In short: interest is owed only if your landlord holds the deposit in an interest bearing account or under a surety bond. Then you get at least 75% of the account's average interest rate or 5% a year simple interest, whichever the landlord chooses, or 5% a year under a bond. If the deposit is in an account that pays no interest, none is owed.
Three ways a deposit can be held
| How it is held | Interest owed to you |
|---|---|
| Separate Florida bank account that pays no interest | None |
| Separate Florida bank account that pays interest | At least 75% of the account's annualized average rate, or 5% a year simple interest, the landlord's choice |
| Surety bond instead of a separate account | 5% a year simple interest |
Florida Statutes section 83.49(1). The same rules apply to advance rent, such as last month's rent paid when you sign the lease.
What it works out to
| A $2,000 deposit held | Interest a year |
|---|---|
| In an account with no interest | $0 |
| At 75% of an account paying 1% | $15 |
| At 5% simple interest, or under a bond | $100 |
An example only. The rate on an interest bearing account depends on the bank.
How to find out which applies to you
- Check your lease. Many Florida leases say where the deposit is held and whether interest is paid
- Landlords with five or more units must tell you in writing, in the lease or within 30 days of receiving the deposit, where it is held and whether you are entitled to interest. If they move it later, they must tell you within 30 days
- Landlords with fewer than five units do not have to give that notice. Ask in writing and keep the reply
When interest is paid
- At least once a year, paid to you directly or credited against the current month's rent
- When you move out, any interest still due comes back with the deposit, within 15 days if the landlord is keeping none of it
- No interest is owed if you wrongfully end the tenancy early. See moving out early
If the property is sold
When a rental is sold, or a new managing agent takes over, the deposit and any interest earned must be transferred to the new owner or agent with an accounting of what is held. Your right to the deposit and interest carries on with them.
Fee instead of a deposit
If you chose to pay a monthly fee instead of a security deposit under section 83.491, there is no deposit held for you, so no interest is owed.
Who these rules do not cover
Section 83.49 does not apply to hotel and motel stays, or where rent and deposits are set by a public body, such as public housing.
The interest is usually small. The bigger sum is the deposit itself: our Florida deposit guide covers getting it back, and a move out clean removes the most common reason for deductions.
This guide is general information, not legal advice. Laws change, and your lease may add terms. For advice on your situation, speak to a Florida attorney or the Legal Aid Society of Palm Beach County.