California's statewide residential security-deposit statute does not create a general interest-payment requirement. Some cities have local rules that require interest, so the rental address and the ordinance in effect during the tenancy matter.
Start with the city, not a statewide calculator
A search result may give a single percentage, but local requirements can differ by city and year. Confirm whether the rental was covered, the period involved, the applicable rate, and any credit or payment method allowed by the ordinance.
Use the city's official rent board, housing department, or municipal code. Do not rely on a rate for a neighboring city.
Build a checkable calculation
- Confirm the deposit amount and dates held.
- Find the official local rule and rate for each relevant period.
- Record prior interest payments or rent credits.
- Show the formula and result year by year.
- Attach the official rate notice or ordinance link.
Keep interest separate from deductions
Deposit interest and move-out deductions are different accounting questions. A landlord may dispute the interest calculation while the 21-day refund and deduction rules still apply. Separate the two amounts in your timeline and demand.
When to get local help
Contact the local housing agency or a tenant lawyer when coverage is unclear, the property changed status, the tenancy spans multiple rate periods, or the ordinance provides penalties. RentClaw can organize the calculation and source record but cannot interpret local coverage for you.
Clear answers before your next step.
Does every California landlord owe deposit interest?+
No statewide rule requires it for every residential tenancy. A local ordinance may apply.
Where do I find the correct rate?+
Use the official website or municipal code for the city where the rental is located and verify the relevant year.
Is unpaid interest part of the 21-day deduction statement?+
It is best tracked as a separate issue from the deposit balance and deductions, while preserving all related accounting.
Official sources used for this guide
- California Civil Code § 1950.5
- California Courts security deposit guide
- California Attorney General security deposit guide
- California DRE tenant guide
This article provides general self-help information for California renters. It is not legal advice, does not create an attorney-client relationship, and does not predict the outcome of a dispute. Rules and local protections can change.
