Security Deposits Interest Rates

Interest Rates on Security Deposits

The rate of interest on security deposits is prescribed by Subsection 10(3) of the Rental of Residential Property Act, which reads as follows:

Rate of interest

10.(3)  The lessor shall credit interest to the lessee on the full amount or value of the security deposit

(a)    at the rate of six per cent per annum before April 20, 1981;
(b)    from April 20, 1981 until the effective date, at the rate of ten per cent per annum;
(c)    from the effective date until the end of the calendar year 1988, at the rate of interest payable on provincial deposit receipts on the effective date, less two per cent;
(d)    for each year thereafter, at the rate of interest payable on provincial deposit receipts on the first business day of each year, less two per cent, during the time the security deposit is held by the lessor.

Actual Interest Payable on Security Deposits Table