SECURITY DEPOSIT INTEREST INFORMATION and CALCULATOR

Federal interest rate for June 2013 move-out is 0.3%. Berkeley interest rate for April 2014 move-out is 0.1%. Interest Rates for December 2013 annual return of Security Deposit Interest: Federal Rate: 0.3%; Berkeley Rate: 0.1%. Notice of Berkeley Bank CD Rate Form

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 that which is called "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.)

Security Deposit Interest Questions and Answers

How to calculate the amount of security deposit interest

Security Deposit Interest Calculator 

Interest Rates for December Annual Payment of Security Deposit Interest

METHOD FOR CALCULATING INTEREST ON TENANT SECURITY DEPOSITS Berkeley landlords are allowed to choose between two different ways of determining the rate of interest that accrues on their tenants' security deposits.

Berkeley landlords were previously required to pay interest on tenant security deposits at the average yield rate for six-month certificates of deposit as reported by the Federal Reserve Board. While landlords have been required to return interest at the Federal Reserve CD rate, they have been free to use or invest the security deposits in any manner they choose.  In November of each year the Rent Board has computed the Federal Reserve CD rate average and notified landlords of the applicable rate for the December interest refund payment.

In November 2008, the Rent Stabilization Board amended Regulation 702 to provide an alternate method of calculating the interest for landlords who keep the deposits in a qualifying account, i.e., an insured account at a financial institution located in Berkeley. Beginning with the December 2009 interest refund payment, landlords who have held their tenants' security deposit in a qualifying account for the prior twelve months, may pay interest on the security deposits at the 12-month average of the average rates of interest offered on six-month CDs, $5,000 minimum deposit, by commercial banks located in Berkeley on the first business day of each month. It is expected that this rate will generally be somewhat lower than the Federal Reserve six-month CD rate.

To qualify for the Berkeley bank CD rate for a December interest refund payment, the tenant's deposit must have been held in a qualifying account for the twelve months ending the prior October 31st (or since the tenancy began if the tenancy is less than twelve months old) and, when the interest is refunded to the tenant, the landlord must provide the tenant and the Rent Board with the identity of the Berkeley bank account using a Rent Board form. Rent Board staff will obtain the interest rate data directly from local banks on the first business day of each month and in November will notify the landlord community of the rate of interest to be used in calculating the interest refund payment to be made in December.

Landlords who do not place their deposits in a qualifying Berkeley account will continue to pay interest at the Federal Reserve six-month CD rate. The Rent Board will resolve any disputes over the applicable rate of interest.

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.

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

Examples:

1. For a December 2007 annual security deposit interest payment on a deposit of $1,500 which was collected on move-in February 1, 2007 (9 months) would be:  ((5.3% [or 0.053] X $1,500)/12) x 9 = $59.63 interest due. 

2. A December 2007 annual security deposit interest payment on the same $1,500 held for the entire year (since November 2006) would be : 5.3% [or 0.053] X $1,500 = $79.50 interest due.

3. A May 31, 2007 move-out payment where the landlord has properly made the annual payment of security deposit interest would be:  ((5.4% [or 0.054] X $1,500)/12) X 7 = $47.25 interest due. 

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:   
 

 Interest Rates for Annual Payment of Security Deposit Interest:

Rates for Annual Payment of Security Deposit Interest - Federal Reserve Rates

December 2013

0.3%

December 2012

0.5%

December 2011

0.4% (corrected 11/3/2011)

December 2010

0.4%

December 2009

1.1%

December 2008

3.4%

December 2007

5.3%

December 2006

5.1%

December 2005

3.4%

December 2004

1.6%

 

Rates for Annual Payment of Security Deposit Interest - Berkeley Rates

December 2013

0.1%

December 2012

0.2%

December 2011

0.3%

December 2010

0.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 the Federal Reserve Board and local Berkeley banks, for the first business day of each month and the applicable average rate to be paid on move-out are:

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

Federal Reserve Board Interest Rates November 2006 through current
(no new CD rates have been posted by the
 Federal Reserve Board for the months July 2013 and August 2013, as of 8/5/2013)

(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

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)

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

Security Deposit Interest Questions and Answers