Interest on Tenant Security Deposit

[John Deyrup]

I am a landlord in Massachusetts and I need to hold my tenants security deposit in an escrow. I have found several banks willing to do this, so that is not a problem.

My issue is that, I know that every year you are supposed to deliver any interest the account receives to a tenant but the banks I have talked to have said that they don’t let you deliver the interest unless the interest is >$10 which seems unlikely given the interest rate of the escrow account. Are there banks that will deliver the interest for you each year or is there some other work around?