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Last updated: April 2026Researched by DepositHawk Research Team

Alabama Does Not Require Deposit Interest

Alabama landlords are not required to pay interest on your security deposit. But that does not mean they can do whatever they want with it.

Alabama does not require landlords to pay interest on security deposits. However, landlords must return the deposit within 35 days of move-out under Ala. Code § 35-9A-201.

Ala. Code § 35-9A-201

Your Rights

What Your Alabama Landlord Does Owe You

Interest or not, Alabama law gives you real protections on your security deposit:

  • 35-day return deadline. Your landlord has 35 days after you move out to return your deposit or provide an accounting of deductions.
  • Itemized statement required. Your landlord cannot just keep part of your deposit — they must provide a written, itemized list of every deduction and its amount within 35 days.
  • Penalties for violations. If your landlord misses the deadline or makes illegal deductions, Alabama courts can award you up to 2x the wrongfully withheld amount.

Alabama landlords must return security deposits within 35 days of move-out under Ala. Code § 35-9A-201. Violations can result in up to 2x the wrongfully withheld amount.

Ala. Code § 35-9A-201

Full State Law

Alabama Security Deposit Law — Full Breakdown

Return deadlines, allowed deductions, penalty multipliers, small claims limits — everything you need to know about Alabama deposit law is on one page. Read the full Alabama security deposit law breakdown.

Frequently Asked Questions

Frequently Asked Questions

Does Alabama require landlords to pay interest on security deposits?

No. Alabama does not require landlords to pay interest on security deposits. However, your landlord must still return your deposit within 35 days of move-out under Ala. Code § 35-9A-201.

What is my landlord required to do with my deposit in Alabama?

Your Alabama landlord must return your deposit within 35 days after you move out. They must provide an itemized statement listing any deductions. Failure to comply can result in penalties.

What happens if my Alabama landlord keeps my deposit?

If your landlord fails to return your deposit within 35 days, you can sue in small claims court for up to 2x the wrongfully withheld amount. Alabama small claims courts handle cases up to $8,000.

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DepositHawk is not a law firm and does not provide legal advice. Information and documents are for informational purposes only. No attorney-client relationship is created. Consult a licensed attorney for advice specific to your situation.