SECURITY DEPOSIT INTEREST INFORMATION and CALCULATOR

Attention Tenants and Property Owners:  On April 22, 2014, the Berkeley Rent Board adopted a new formula for calculating security deposit interest. All property owners may now use the "Berkeley Bank Rate" when calculating the amount of security deposit interest to return to tenants. Landlords no longer have to provide evidence that deposit funds are kept in Berkeley banks. 

The interest rate for all August 2014 move-outs is 0.1%.  The interest rate for a December 2013 annual return of Security Deposit Interest: 0.1%.   

 


 

Security Deposit Interest

The Berkeley Rent Stabilization Ordinance requires landlords to pay tenants interest on their security deposits while being held by the landlord. A security deposit for a residential rental unit is defined as any payment, fee, deposit or charge, that is imposed at the beginning of the tenancy as an advance payment of rent, or to be used for any purpose, including recovering rent defaults, repairing damages caused by the tenant, or cleaning. This does not include an application or screening fee, which must not exceed $41.72. Money paid as the first month's rent isn't considered a security deposit, but money paid in excess of the first month's rent (including "last month's rent") is considered part of the deposit. The payments are to be made annually each December during the tenancy, either as a cash payment or rent rebate, and the balance is paid upon the tenants' departure from the rental unit.  (Berkeley Municipal Code section 13.76.070.)

How to calculate the amount of security deposit interest

Security Deposit Interest Calculator 

What to do when a landlord fails to return the yearly interest by its due date

Interest Rates for December Annual Payment of Security Deposit Interest

 


 

AMENDMENT TO REGULATION 702

The Federal Reserve Board ceased publication of the H.15 rate in July of 2013. After six months of failing to publish an H.15 rate, the Federal Reserve Board issued a statement that the H.15 would cease publication of six-month CD rates due to the lack of data available to derive these rates. 

Given that the H.15 rate is no longer published, the Board amended Regulation 702 to mandate that tenants’ security deposits earn interest only at the "Berkeley Bank Rate" -- the rate equal to the 12-month average of the average rates of interest (APY) paid on the first business day of each month for six-month certificates of deposits ($5,000 minimum deposit) by insured commercial banks doing business in the City of Berkeley. Berkeley property owners may use the "Berkeley Bank Rate" regardless of whether the security deposit is held in a bank located in Berkeley.

Calculating Security Deposit Interest:

The Rent Board uses a very simple interest calculation to determine the interest payable on security deposits.  The same formula applies for annual or move-out interest.  The formula applied is: 

Partial Year Calculation (used for annual security deposit interest where a tenant moved in during the 12 months ending October 31 or for move-out interest): 
(((Interest Rate from either the Annual Payment or Move-Out tables below) X (Deposit Amount))/ 12) X (No. of months since move-in or last deposit payment) = Security Deposit Interest to be Paid

Full Year Calculation (used mostly for annual security deposit refund): 
(Interest Rate from either the Annual Payment or Move-Out tables below) X (Deposit Amount) = Security Deposit Interest to be Paid

 



Security Deposit Interest Calculator (do NOT use the ENTER key)

Enter the number of months since tenant moved in or last security deposit interest payment through move-out date or October 31 for annual interest payment.  Enter "12" for the entire year. (Annual interest is paid through October of previous year)     
Interest Rate from one of the tables below   %  
Enter the dollar amount of the security deposit held $  
   Interest to be paid:   
 

 

 

  


 

If the landlord fails to return security deposit interest by the January 10th due date:

Given the changes to Berkeley’s security deposit interest law over the years, there are a number of rates a landlord may owe a tenant when the landlord fails to return yearly interest on the security deposit by its due date – January 10 of each calendar year.

ATTENTION:  If the December interest refund payment is not made by January 10th, the tenant may recover interest at the rate of 10% by notifying the landlord in writing that the tenant intends to deduct the interest from a future rent payment. See Board Regulation 704. This remedy, however, may only be used if the landlord fails to pay deposit interest on the immediately preceding calendar year. For all other years the following rules apply:

1. If the landlord or landlord’s predecessor failed to pay interest on a tenant’s security deposit for any year between 1980 – 2004, the landlord shall owe the tenant the actual rate of interest that the deposit earned or the 12-month average of the average rates of interest paid on six-month certificates of deposit by insured commercial banks as published by the Federal Reserve Board on the first business day of each month during that calendar year (hereinafter, the “Fed Rate”). [Regulation 701(C)]

2. If the landlord or landlord’s predecessor failed to pay interest on a tenant’s security deposit for any year between 2005 – 2008, the landlord shall owe the tenant the Fed Rate. [Regulation 701(C)]

3. If the landlord or landlord’s predecessor failed to pay interest on a tenant’s security deposit for any year between 2009 – 2013, the landlord shall owe the tenant the Fed Rate or the 12-month average of the average rates of interest paid on the first business day of each month for six-month certificates of deposits by insured commercial banks doing business in the City of Berkeley (hereinafter the “Berkeley Rate”) if the tenant’s security deposit is held in a bank within the City of Berkeley. During this time period, the landlord must furnish the tenant and the Rent Board with the identity of the Berkeley bank account on a form provided by the Board. Otherwise, the landlord must use the Fed Rate. [Regulations 701(C) and 701(D)]

4. If the landlord or landlord’s predecessor fails to pay interest on a tenant’s security deposit for any year after 2013, the landlord shall owe the tenant the Berkeley Rate regardless of whether the landlord held the tenant’s deposit in a bank within the City of Berkeley. [Regulation 701(D)]

 




 Interest Rates for Annual Payment of Security Deposit Interest:

 

FEDERAL RESERVE RATES
for Annual Payment of
Security Deposit Interest

Year

Rate

 

Year

Rate

1980

13.6%

 

1997

  5.7%

1981

15.0%

 

1998

  5.5%

1982

12.8%

 

1999

  5.4%

1983

  9.2%

 

2000

  6.6%

1984

10.7%

 

2001

  3.8%

1985

  8.3%

 

2002

  1.8%

1986

  6.6%

 

2003

  1.2%

1987

  6.9%

 

2004

  1.6%

1988

  7.8%

 

2005

  3.4%

1989

  9.1%

 

2006

  5.1%

1990

  8.3%

 

2007

  5.3%

1991

  6.0%

 

2008

  3.4%

1992

  3.8%

 

2009

  1.1%

1993

  3.4%

 

2010

  0.4%

1994

  4.8%

 

2011

  0.4%

1995

  6.0%

 

2012

  0.5%

1996

  5.5%

 

2013

  0.3%

 

BERKELEY BANK
INTEREST RATES
for Annual Payment of
Security Deposit Interest

December 2009

0.9%

December 2010

0.4%

December 2011

0.3%

December 2012

0.2%

December 2013

0.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Move-Out Payment Rate: Upon the tenant's departure from the premises, the balance of any interest accrued since the last annual payment accrual date (i.e. the last October 31st) must be paid at "the average monthly rate from the last November 1st to the date of departure." The six-month CD rate, as published by local Berkeley banks, for the first business day of each month and the applicable average rate to be paid on move-out are:

** Please consult with a housing counselor to calculate unpaid security deposit interest from past years. **

 

Average Interest Rates to use for calculations of Security Deposit Interest on Move-Out:

Berkeley Bank Interest Rates (available after the first business day in November 2008):

Date

Berkeley Bank
Interest Rate

12 Month Average Rate
(to be paid upon tenant vacating unit)

8/1/2014

0.08%

0.1%=Rate to be paid for August 2014 move-out if deposit held in Berkeley bank account 
7/1/2014

0.08%

0.1%=Rate to be paid for July 2014 move-out if deposit held in Berkeley bank account 
6/2/2014

0.08%

0.1%=Rate to be paid for June 2014 move-out if deposit held in Berkeley bank account  
5/1/2014 

0.08%

0.1%=Rate to be paid for May 2014 move-out if deposit held in Berkeley bank account  
4/1/2014 

0.07%

0.1%=Rate to be paid for April 2014 move-out if deposit held in Berkeley bank account  
3/3/2014

0.08%

0.1%=Rate to be paid for March 2014 move-out if deposit held in Berkeley bank account
2/3/2014

0.08%

0.1%=Rate to be paid for February 2014 move-out if deposit held in Berkeley bank account

1/2/2014

0.07%

0.1%=Rate to be paid for January 2014 move-out if deposit held in Berkeley bank account

12/3/2013

0.07%

0.1%=Rate to be paid for December 2013 move-out if deposit held in Berkeley bank account

11/1/2013

0.08%

 0.1%=Rate to be paid for November 2013 move-out if deposit held in Berkeley bank account

10/1/2013

0.09%

0.1%=Rate to be paid for October 2013 move-out if deposit held in Berkeley bank account

9/3/2013

0.09%

0.1%=Rate to be paid for September 2013 move-out if deposit held in Berkeley bank account

8/1/2013

0.08%

 0.1%=Rate to be paid for August 2013 move-out if deposit held in Berkeley bank account

7/1/2013

0.09%

 0.1%=Rate to be paid for July 2013 move-out if deposit held in Berkeley bank account

6/3/2013

0.10%

0.1%=Rate to be paid for June 2013 move-out if deposit held in Berkeley bank account

5/1/2013

0.09%

0.1%=Rate to be paid for May 2013 move-out if deposit held in Berkeley bank account

4/1/2013

0.10%

 0.1%=Rate to be paid for April 2013 move-out if deposit held in Berkeley bank account

3/1/2013

0.10%

 0.2%=Rate to be paid for March 2013 move-out if deposit held in Berkeley bank account

2/1/2013

0.12%

 0.2%=Rate to be paid for February 2013 move-out if deposit held in Berkeley bank account

1/2/2013

0.12%

0.2%=Rate to be paid for January 2013 move-out if deposit held in Berkeley bank account

12/1/2012

0.13%

0.2%=Rate to be paid for December 2012 move-out if deposit held in a Berkeley bank account

11/1/2012

0.14%

0.2%=Rate to be paid for November 2012 move-out if deposit held in a Berkeley bank account

10/1/2012

0.16%

0.2%=Rate to be paid for October 2012 move-out if deposit held in a Berkeley bank account

9/4/2012

0.16%

 0.2%=Rate to be paid for September 2012 move-out if deposit held in a Berkeley bank account

8/1/2012

0.18%

0.2%=Rate to be paid for August 2012 move-out if deposit held in a Berkeley bank account

7/2/2012

0.19%

0.2%=Rate to be paid for July 2012 move-out if deposit held in a Berkeley bank account

6/1/2012

0.18%

 0.2%=Rate to be paid for June 2012 move-out if deposit held in a Berkeley bank account

5/1/2012

0.18%

 0.2%=Rate to be paid for May 2012 move-out if deposit held in a Berkeley bank account

4/2/2012

0.18%

0.2%=Rate to be paid for April 2012 move-out if deposit held in a Berkeley bank account

3/1/2012

0.19%

0.2%=Rate to be paid for March 2012 move-out if deposit held in a Berkeley bank account

2/1/2012

0.19%

0.2%=Rate to be paid for February 2012 move-out if deposit held in a Berkeley bank account

1/2/2012

0.19%

 0.2%=Rate to be paid for January 2012 move-out if deposit held in a Berkeley bank account

12/1/2011

0.19%

0.2%=Rate to be paid for December 2011 move-out if deposit held in a Berkeley bank account

11/1/2011

0.19%

0.3%=Rate to be paid for November 2011 move-out if deposit held in a Berkeley bank account

10/3/2011

0.19%

 0.3%=Rate to be paid for October 2011 move-out if deposit held in a Berkeley bank account

9/1/2011

0.20%

0.3%=Rate to be paid for September 2011 move-out if deposit held in a Berkeley bank account

8/1/2011

0.22%

0.3%=Rate to be paid for August 2011 move-out if deposit held in a Berkeley bank account

7/1/2011

0.25%

0.3%=Rate to be paid for July 2011 move-out if deposit held in a Berkeley bank account

6/1/2011

0.26%

0.2%=Rate to be paid for June 2011 move-out if deposit held in a Berkeley bank account

5/1/2011

0.28%

 0.3%=Rate to be paid for May 2011 move-out if deposit held in a Berkeley bank account

4/1/2011

0.28%

0.3%=Rate to be paid for April 2011 move-out if deposit held in a Berkeley bank account

3/1/2011

0.28%

0.3%=Rate to be paid for March 2011 move-out if deposit held in a Berkeley bank account

2/1/2010

0.28%

0.3%=Rate to be paid for February 2011 move-out if deposit held in a Berkeley bank account

1/3/2011

0.29%

0.3%=Rate to be paid for January 2011 move-out if deposit held in a Berkeley bank account

12/1/2010

0.29%

0.4% =Rate to be paid for December 2010 move-out if deposit held in a Berkeley bank account

11/1/2010

0.29%

 0.4%=Rate to be paid for November 2010 move-out if deposit held in a Berkeley bank account

10/1/2010

0.31%

  0.4%=Rate to be paid for October 2010 move-out if deposit held in a Berkeley bank account

9/1/2010

0.33%

  0.4%=Rate to be paid for September 2010 move-out if deposit held in a Berkeley bank account

 8/1/2010

0.34%

    0.5%=Rate to be paid for August 2010 move-out if deposit held in a Berkeley bank account

7/1/2010

0.34%

0.5%=Rate to be paid for July 2010 move-out if deposit held in a Berkeley bank account

6/1/2010

0.38%

0.5%=Rate to be paid for June 2010 move-out if deposit held in a Berkeley bank account

5/3/2010

0.38%

0.6%=Rate to be paid for May 2010 move-out if deposit held in a Berkeley bank account

4/1/2010

0.38%

0.6%=Rate to be paid for April 2010 move-out if deposit held in a Berkeley bank account

3/1/2010

0.41%

 0.7%= Rate to be paid for March 2010 move-out if deposit held in a Berkeley bank account

2/1/2010

0.41%

 0.7%= Rate to be paid for February 2010 move-out if deposit held in a Berkeley bank account

1/4/2010

0.46%

0.8%= Rate to be paid for January 2010 move-out if deposit held in a Berkeley bank account

12/1/2009

0.49%

0.8%= Rate to be paid for December 2009 move-out if deposit held in a Berkeley bank account

11/2/2009

0.60%

0.9% = Rate to be paid for November 2009 move-out if deposit held in a Berkeley bank account

10/1/2009

0.60%

1.0% = Rate to be paid for October 2009 move-out if deposit held in a Berkeley bank account

9/1/2009

0.63%

1.4% = Rate to be paid for September 2009 move-out if deposit held in a Berkeley bank account

8/3/2009

0.67%

1.6% = Rate to be paid for August 2009 move-out if deposit held in a Berkeley bank account

7/1/2009

0.85%

1.8% = Rate to be paid for July 2009 move-out if deposit held in a Berkeley bank account

6/1/2009

0.86%

2.0% = Rate to be paid for June 2009 move-out if deposit held in a Berkeley bank account

5/1/2009

0.95%

2.1% = Rate to be paid for May 2009 move-out if deposit held in a Berkeley bank account

4/1/2009

0.97%

2.3% = Rate to be paid for April 2009 move-out if deposit held in a Berkeley bank account

3/2/2009

0.98%

2.4% = Rate to be paid for March 2009 move-out if deposit held in a Berkeley bank account

2/2/2009

0.98%

2.6% = Rate to be paid for February 2009 move-out if deposit held in a Berkeley bank account

1/2/2009

1.17%

2.8% = Rate to be paid for January 2009 move-out if deposit held in a Berkeley bank account

12/1/2008

1.64%

3.1% = Rate to be paid for December 2008 move-out if deposit held in a Berkeley bank account

11/1/2008

1.77%

 3.3% = Rate to be paid for November 2008 move-out if deposit held in a Berkeley bank account

  

Federal Reserve Board Interest Rates November 2006 through June 2013
(No new CD rates have been posted by the
 Federal Reserve Board after June 2013) 

(Federal Reserve Board Interest Rates December 2004 through October 2008) 

Date

Federal Reserve
Interest Rate

12 Month Average Rate
(to be paid upon tenant vacating unit

6/3/2013

0.26%

0.3%=Rate to be paid for June 2013 move-out

5/1/2013

0.26%

0.3%=Rate to be paid for May 2013 move-out

4/1/2013

0.27%

0.4% = Rate to be paid for April 2013 move-out

3/1/2013

0.26%

0.4% = Rate to be paid for March 2013 move-out

2/1/2013

0.28%

0.4% = Rate to be paid for February 2013 move-out

1/2/2013

0.30%

0.4% = Rate to be paid for January 2013 move-out

12/3/2012

0.33%

0.5% = Rate to be paid for December 2012 move-out

11/1/2012

0.32%

0.5% = Rate to be paid for November 2012 move-out

10/1/2012

0.36%

0.5% = Rate to be paid for October 2012 move-out  

9/4/2012

0.39%

0.5% = Rate to be paid for September 2012 move-out

 8/1/2012

0.46%

0.5% = Rate to be paid for August 2012 move-out

7/2/2012

0.46%

0.5% = Rate to be paid for July 2012 move-out

 6/1/2012

0.47%

0.5% = Rate to be paid for June 2012 move-out

5/1/2012

0.46%

0.5% = Rate to be paid for May 2012 move-out

4/2/2012

0.48%

0.5% = Rate to be paid for April 2012 move-out

3/1/2012

0.53%

0.5% = Rate to be paid for March 2012 move-out

2/1/2012

0.52%

0.5% = Rate to be paid for February 2012 move-out

1/2/2012

0.73%

0.5% = Rate to be paid for January 2012 move-out

12/1/2011

0.64%

0.4% = Rate to be paid for December 2011 move-out

11/1/2011

0.50%

0.4% = Rate to be paid for November 2011 move-out (corrected 11/3/2011)

10/3/2011

0.50%

0.4% = Rate to be paid for October 2011 move-out

9/1/2011

0.42%

0.4% = Rate to be paid for September 2011 move-out

8/1/2011

0.50%

0.4% = Rate to be paid for August 2011 move-out

7/1/2011

0.38%

 0.4% = Rate to be paid for July 2011 move-out

6/1/2011

0.31%

0.3%= Rate to be paid for June 2011 move-out

5/1/2011

0.31%

0.4% = Rate to be paid for May 2011 move-out

4/1/2011

0.35%

0.5% = Rate to be paid for April 2011 move-out

3/1/2011

0.38%

0.5% = Rate to be paid for March 2011 move-out

2/2/2011

0.39%

0.5% = Rate to be paid for February 2011 move-out

1/3/2011

0.39%

0.5% = Rate to be paid for January 2011 move-out

12/1/2010

0.42%

0.4% = Rate to be paid for December 2010 move-out

11/1/2010

0.35%

0.4% = Rate to be paid for November 2010 move-out 

10/1/2010

0.37%

0.4% = Rate to be paid for October 2010 move-out

9/2/2010

0.38%

0.4% = Rate to be paid for September 2010 move-out

8/3/2010

0.53%

0.4% = Rate to be paid for August 2010 move-out

7/1/2010

0.71%

0.4% = Rate to be paid for July 2010 move-out

6/1/2010

0.77%

0.4% = Rate to be paid for June 2010 move-out

5/3/2010

0.50%

0.4% = Rate to be paid for May 2010 move-out

4/1/2010

0.40%

0.5% = Rate to be paid for April 2010 move-out

3/1/2010

0.30%

0.6% = Rate to be paid for March 2010 move-out

2/1/2010

0.30%

0.7% = Rate to be paid for February 2010 move-out

1/4/2010

0.29%

0.8% = Rate to be paid for January 2010 move-out

12/1/2009

0.28%

0.9% = Rate to be paid for December 2009 move-out

11/2/2009

0.32%

1.1% = Rate to be paid for November 2009 move-out

10/1/2009

0.31%

1.4% = Rate to be paid for October 2009 move-out

9/1/2009

0.36%

1.7% = Rate to be paid for September 2009 move-out

8/3/2009

0.45%

2.0% = Rate to be paid for August 2009 move-out

7/1/2009

0.57%

2.2% = Rate to be paid for July 2009 move-out

6/1/2009

0.60%

2.4% = Rate to be paid for June 2009 move-out

5/1/2009

1.23%

2.6% = Rate to be paid for May 2009 move-out

4/1/2009

1.70%

2.7% = Rate to be paid for April 2009 move-out

3/2/2009

1.77%

2.8% = Rate to be paid for March 2009 move-out

2/2/2009

1.68%

2.9% = Rate to be paid for February 2009 move-out

1/2/2009

1.70%

3.0% = Rate to be paid for January 2009 move-out

12/1/2008

2.70%

3.3% = Rate to be paid for December 2008 move-out

11/1/2008

3.21%

3.4% = Rate to be paid for November 2008 move-out