1. What is Rental Deposit Interest in BC?

In British Columbia, landlords are required to pay interest on security deposits held for tenants. The interest rate is set annually by the BC government and is typically equal to the inflation rate.

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
• \( Time \) — Time in years the deposit was held

Explanation: The calculation determines how much interest a landlord owes a tenant on their security deposit according to BC tenancy laws.

3. Importance of Calculating Deposit Interest

Details: Proper calculation ensures landlords comply with BC's Residential Tenancy Act and tenants receive the correct amount they're entitled to when moving out.

4. Using the Calculator

Tips: Enter the original deposit amount in CAD, the annual interest rate (check current BC rates), and the number of years the deposit was held. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

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

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

Q3: Is interest taxable?
A: For tenants, interest on security deposits is generally not taxable as it's considered a return of money held in trust.

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

Q5: Are pet damage deposits included?
A: Yes, all security deposits held by the landlord accrue interest under BC law.