Do I have to pay interest on a security deposit in PA?

marcus_4plexSep 30, 2026

Conversation starter

One of my tenants has been with me almost two years. A friend told me I owe her interest on her deposit after two years. Is that true?

3 replies

  1. jr_lancasterSep 30, 2026

    Yes, in PA. After a tenant has been there two years, a deposit over $100 has to earn interest, and the tenant gets that interest each year. You can keep 1% as a fee for handling it.

  2. ben_spreadsheetsSep 30, 2026

    The interest is small at most banks. The bigger issue is keeping the money in a separate account so it's not mixed with your own.

  3. marcus_4plex AskerSep 30, 2026

    I have it in my regular business account right now. Sounds like I need to fix that first.

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