Do I earn interest on my security deposit?
The answer is painfully simple. Yes, you do earn interest. That being said, interest rates are so low in Canada, that the provincial government of Alberta has set it at 0%. So you do earn interest, it’s just that the interest is zero percent.
It is set based on the Bank of Canada’s interest rate, follow the link below:
https://www.servicealberta.ca/interest-chart.cfm
Landlords must pay interest on their tenants’ security deposits at the end of each tenancy year.
Although it floated between 0.3 and 0.5% between 2007 and 2008, the interest rate on secuirty deposits has been 0% since 2002.During the 80s landlords paid 8% interest.
Interest rates in Alberta are 0%
Landlords are still required to keep security deposits in an interest bearing trust account as things change and deposits could earn interest one day. Keep an eye on the charts, until then:
Security Deposits Earned and will Earn 0% Interest from 2009 to Dec 31st 2020