As a tenant, you might have this question in mind: Do you get interest on security deposit? The question of whether a tenant receives interest on their security deposit hinges largely on the terms of the lease agreement rather than a blanket national requirement. According to Model Tenancy Act, 2021 (MTA) guidance, the act does not mandate interest payments on security deposits for residential tenancies.
Do You Get Interest on Your Rent Deposit?
Under most existing rent control or tenancy laws across various states, landlords are not legally obliged to pay interest on deposits unless the rental contract explicitly includes such a clause.
What does this mean practically? If your lease states that the security deposit will accrue interest at a specified rate, then the landlord must honour that term. Otherwise, the absence of a statutory mandate means they aren’t required to pay.
Additionally, while the MTA and related guides focus on caps for deposit amounts and refund timelines, they are silent on interest as a statutory right.
From a tenant’s perspective, this underscores the importance of carefully reviewing the rental agreement before signing. Ensure that any promise of interest on the deposit is clearly included, with details of the rate, calculation, and timing of payment.
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Do You Get Interest on Security Deposit?
pragati
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2025-11-12T06:45:22+00:00 2025-11-12T06:45:25+00:00Comment
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