Florida Security Deposit Interest Rules

Does Florida require interest on security deposits?

No, not at the state level. Florida does not require landlords to pay interest on residential security deposits as a default. Under Fla. Stat. § 83.49(1), landlords have three permitted methods of holding the deposit: (1) separate non-interest-bearing account, (2) separate interest-bearing account, or (3) surety bond. Only method (2) generates interest, and the lease terms govern whether the interest is paid to the tenant.

When Florida deposits do generate interest

If a Florida landlord chooses method (2) and holds the deposit in a separate interest-bearing account, the lease must specify how the interest is handled: paid to the tenant annually, applied to the next month's rent, or retained by the landlord. If the lease is silent, the default is that interest is paid to the tenant annually. Most Florida landlords use method (1) or (3) to avoid the administrative burden.

Local Florida ordinances

Florida state law (Fla. Stat. § 125.0103) preempts most local landlord-tenant ordinances. Major Florida cities (Miami, Tampa, Orlando, Jacksonville) generally do not require deposit interest. The state framework is uniform on this point.

How to use this calculator

Enter deposit amount and months held. The calculator confirms that Florida does not require interest at the state level. If your lease specifies an interest-bearing account method, refer to the lease for the specific rate and treatment.

Frequently asked questions about Florida deposit interest

Does Florida require landlords to pay interest on security deposits?

No, not at the state level. Florida is one of about 36 states that do not require deposit interest statewide. Florida law gives landlords three options for holding deposits (Fla. Stat. § 83.49(1)), and only one (separate interest-bearing account) generates interest at all.

Do Florida cities require deposit interest?

Generally no. Florida state law preempts most local landlord-tenant ordinances, and major Florida cities (Miami, Tampa, Orlando, Jacksonville) do not require deposit interest. The framework is uniform statewide.

What are the three permitted Florida deposit-holding methods?

Under Fla. Stat. § 83.49(1): separate non-interest-bearing account at a Florida bank; separate interest-bearing account; or surety bond. The method must be disclosed to the tenant in writing within 30 days of receiving the deposit.

If a Florida landlord uses an interest-bearing account, who gets the interest?

Depends on the lease terms. The lease must specify: paid to the tenant annually, applied to the next month's rent, or retained by the landlord. If the lease is silent, the default is annual payment to the tenant. Most Florida landlords use the non-interest-bearing or surety bond option to avoid the administrative burden.

What happens if a Florida landlord does not disclose the deposit-holding method?

The landlord forfeits the right to retain any portion of the deposit. The 30-day disclosure requirement is strictly enforced under Fla. Stat. § 83.49(2).