DC security deposit interest rules in 2026: the current rate, where the deposit must sit, and how to pay interest correctly.
DC pegs security-deposit interest to the statement savings rate of the bank actually holding the deposit, checked each January 1 and July 1 (14 DCMR 311) — there is no single citywide rate. At major banks that has run roughly 0.18% annualized in early 2026, but your number is whatever your bank posts. Deposits must sit in a DC-located interest-bearing account, and interest is paid to the tenant at lease end or annually if the lease specifies.
No. It applies to every residential rental in DC.
Only ordinary-wear-exclusive damages with itemized written notice within 45 days of move-out.
The deposit transfers with the building. You inherit the obligation to pay accrued interest from the date the tenant paid it.
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