1. What is BC Rental Deposit Interest?

In British Columbia, landlords must pay interest on security deposits held for rental properties. The interest rate is set annually by the BC government and is calculated based on the deposit amount and duration held.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

• \( Deposit \) — Security deposit amount in CAD
• \( Rate \) — Annual interest rate percentage
• \( Time \) — Duration in years the deposit was held

Explanation: The calculation uses simple interest (not compounded) as required by BC tenancy laws.

3. Importance of Deposit Interest Calculation

Details: Proper calculation ensures landlords comply with BC's Residential Tenancy Act and tenants receive the correct interest owed on their deposits.

4. Using the Calculator

Tips: Enter the deposit amount in CAD, the current BC-approved interest rate percentage, and the time in years (partial years can be entered as decimals). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

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

Q2: Is the interest compounded annually?
A: No, BC tenancy laws require simple interest calculation (not compounded).

Q3: When must landlords pay the interest?
A: Interest must be paid annually or when the deposit is returned, whichever comes first.

Q4: Are pet damage deposits included?
A: Yes, the same interest rules apply to all security deposits held by landlords.

Q5: What if the tenancy lasts less than a year?
A: Calculate the interest proportionally (e.g., 6 months = 0.5 years).