City Ordinances That Do Require It
California has no statewide rule, but several cities have their own deposit interest rules. If you rent in one of them, check that ordinance.
San Francisco
San Francisco's rate year runs March to February rather than January to December, so the applicable rate depends on which part of the year the tenancy anniversary falls in. The current rate is 4.2% for March 1, 2026 through February 28, 2027, set by San Francisco Rent Board, published in early January for the year beginning March 1 under S.F. Admin. Code § 49.2. It resets annually — the SF Rent Board — Security Deposits publishes the current figure.
Los Angeles
Applies to units covered by the Rent Stabilization Ordinance, and only where the deposit has been held for a year or more. The current rate is 3.03% for 2026, set by Los Angeles Rent Adjustment Commission, adopted by November 30 each year under L.A. Mun. Code § 151.06.02. It resets annually — the LA Housing Department — RSO publishes the current figure.
Other California cities with deposit interest ordinances include Oakland, Berkeley, Santa Monica, West Hollywood, East Palo Alto, Hayward. Each sets its own rate and covered units, so check the municipal code.
What Still Applies Without a State Requirement
A lease can promise interest even where no statute requires it, so check the deposit section of the lease. If the landlord holds the deposit in an interest-bearing account, the lease and the state's deposit rules may say who gets that interest.
The larger figure in most cases is not the interest at all. A deposit held for several years is money the tenant cannot invest or spend, and the calculator above shows that opportunity cost alongside any interest — which is usually the more revealing of the two numbers in a state with no requirement.
How California Compares to Nearby States
Deposit interest is one of the sharpest state-line differences in residential tenancy: neighboring states frequently land on opposite sides of it.
The full picture across all 51 jurisdictions is on the deposit interest by state index.
Common Questions About California Deposit Interest
Does my landlord have to pay interest on my security deposit in California?
As of September 11, 2026, we did not find a statewide requirement in California. San Francisco and Los Angeles have their own ordinances, so a deposit on a covered unit there may earn interest. Elsewhere, check the lease. Laws change, so confirm the current rules.
Which states do require security deposit interest?
As of September 11, 2026, our index lists fourteen: Connecticut, the District of Columbia, Illinois, Iowa, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio and Pennsylvania. Several apply only in some cases, such as by building size or how long the deposit is held. The index links each statute.
What does a held security deposit actually cost me in California?
The interest is usually the smaller number. A deposit is money that cannot be invested or spent while the landlord holds it, and over a multi-year tenancy that opportunity cost is typically larger than any interest a statute would have produced. The calculator on this page shows both figures side by side.
Can a lease in California promise deposit interest anyway?
Yes, a lease can include a deposit interest term even where no statute requires one. If it does, the lease sets the rate and when it is paid.