Is the tenant owed 5 per year on the last month's rent (not security deposit) in MA? I didn't deposit the last month's rent in a interest b...

Question

Is the tenant owed 5% per year on the last month's rent (not security deposit) in MA?

I didn't deposit the last month's rent in a interest bearing account since banks are not giving interest anymore. So, do I owe the tenant 5% anyways?

Thanks.

Answer

i believe it is the interest provided by the bank

Answer

The law mandates that you place a tenant's security deposit into a separate interest-bearing account. I believe every bank offers at least one interest-bearing account option to its customers, even if interest rates are extremely low right now. If you did not place the tenant's money into an interest-bearing account, it would appear you must pay 5%.