interest
Seattle (SMC ch. 7.24, esp. 7.24.030): deposits must be kept in a separate interest-bearing bank account; written rental agreement must state deposit terms and the depository; deposits + nonrefundable fees capped at one month's rent; installment payment rights. Tacoma (TMC 1.95.040): deposit cap 25% of first full month's rent, installment mandates — no interest requirement found. Bellingham: no interest requirement found at search level.
States that do require deposit interest
Washington 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 | RCW 59.18.270 (Security deposits — trust account; interest default to landlord) | | Official text | app.leg.wa.gov | | Last verified | 2026-10-28 |
⚠️ SMC 7.24.030 exact statutory text not opened (Municode and Seattle code portals bot-blocked this session); the Seattle interest-bearing-account requirement rests on converging secondary summaries plus the official city guidance page Tacoma TMC 1.95 PDF and Bellingham code not opened directly; their 'no interest mandate' finding is search-level only
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 Washington require landlords to pay interest on security deposits?
No. Washington law does not mandate interest; whatever the lease says governs. Seattle (SMC ch. 7.24, esp. 7.24.030): deposits must be kept in a separate interest-bearing bank account; written rental agreement must state deposit terms and the depository; deposits + nonrefundable fees capped at one month's rent; installment payment rights. Tacoma (TMC 1.95.040): deposit cap 25% of first full month's rent, installment mandates — no interest requirement found. Bellingham: no interest requirement found at search level.
How is deposit interest calculated in Washington?
RCW 59.18.270: 'Unless otherwise agreed in writing, the landlord shall be entitled to receipt of interest paid on such trust account deposits.' The calculator at the top of this page reflects Washington's rules where a numeric value exists.
When do I get the interest?
No interest payment to tenant required by default. Deposit itself returned within statutory timelines (21 days per RCW 59.18.280) after termination.
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 Washington lease promises interest, that promise is enforceable as a contract even though no statute mandates it.
Independent second source · 2026-10-28Related guides
- All states: security deposit interest by state · rent increase rules by state
- Tools: deposit interest calculator · rent increase calculator
- Neighboring states: Alaska · California
- Also moving? Read Washington rent increase rules.
This page is information, not legal advice — see the full disclaimer.