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Interest computation on return of partial deposit

In MN, law requires 1% simple interest for tenant's deposit. Our tenant's deposit was $1500 but we withheld $300 for damages. Is the interest due the tenant based on the initial $1500 ($30) or the actual returned deposit $1200 ($24)?  Thank you for your help.
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They get the full interest. It is their money you are holding on to and all of it is collecting interest the whole time. Its not until they move-out and you deduct for the damages does the money become yours. So $1500 at 1% earns around 150 the first year and 151.50 the second.(compound interest). So the total in the account would 1531.50. You subtract the $300 for damages and they get 1231.50 back.
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