Tennessee Security Deposit Interest Calculator & Escrow Rules
$0.00
Under Tenn. Code Ann. § 66-28-301, landlords in Tennessee are not statutorily required to pay interest on security deposits unless expressly promised in the written lease.
Tennessee Deposit Interest Laws at a Glance (Tenn. Code Ann. § 66-28-301)
State law does not mandate interest payments; deposit is returned without interest unless specified in lease.
| Statutory Interest Mandate | Not required by state statute (lease controls) |
|---|---|
| Statutory Interest Rate | 0.00% (No statutory requirement) |
| Minimum Tenancy Duration | No minimum tenancy required |
| Escrow Account & Banking Rule | Trust account or financial escrow rules apply, but interest accrued belongs to the landlord unless lease states otherwise. |
| Governing Statute | Tenn. Code Ann. § 66-28-301 ↗ |
Related Tennessee Rental Compliance Tools
Tennessee Deposit Return Deadline Calculator
Calculate exact statutory refund dates, holiday rollovers, and bad-faith penalty multipliers.
Late Payment Caps →Tennessee Rent Late Fee & Grace Period Tool
Check mandatory statutory grace periods, percentage caps, and illegal overcharge remedies.
Key Tennessee Statutory Nuances & Escrow Case Law
- No Statutory Interest Mandate: Under Tenn. Code Ann. § 66-28-301, residential landlords in Tennessee are not required to pay interest on security deposits.
- Lease Terms Control: A landlord is only obligated to pay interest if a specific clause in the signed rental agreement expressly promises it.
- Escrow Account Distinction: While state law may regulate where deposit funds are held to prevent commingling, accrued interest is not transferred to the tenant.
Tennessee Standard Tenancy Deposit Review
$2,000
24 months
$0.00
Under Tenn. Code Ann. § 66-28-301, landlords in Tennessee are not statutorily required to pay interest on tenant security deposits. On a $2,000 deposit held for 24 months, the statutory interest owed is $0.00 unless the written lease specifically provides otherwise.
Tennessee Security Deposit Interest FAQs
Does Tennessee law require landlords to pay interest on security deposits?
No. Under Tenn. Code Ann. § 66-28-301, there is no state statutory requirement in Tennessee for residential landlords to pay interest on security deposits.
Can a tenant in Tennessee negotiate deposit interest in the lease?
Yes. While state law does not mandate it, landlords and tenants are free to include a contractual interest provision in their written lease agreement.
Does a landlord have to keep my deposit in a separate bank account in Tennessee?
State escrow laws regulate trust accounting and protect funds from commingling, but any interest generated belongs to the landlord under Tenn. Code Ann. § 66-28-301.
What happens if a Tennessee lease promises interest but the landlord fails to pay?
If interest is explicitly specified in a signed lease agreement, failure to pay constitutes a breach of contract enforceable in Small Claims Court.