1. What is Rent Deposit Interest?

In British Columbia, landlords are required to pay interest on security deposits held for tenants. This calculator helps determine how much interest is owed based on BC tenancy laws.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

• \( Deposit \) — Security deposit amount in CAD
• \( Rate \) — Annual interest rate (as percentage)
• \( Time \) — Time period in years

Explanation: The calculation multiplies the deposit amount by the annual interest rate (converted to decimal) and the time period in years.

3. BC Tenancy Laws on Deposit Interest

Details: In BC, the interest rate on security deposits is set annually by the Residential Tenancy Branch. Landlords must pay this interest to tenants each year.

4. Using the Calculator

Tips: Enter the original deposit amount in CAD, the current BC-approved interest rate (as percentage), and the time period in years (can be fractional).

5. Frequently Asked Questions (FAQ)

Q1: What is the current BC rent deposit interest rate?
A: The rate changes annually. Check the BC Residential Tenancy Branch website for the current year's rate.

Q2: When must landlords pay the interest?
A: Interest must be paid annually or when the deposit is returned, whichever comes first.

Q3: Is the interest taxable?
A: For tenants, interest on security deposits is generally not considered taxable income.

Q4: What if the tenancy is less than a year?
A: Interest is calculated proportionally for partial years.

Q5: Can landlords charge different interest rates?
A: No, landlords must use the rate set by the Residential Tenancy Branch.