Landlords must pay interest on their tenants’ security deposits at the end of each tenancy year.

The interest must be paid every year unless the landlord and tenant agree in writing that the interest will be compounded yearly and paid to the tenant at the end of the tenancy.

Security deposit interest formula

The minimum annual interest rate that landlords must pay on security deposits is determined by a formula set out in the Security Deposit Interest Rate Regulation

Current and past interest rates payable on security deposits

TIME PERIOD Minimum Annual Interest Rate January 1, 2009 to December 31, 2020 0% January 1, 2008 to December 31, 2008 0.5% January 1, 2007 to December 31, 2007 0.3% January 1, 2002 to December 31, 2006 0% January 1, 2001 to December 31, 2001 1.75% January 1, 2000 to December 31, 2000 1.15% January 1, 1999 to December 31, 1999 0.75% January 1, 1997 to December 31, 1998 0% January 1, 1996 to December 31, 1996 2.5% January 1, 1995 to December 31, 1995 2.75% July 1, 1994 to December 31, 1994 1.5% February 1, 1993 to June 30, 1994 3.0% March 1, 1987 to January 31, 1993 6.0% January 1, 1984 to February 28, 1987 8.0%

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