2020 Security Deposit Interest Rate
The CRRA has just been advised that the interest rate payable on Security deposits for 2020 is 0%.
The rate of interest to be paid on tenant security deposits by landlords, effective January 1, 2020, is 0%. Landlords must pay interest to their tenants annually at the end of each tenancy year, unless both parties agree otherwise, in which case the interest must be compounded annually.
By an Order in Council passed on September 8, 2004, the Security Deposit Interest Rate Regulation includes a permanent formula setting the yearly interest rate payable on security deposits. The annual rate is 3% below the rate of interest that is in effect on November 1 of the previous year for cashable one-year guaranteed investment certificates held or offered by Alberta Treasury Branches Financial (ATB Financial). ATB Financial’s rate for cashable one-year guaranteed investment certificates on November 1, 2019 was 0.50%.
For more information, contact Service Alberta’s Consumer Contact Centre in Edmonton at (780) 427-4088 or toll free in Alberta at 1-877-427-4088.
Landlords and tenants can use the security deposit interest calculator to determine the amount of interest that is owed based on the regulated interest rates. The calculator can be found by visiting Service Alberta’s website at http://www.servicealberta.gov.
