Alberta landlords must pay interest on a tenant's security deposit, at a rate the province sets each year. For most of the last two decades that rate was 0%, so many landlords and tenants never thought about it. Then it rose to 1.6% in 2024 and 0.5% in 2025, and tenancies that ran through those years now carry a small amount of interest that has to be paid.
This guide gives the 2026 rate, explains how the rate is set, and shows how to calculate the interest owed, with worked examples.
Alberta Deposit Interest Checklist (2026)
An Alberta deposit interest checklist: the 0% rate for 2026, the 2024 and 2025 rates still owed, annual or compounded payment, and the calculation method.
Get Free PDF →The 2026 rate is 0%
According to alberta.ca, the interest rate on security deposits for January 1 to December 31, 2026 is 0%. No interest builds up on a deposit for any day in 2026.
Interest that built up in earlier years is still owed. A deposit held through 2024 or 2025 earned interest at that year's rate, and that money belongs to the tenant.
| Period | Annual rate |
|---|---|
| January 1 to December 31, 2026 | 0% |
| January 1 to December 31, 2025 | 0.5% |
| January 1 to December 31, 2024 | 1.6% |
| January 1, 2009 to December 31, 2023 | 0% |
| January 1 to December 31, 2008 | 0.5% |
| January 1 to December 31, 2007 | 0.3% |
Source: alberta.ca security deposit interest rate calculator, which lists every rate back to 1984.
How the rate is set
Section 45(1) of the Residential Tenancies Act (RTA) requires a landlord to pay interest "at the prescribed rate" on a security deposit made in money. The rate is prescribed by the Security Deposit Interest Rate Regulation (AR 190/2004). Section 2 of that regulation sets it, for 2005 and each later year, at 3 percentage points below the rate ATB Financial offered on November 1 of the previous year for cashable one-year guaranteed investment certificates (GICs).
Alberta.ca explains the result: if that GIC rate is 3% or less on November 1, the deposit interest rate for the next year is 0%. The new rate takes effect on January 1 each year.
When interest must be paid
- Every year, by default. Section 45(1) says the landlord shall pay the interest to the tenant annually.
- At the end, by written agreement. Under s.45(2), the landlord and tenant may agree in writing that interest will not be paid each year. In that case it is compounded annually and paid when the tenancy ends.
- A higher rate is allowed. If the lease promises a rate above the prescribed rate, the landlord is bound by it (s.45(4)).
- The landlord keeps any extra. If the trust account earns more than the interest owed to the tenant, the landlord may keep the difference (s.45(3)).
- Interest is part of the deposit at the end. When a tenancy ends, interest still owed counts as part of the security deposit that must be returned within 10 days (s.46).
Alberta.ca adds that no payment is required in years when the rate is 0%. For the rest of the deposit rules, including the one-month cap and the trust account, see Alberta security deposits.
How to calculate the interest
The method on alberta.ca works one calendar year at a time:
- Multiply the deposit by that year's rate to get a full year's interest.
- Divide by the number of days in the year (366 in a leap year such as 2024) to get the interest per day.
- Multiply by the number of days the deposit was held in that year.
- Add the years together.
Example 1: a $1,500 deposit, March 2025 to October 2026
A tenant pays a $1,500 deposit and moves in on March 1, 2025. The tenancy ends on October 31, 2026, and interest was not paid during the tenancy.
- 2025: $1,500 × 0.5% = $7.50 for a full year. $7.50 ÷ 365 = about 2.05 cents a day. March 1 to December 31, 2025 is 306 days, so 306 × $7.50 ÷ 365 = $6.29.
- 2026: the rate is 0%, so $0.
- Total interest: $6.29, so the deposit to account for at move-out is $1,506.29.
Example 2: alberta.ca's worked examples
Alberta.ca gives two worked examples. In the first, a $1,000 deposit is held from July 1, 2025 to December 31, 2026, and the interest owed is $2.52 (184 days in 2025 at 0.5%, and nothing for 2026). In the second, a $1,000 deposit is held from June 1, 2024 to December 31, 2026 under a written agreement to compound and pay at the end. Simple interest would be $14.35, and compounding at the one-year mark brings it to $14.39.
The alberta.ca calculator runs these numbers for you from the deposit amount and dates.
Common mistakes
- Assuming "0% in 2026" means nothing is owed. Days in 2024 and 2025 earned interest.
- Using 365 days for 2024. 2024 was a leap year with 366 days.
- Compounding without a written agreement. Without a written agreement under s.45(2), interest is due every year.
- Leaving interest off the move-out statement. Interest owed is part of the deposit you must account for within 10 days.
- Charging interest on a deposit that is not money. Section 45 applies to a deposit made in money.
Keeping track across many tenancies
For a landlord or property manager with many units, the work is in the records. Section 44(5) requires security deposit records for each tenant that show the date and amount received, the date and financial institution where it was deposited, the interest payable and paid, and how the deposit was dealt with at the end. Keep them for at least 3 years after the tenancy ends.
- Record each deposit's received date. That date starts the interest clock.
- Note whether there is a written agreement to compound under s.45(2).
- Each January, check the new rate and work out any annual payments due.
- On a sale, s.47(2) requires the new landlord to give each tenant a statement of the deposit and interest standing to the tenant's credit.
How Tenon10 helps
Tenon10 tracks each Alberta tenancy's security deposit and its 10-day return date after move-out, so the deposit and any interest owed are accounted for on time.
Move-in and move-out inspection reports sit with the deposit record, which matters because a landlord cannot deduct for damage without them.
Frequently asked questions
What is the security deposit interest rate in Alberta for 2026?
0% for January 1 to December 31, 2026.
Do I still owe interest if the rate is 0% now?
Yes, if the deposit was held during 2024 (1.6%) or 2025 (0.5%). Interest for those days is owed to the tenant.
Does interest compound in Alberta?
Only if the landlord and tenant agree in writing that interest will be paid at the end of the tenancy instead of every year. Then it compounds annually.
Can a landlord pay more than the prescribed rate?
Yes. If the lease sets a higher rate, the landlord must pay it.
When will the 2027 rate be known?
It is based on ATB Financial's cashable one-year GIC rate on November 1, 2026, and takes effect on January 1, 2027. Check alberta.ca for the published rate.
Alberta Deposit Interest Checklist (2026)
An Alberta deposit interest checklist: the 0% rate for 2026, the 2024 and 2025 rates still owed, annual or compounded payment, and the calculation method.
Get Free PDF →Never miss a deposit deadline
Track every Alberta security deposit and its 10-day return date in Tenon10.
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Related Alberta guides
- Alberta Security Deposits
- Alberta Landlord Guide: Every Rule in One Place
- Alberta Tenant Guide: Your Rights From Move-In to Move-Out
Sources: Residential Tenancies Act, SA 2004 c R-17.1, ss.44–47, 60; Security Deposit Interest Rate Regulation, AR 190/2004; Alberta.ca: Annual security deposit interest rate; Alberta.ca: Security deposit interest rate calculator; Residential Tenancies Ministerial Regulation, AR 211/2004. This article is a summary of Alberta rules as of October 2026, not legal advice. Check the RTA and alberta.ca for your situation.
