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Washington Security Deposit Interest Calculator & Escrow Rules

Verified Primary Statute: RCW 59.18.270 · Last Checked: Spot a law update? Report it
$
Washington Interest StatusNo Statutory Interest
Net Interest Owed to Tenant:

$0.00

Under RCW 59.18.270, landlords in Washington are not statutorily required to pay interest on security deposits unless expressly promised in the written lease.

Effective Annual Interest Rate:0.00% (Not required by state statute)
Gross Accrued Interest:$0.00
Governing Authority:RCW 59.18.270

Washington Deposit Interest Laws at a Glance (RCW 59.18.270)

State law does not mandate interest payments; deposit is returned without interest unless specified in lease.

Statutory Interest Mandate Not required by state statute (lease controls)
Statutory Interest Rate 0.00% (No statutory requirement)
Minimum Tenancy Duration No minimum tenancy required
Escrow Account & Banking Rule Trust account or financial escrow rules apply, but interest accrued belongs to the landlord unless lease states otherwise.
Governing Statute RCW 59.18.270 ↗

Related Washington Rental Compliance Tools

Key Washington Statutory Nuances & Escrow Case Law

  • No Statutory Interest Mandate: Under RCW 59.18.270, residential landlords in Washington are not required to pay interest on security deposits.
  • Lease Terms Control: A landlord is only obligated to pay interest if a specific clause in the signed rental agreement expressly promises it.
  • Escrow Account Distinction: While state law may regulate where deposit funds are held to prevent commingling, accrued interest is not transferred to the tenant.
Worked Statutory Calculation

Washington Standard Tenancy Deposit Review

Deposit Amount:

$2,000

Tenancy Months:

24 months

Net Statutory Interest:

$0.00

Under RCW 59.18.270, landlords in Washington are not statutorily required to pay interest on tenant security deposits. On a $2,000 deposit held for 24 months, the statutory interest owed is $0.00 unless the written lease specifically provides otherwise.

Washington Security Deposit Interest FAQs

Does Washington law require landlords to pay interest on security deposits?

No. Under RCW 59.18.270, there is no state statutory requirement in Washington for residential landlords to pay interest on security deposits.

Can a tenant in Washington negotiate deposit interest in the lease?

Yes. While state law does not mandate it, landlords and tenants are free to include a contractual interest provision in their written lease agreement.

Does a landlord have to keep my deposit in a separate bank account in Washington?

State escrow laws regulate trust accounting and protect funds from commingling, but any interest generated belongs to the landlord under RCW 59.18.270.

What happens if a Washington lease promises interest but the landlord fails to pay?

If interest is explicitly specified in a signed lease agreement, failure to pay constitutes a breach of contract enforceable in Small Claims Court.