North Dakota security deposit interest
North Dakota requires deposits to be kept in a federally insured interest-bearing account at a bank in the state. If the tenant stays nine months or more, the interest earned belongs to the tenant and is paid out with the deposit within 30 days of move-out. Shorter tenancies earn nothing.
Print this page for a dated statement showing the rate applied to each year and the statute.
How North Dakota deposit interest works
The deposit is normally capped at one month’s rent. A pet deposit may add the greater of $2,500 or two months’ rent, and a landlord may take up to two months from a tenant with a felony conviction or a prior judgment for breaking a lease.
The rules in brief
- Federally insured interest-bearing account in North Dakota required.
- Interest belongs to the tenant after nine months of occupancy.
- Return within 30 days with itemised deductions; treble damages for bad-faith withholding.
Set by the holding account. Whatever the account earns.
Worked examples: one year held
Assuming an account rate of 0.5%. Enter the real rate from the landlord’s notice in the calculator.
| Deposit | Interest-bearing portion | Interest owed |
|---|---|---|
| $1,000.00 | $1,000.00 | $5.00 |
| $1,500.00 | $1,500.00 | $7.50 |
| $2,500.00 | $2,500.00 | $12.50 |
Other North Dakota deposit rules
- Maximum deposit: One month's rent (up to two months' rent for a tenant with a felony conviction or a prior judgment for violating a rental agreement).
- Return deadline: Itemization and refund within 30 days after termination of the lease and delivery of possession.
- Late fees: No statutory cap or grace period for residential late fees in North Dakota; the lease controls (general reasonableness/penalty doctrine applies).
Full page: North Dakota landlord and tenant rules.
Frequently asked questions
Does a North Dakota landlord have to pay deposit interest?
Yes, if the tenant occupies the unit for nine months or more. The interest is whatever the required bank account earned.
How is the interest paid?
With the deposit, within 30 days after the tenancy ends.