deposit-interest

Security Deposit Interest in Berkeley: 0.9% (Dec 2025 annual) (2026)

Berkeley requires annual interest on security deposits at the 'Berkeley Bank Rate' published by the Rent Board — 0.9% for December 2025 and 0.6% … Current rate, payment rules and the official sourc

Rule verified: 2026-10-28

Quick answer

Yes — Berkeley landlords must pay interest on qualifying security deposits. Berkeley requires annual interest on security deposits at the 'Berkeley Bank Rate' published by the Rent Board — 0.9% for December 2025 and 0.6% for October 2026 move-outs — plus a 10% penalty if the annual payment is late.

State statute (official text) · 2026-10-28

The current rate in Berkeley

Berkeley's rate is 0.9% (Dec 2025 annual) / 0.6% (Oct 2026 move-out) for the period Published periodically by the Berkeley Rent Board. Berkeley uses the 'Berkeley Bank Rate': one value applies to annual interest payments and a separate value applies when the deposit is returned at move-out. The Board publishes both on its official security deposit interest calculator page.

When the rate changes

The Berkeley rate is not written permanently into law — the publishing authority re-announces it periodically, and the number can move up or down with it. When a new value publishes, this page's rate, the worked example below and the verified date all move together. Before relying on a figure from any source — including this one — check the official announcement linked below for the current period.

How the interest is calculated

Two published values apply at different moments: the annual payment rate (for interest credited during the tenancy) and the move-out rate (for interest due when the deposit is returned).

Rules that go further

A landlord who fails to pay the annual interest by January 31 owes the tenant 10% penalty interest on top of the amount due.

Berkeley vs California state law

California does not require interest at the state level — the Berkeley rule is what creates the obligation inside the city. The statewide picture: California security deposit interest.

What that looks like in dollars

For a $2,000 deposit held for a full year at the current 0.9% (Dec 2025 annual) rate, the interest owed works out to $18.00:

Deposit	Rate	One year's interest
$2,000	0.9% (Dec 2025 annual)	$18.00
$3,500	0.9% (Dec 2025 annual)	$31.50

Partial years are prorated. This example applies the published rate mechanically — the statute and the calculation method section above control in a real dispute.

The source behind it

| Field | Value | | --- | --- | --- | | Rule | Berkeley Municipal Code — rate published by the Berkeley Rent Board | | Official source | rentboard.berkeleyca.gov | | Last verified | 2026-10-28 |

City of Berkeley Rent Board — Security Deposit Interest Calculator (0.9% Dec 2025 / 0.6% Oct 2026 / Berkeley Bank Rate / Jan 31 deadline + 10% penalty) (official — primary source)

FAQ

Do landlords in Berkeley have to pay interest on security deposits?

Yes. Berkeley requires annual interest on security deposits at the 'Berkeley Bank Rate' published by the Rent Board — 0.9% for December 2025 and 0.6% for October 2026 move-outs — plus a 10% penalty if the annual payment is late.

What is the current security deposit interest rate in Berkeley?

0.9% (Dec 2025 annual) / 0.6% (Oct 2026 move-out) for the period Published periodically by the Berkeley Rent Board. Berkeley uses the 'Berkeley Bank Rate': one value applies to annual interest payments and a separate value applies when the deposit is returned at move-out. The Board publishes both on its official security deposit interest calculator page.

Where can I confirm the rate?

The official source linked in the source section below publishes the current value — rates change periodically, so check it before relying on this page.

Independent second source · 2026-10-28