Property Ownership

Under Pennsylvania law, what is the minimum interest rate on security deposits held in interest-bearing accounts?

A1%
BThe current rate available from FDIC-insured institutions, with interest paid to the tenant after 2 years✓ Correct
CPrime rate minus 2%
D5% flat rate guaranteed by the state

Explanation

Pennsylvania's Landlord-Tenant Act requires deposits over $100 to be held in interest-bearing accounts at rates equal to what is generally available from FDIC-insured institutions. After the tenant has occupied for 2 years, the accrued interest belongs to the tenant and must be paid annually.

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