Tenant waives interest on security deposit
Some states require landlords to pay interest on deposits. A waiver may be unenforceable — check local law.
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What it actually means
In states that require interest (MA, NJ, CT, and others), you're owed a small annual payment on your deposit.
A lease clause waiving interest doesn't override state law. The landlord still owes it.
What it looks like in a lease
"Tenant waives any right to interest on the Security Deposit."
What to watch for
- State interest requirements
- Local ordinances (some cities add requirements)
How to negotiate it
In interest-required states, cite the law. Otherwise, this is a minor issue.
When it crosses into a red flag
- In interest-required state
Frequently asked questions
How much interest am I owed?
Usually the passbook savings rate — around 0.5–2% annually. Small, but it's yours.
Want to know how this works in your specific state? Read the Security deposit laws guide, or pick your state from the guide index.
Related clauses
General information, not legal advice. Clauses are interpreted differently across states and courts. For a binding interpretation of your specific lease, consult a licensed attorney in your state.
