Quick answer: Minnesota’s deposit statute does not set a statewide maximum for a security deposit, but any deposit that secures the lease must be held for the tenant, bears 1% simple interest and must be returned within three weeks after the tenancy ends. A city may add its own rules, so check the local ordinance.
This Minnesota security deposit limit and interest calculator applies Minn. Stat. 504B.178. Because there is no cap to test, it shows what the deposit is worth in months of rent and the interest the landlord owes, from the first day of the month after payment to the month it returns the money.
Minnesota security deposit rules at a glance
| Rule | What Minnesota says |
|---|---|
| Statewide maximum | None in the deposit statute (Minn. Stat. 504B.178) |
| What it covers | A deposit whose function is to secure the lease, other than advance rent (subd. 1) |
| Interest | 1% a year, simple, from the month after payment (subd. 2) |
| Held for the tenant | The deposit is held by the landlord for the tenant (subd. 2) |
| Return | Within 3 weeks after the tenancy ends and the landlord has the address (subd. 3) |
| Bad faith | Punitive damages up to $500 per deposit (subd. 7) |
| Waiver | Void (subd. 10) |
| Late fees | Up to 8% of the overdue rent, only if agreed in writing (504B.177) |
How does the Minnesota deposit law work?
- No statewide cap, and the rules that still apply. See the maximum security deposit in Minnesota.
- Pet deposits and fees. See Minnesota pet deposits and fees.
- First month, last month, late fees and other up-front charges. See up-front charges when renting in Minnesota.
What does this deposit calculator check?
It counts the months from the first day of the month after the deposit was paid in full through the month the landlord returns it, multiplies the deposit by 1% a year for those months and drops interest under $1, as the statute says. It does not test a maximum because the statute has none. A deposit that is only an advance payment of rent is outside the section. The return deadline and the penalty are separate questions, and a landlord that does not pay the interest is in the same position as one that does not return the deposit. A tenant should ask the landlord how and when the interest will be paid and keep that answer with the lease: see the Minnesota security deposit return deadline calculator.
Examples of the Minnesota deposit interest
| Deposit | Paid and returned | Interest | Why |
|---|---|---|---|
| $1,200 | Paid Jan 15, 2025; returned Nov 2026 | $22.00 | 22 months at 1% |
| $1,200 | Paid Jun 1, 2026; returned Nov 2026 | $5.00 | Interest from Jul 1: 5 months |
| $600 | Paid Oct 20, 2026; returned Oct 2026 | $0.00 | Interest starts Nov 1 |
| $2,400 | Paid Mar 3, 2025; returned Nov 2026 | $40.00 | 20 months at 1% |
These examples show the arithmetic. They are not statements about a particular lease. The interest is small on a typical deposit, so the point of tracking it is to check that the landlord paid it and to avoid the penalty for failing the return rules.
Related Minnesota landlord-tenant calculators
These four calculators cover the same tenancy from different angles. From here you can go to the Minnesota security deposit return deadline calculator for the date the landlord must refund or itemize the deposit, the Minnesota eviction notice calculator for the notice period before a lease can end and the Minnesota eviction timeline calculator for the earliest legal dates once an eviction case starts. Each one cites its own Minnesota statutes and shows only what the law says.
Frequently asked questions
What is the maximum security deposit in Minnesota?
The deposit statute sets no statewide maximum.
Does a Minnesota landlord owe interest on a deposit?
Yes, simple interest at 1% a year, from the first day of the month after the deposit was paid in full.
Does prepaid rent count as a deposit?
No. A deposit that is exclusively an advance payment of rent is outside the section.
Can a city limit the deposit?
Local rules may add requirements, so check your city.
Can a lease waive the interest or the return rules?
No. A waiver is void.
When must the deposit be returned?
Within three weeks after the tenancy ends and the landlord has the tenant’s mailing address.