Free MA landlord tool

Massachusetts Security Deposit Interest Calculator

Estimate the statutory interest owed on a Massachusetts security deposit under MGL c.186 §15B(3)(b). Updates as you type.

Your deposit

Capped at 5% by statute. Enter your account’s actual rate if lower.

Result

Days held
730

2.00 years

Effective interest rate
5.00%

Lesser of 5% or bank rate

Annual interest
$75.00

Owed each anniversary

Total interest owed to date
$150.00

Linear accrual through today

How this is calculated

Formula. totalInterest = deposit × min(0.05, bankRate) × daysHeld / 365, applied only when daysHeld ≥ 365.

Statutory basis. MGL c.186 §15B(3)(b) requires interest at 5% per year, or the lesser amount actually paid by the bank, for any security deposit held for one year or longer. Interest accrues from the first day of the tenancy and is paid annually. If the tenancy ends before an anniversary, all accrued interest is owed within 30 days of termination.

Limitations. This calculator estimates only the interest amount. The full compliance picture also requires a separate interest-bearing account in a Massachusetts bank (§15B(3)(a)), a 30-day bank receipt to the tenant, a 10-day statement of condition (§15B(2)(c)), and 30-day return at move-out (§15B(4)).

Tenvale tracks this automatically

Deposits, escrow bank, and annual interest live in one place — so the 30-day clocks and anniversary statements don’t slip.

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