Missouri law does not require Landlords to pay interest on security deposits. There is no statewide statute mandating interest payments, no minimum holding period that triggers interest, and no penalty for failing to pay interest.

While Missouri statewide law does not require security deposit interest, check applicable local ordinances. Kansas City and St. Louis have their own landlord-tenant rules, and local requirements can vary. Always verify with local authorities.

Instead of interest, Missouri's security deposit law focuses on:

See our Security Deposit Basics and Returning Security Deposit guides for full details.

Do I still need a separate bank account for the security deposit?

Missouri § 535.300 requires the deposit to be held in a federally insured institution (bank, credit union, etc.). A separate account is a best practice even if not explicitly required, because commingling security deposit funds with operating funds can create accounting problems and legal exposure.

What if a local ordinance requires interest?

Follow the local ordinance. Local rules can impose stricter requirements than state law. Check with local authorities or a Missouri attorney familiar with your city or county.

Security Deposit — Mo. Rev. Stat. § 535.300

⚖️ Disclaimer — This article is for general informational purposes only and should not be considered legal advice or a legal opinion on any specific case or situation. It does not create an attorney-client relationship. We make no guarantees as to accuracy, completeness, or changes in the law.