Georgia Security Deposit Interest Rules

Does Georgia require interest on security deposits?

No. Georgia is one of about 36 states that do not require landlords to pay interest on residential security deposits. Georgia's deposit rules are in O.C.G.A. Title 44, Chapter 7 and cover the 30-day return deadline, itemized deduction requirements, and bad-faith penalties (up to 3x), but do not impose an interest obligation.

Local Georgia ordinances

Atlanta, Savannah, Augusta, and other Georgia cities do not require deposit interest under local ordinances. The state framework is uniform statewide.

Georgia deposit-holding requirements

Georgia requires landlords with 10 or more rental units to hold deposits in a separate escrow account at a state or federally chartered banking institution. Smaller landlords (under 10 units) may commingle deposits or post a surety bond. The escrow account requirement does not generate mandatory interest for the tenant.

Worked example: calculating deposit interest in Georgia

You hold a $2,000 security deposit for a tenant who has lived in your Georgia rental for 2 years. Georgia does not require interest at the state level, so the interest owed is $0.00. You return the full $2,000 (minus any legitimate deductions) within the 30-day return window.

If you manage 10 or more units, the deposit must be in a separate escrow account at a state or federally chartered bank. That account may or may not earn interest, but any interest earned belongs to the landlord by default.

Landlords with fewer than 10 units may commingle deposits with operating funds or post a surety bond.

What experienced landlords do differently

• Open a dedicated interest-bearing account before collecting your first deposit. Commingling deposits with operating funds is a common violation that can void your right to any deductions.
• Send an annual interest statement even if the amount is small ($5-15/year on a typical deposit). The cost of a stamp is trivial compared to the penalty for noncompliance.
• Track each deposit in its own line item. If you manage multiple units, a simple spreadsheet with deposit date, amount, account number, and interest paid keeps you audit-ready.

Related Georgia compliance tools

Landlords in Georgia deal with more than just deposit interest. These free calculators cover the other compliance deadlines you need to track:

• Georgia Eviction Timeline Estimator — Estimate the full eviction process from notice to possession
• Georgia Maximum Late Fee Calculator — Calculate the highest late fee your lease can enforce
• Georgia Rent Increase Notice Calculator — Find the required notice period for your planned increase
• Georgia Security Deposit Return Deadline — Know exactly when the deposit must be returned or itemized

See all property management tools for investment, financing, and operations calculators.

Frequently asked questions about Georgia deposit interest

What if I forgot to put the deposit in a separate account?

Fix it immediately: open a compliant account and deposit the funds. Going forward, document the correction. In some states, failure to use a proper account voids your right to claim deductions from the deposit. The sooner you correct, the better your legal position if the issue comes up.

Do Georgia cities require deposit interest?

No. Atlanta, Savannah, Augusta, and other Georgia cities follow state law.

Do Georgia landlords need a separate deposit account?

Yes for landlords with 10 or more units. Smaller landlords may commingle deposits or post a surety bond.

What is the Georgia deposit return rule?

30 days from the date the tenant vacates and provides a forwarding address, with up to 3x bad-faith penalty (O.C.G.A. § 44-7-34, § 44-7-35).

If a Georgia landlord earns interest on the deposit, who gets it?

Default is the landlord. The state law does not require crediting interest to the tenant. Some landlords voluntarily credit interest as a tenant goodwill measure.