Washington maximum interest rate is the answer to “maximum interest rate allowed by law in Washington”. This guide gives the Washington figures in a dated table, explains in plain words what they mean, walks through the steps, and points to the official forms and free help.
The Washington maximum interest rate figures on this page were verified against a dated 50-state compilation and Washington sources as of October 2026; the statute named here is where to check them yourself.
Washington maximum interest rate at a Glance
| Legal rate when no rate is agreed | 12% per year in the absence of a written agreement |
| Maximum rate in a written contract | the higher of 12% or 4 points above the 26-week Treasury bill yield published by the Federal Reserve |
| Statute | RCW 19.52.020 |
In This Washington maximum interest rate Guide:
What the Washington Maximum Interest Rate Means
Usury means charging more interest than Washington law allows on a loan. The state sets two separate figures: a default “legal rate” that applies only when there is no written agreement on interest, and a higher ceiling on what a written contract may charge. A loan that charges more than the contract ceiling is usurious, but under RCW 19.52.030 the contract is not void.
The Washington maximum interest rate Figures
| Rule | Bonus Bank Daily verified figure |
|---|---|
| Legal rate when no rate is agreed | 12% per year in the absence of a written agreementcompilation / agency — verified Oct 2026 |
| Maximum rate in a written contract | the higher of 12% or 4 points above the 26-week Treasury bill yield published by the Federal Reservecompilation / agency — verified Oct 2026 |
| Statute | RCW 19.52.020compilation / agency — verified Oct 2026 |
The Washington maximum interest rate figures on this page were verified against a dated 50-state compilation and Washington sources as of October 2026; the statute named here is where to check them yourself.
Who the Washington Maximum Interest Rate Applies To
The cap mainly covers personal, family and household loans made by lenders that no other law exempts, such as private lenders and individuals. Loans made mainly for business, commercial, investment or farm purposes generally fall outside it under RCW 19.52.080, but consumer loans of any amount do not. Banks and credit unions can charge the rates that federal “most favored lender” rules allow (12 U.S.C. 85 and RCW 30.04.025).
Lenders licensed under the Consumer Loan Act follow their own limit of 25% per year in simple interest (RCW 31.04.105; WAC 208-620). Confirm with the statute, the court clerk or an attorney.
Credit Cards and the Washington Maximum Interest Rate
Most credit cards come from national banks. Federal law lets those banks charge the interest rate allowed in their home state, even when the cardholder lives in Washington. A card rate above the Washington cap is therefore usually legal. Washington law also gives state-chartered banks and credit unions the same “most favored lender” treatment, according to the Department of Financial Institutions.
What Happens When a Lender Breaks the Washington Maximum Interest Rate
Under RCW 19.52.030 the lender can generally collect only the principal minus the interest charged. If interest has already been paid, the lender can collect the principal minus twice the interest paid and minus any unpaid interest. The borrower may also recover court costs, reasonable attorney fees and anything paid above what the lender may keep.
Under RCW 19.52.036 a usurious loan also violates the Consumer Protection Act (RCW 19.86), which allows treble damages up to $10,000. Criminal loan-sharking (“extortionate extension of credit”) is covered separately in RCW 9A.82. An annual rate above 45% is one of several facts that together can count as evidence of it.
How to Check a Loan Against the Washington Maximum Interest Rate
1) Find the APR or interest rate in the loan contract or Truth in Lending disclosure. 2) Work out who the lender is: a bank, a credit union, a lender licensed by the Department of Financial Institutions, or a private party. 3) Check whether the loan was for personal or business use.
4) Look up the current contract ceiling, which the Washington State Treasurer publishes each month, and compare it with the rate on the date the loan was made. 5) Confirm with the statute, the court clerk or an attorney.
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Where to Report a Loan Above the Washington Maximum Interest Rate
The Washington State Department of Financial Institutions (dfi.wa.gov) licenses consumer lenders and state-chartered banks and credit unions, and takes complaints about them. You may also file a complaint with the Consumer Financial Protection Bureau at consumerfinance.gov/complaint.
Common Mistakes With Washington maximum interest rate
The most common mistake is missing a deadline: court and creditor deadlines run whether or not you have read the papers, and a missed one usually cannot be undone. The second is relying on an old article or a friend’s experience in another state — the rules on this page differ from state to state and change often, which is why every figure here is dated.
The third is not keeping copies: every letter, form, receipt and bank statement may matter later, so keep them together and note the date you received each one.
Free Help With Washington maximum interest rate in Washington
You do not have to handle this alone or pay to get answers. The Washington court self-help center explains the forms and the steps, and court clerks can tell you where and how to file, although they cannot give legal advice.
Legal aid organizations represent many people at no cost when income is limited, and the Washington bar’s lawyer referral service can connect you with a lawyer for a low-cost first consultation. The Consumer Financial Protection Bureau accepts complaints about lenders, banks and debt collectors nationwide.
How We Verify the Washington maximum interest rate Figures
Every figure in the table above comes from our 50-state data file, built by reading the Washington statute or an official compilation of it, and each one carries the month we last checked it. Our writers do not change those figures; they explain them. When the law changes, the figure is updated and the date moves.
If something on this page no longer matches the statute, the statute controls — and we want to hear about it.
Washington’s usury chapter does not apply to interest, penalties or costs on late property taxes (RCW 19.52.140). Retail installment sales, such as store financing, are governed by RCW 63.14 rather than the general usury cap. When a loan is made to a corporation or other business, the borrower generally cannot use the usury remedy unless a natural person or that person’s property is also liable on it.
Next rung: the Washington payday loan page covers the short-term loans that have their own caps.
Washington — the bottom line
- Washington maximum interest rate rules set two numbers — the legal rate and the written-contract cap — both in the table above.
- Many lenders sit outside the Washington maximum interest rate cap by license or charter, so check which rule covers your loan.
- If a loan breaks the Washington maximum interest rate rules, keep the agreement and report it to the state regulator.
Washington Maximum Interest Rate FAQ
What is the maximum interest rate allowed by law in Washington?
Without an agreement: 12% per year in the absence of a written agreement. In a written contract: the higher of 12% or 4 points above the 26-week Treasury bill yield published by the Federal Reserve.
Official Washington Sources & Resources
- Statute and the Conference of State Bank Supervisors 50-state usury survey (verified by each state regulator) — maximum legal interest rate: https://www.csbs.org/50-state-survey-consumer-finance-laws
- Statute and the Conference of State Bank Supervisors 50-state usury survey (verified by each state regulator) — maximum legal interest rate: https://facts.csbs.org/consumer-finance-law/dev
- Washington statute / opinion: https://app.leg.wa.gov/RCW/default.aspx?cite=19.52
- Washington State Department of Financial Institutions – Interest Rates and Usury: https://dfi.wa.gov/node/26514
- Consumer Financial Protection Bureau: consumerfinance.gov
This Washington maximum interest rate guide was last verified against official Washington sources in October 2026. Rules change — confirm the current rule with the statute or a licensed attorney.
More Washington Money Rights Guides
Disclaimer: This guide is general information, not legal or financial advice. Bonus Bank Daily is an independent educational resource — not a law firm, not a bank, not a debt collector and not a government agency. Judgment, levy, interest-rate and debt rules change — every figure here carries the date we verified it.
Confirm the current rule with the statute, the court clerk or a licensed attorney in your state before you act.