Interest owed to the tenant
deposit + interest =
| Period | Rate | Days | Interest |
|---|---|---|---|
Estimate for information only, not legal advice. Rates last verified September 23, 2026. Confirm with the official calculator.
Tenant Buddy tracks every deposit from the day it was paid and works out the interest owed across all of your leases in one run.
Each province sets its own rate and rules. Pick a province for its full rate history and a calculator set up for it.
| Province / territory | 2026 rate | Method | When it's paid |
|---|---|---|---|
| British Columbia | 0% | Compound (yearly) | At move-out |
| Alberta | 0% | Simple | Every year |
| Saskatchewan | 0% under 5 years | Simple | At move-out, 5+ year tenancies |
| Manitoba | 0.5% | Compound (yearly) | At move-out |
| Ontario | 2.1% | Simple | Every year, on the anniversary |
| Quebec | Deposits not allowed | n/a | n/a |
| New Brunswick | Not paid to tenants | n/a | n/a |
| Nova Scotia | 0% | Compound (yearly) | At move-out |
| Prince Edward Island | 2.75% | Simple | At move-out |
| Newfoundland and Labrador | 0% | Simple | At move-out |
| Yukon | 2.45% | Simple | At move-out |
| Northwest Territories | 0.01% | Simple | Credited every year |
| Nunavut | Not published | Simple | Credited every year |
Last verified September 23, 2026 against official government sources.
Most provinces require landlords to pay interest on the security (damage) deposit they hold. The rate is set by each province, usually once a year, and is often tied to the Bank of Canada prime rate or a benchmark savings rate. That's why many provinces sat at 0% for years and then climbed when interest rates rose.
The rules differ in three ways: the rate for each year, whether interest is simple or compound, and when it's paid - every year, or with the deposit when the tenant moves out. Ontario is the outlier: security deposits aren't allowed, so interest is paid on the last month's rent deposit instead, at the annual rent increase guideline.
Because the rate changes over time, a deposit held for several years earns a different rate for each year. This calculator splits the tenancy at every rate change and applies the right rate to each day.
Common questions from Canadian landlords and tenants about deposit interest
In most provinces and territories, yes. The province sets the rate each year and the landlord owes that interest to the tenant. Quebec does not allow security deposits at all, in New Brunswick the deposit is held by the province and the interest goes to the Crown. Ontario does not allow damage deposits, but landlords must pay interest on a last month's rent deposit.
Multiply the deposit by the annual rate, then by the share of the year the deposit was held. When a deposit is held across several years, each year uses its own rate. Some provinces compound, so interest earned in earlier years also earns interest. This calculator handles both and shows the breakdown for each period.
A 0% rate means no interest builds up for that period, but interest earned in earlier years at a higher rate is still owed. That is why the calculator uses the rate history instead of just this year's rate.
Yes. Tenant Buddy tracks each deposit from the day it was paid, calculates interest across all of your leases in one run, posts the journal entries, and either adds the interest to the deposit or credits the tenant's account. It also flags interest still owed when a tenant moves out.
Rates are checked against each province's official government source. The date they were last verified is shown at the top of every calculator page. Always confirm with your provincial residential tenancy office before paying out a deposit.
This calculator is a free estimate for information only and is not legal advice. Rates and rules come from each province's official sources and were last verified on September 23, 2026. Always confirm with your provincial residential tenancy office before paying or returning a deposit.
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