California security deposit interest is not required by state law, so Civil Code Section 1950.5 has no rule making your landlord pay interest on your deposit. If your letter cites a city rule on california security deposit interest, your city may add that duty, but the state number that matters most is 21 calendar days to return your deposit after you move out.
What California Security Deposit Interest Actually Says
Here is the key point about california security deposit interest. The main state deposit law is California Civil Code Section 1950.5. It covers how much a landlord can charge, what they can deduct, and when they must pay you back. However, it has no rule requiring interest on your deposit.
As a result, any california security deposit interest you are owed comes from a city ordinance, not the state. If you got a letter that mentions interest, look for a city code section. That is typically where the interest rule lives. The state section still matters, because it controls the return of your money.
| Provision | Exact rule | Section |
|---|---|---|
| Interest on deposit | No statewide requirement | Civ. Code 1950.5 (no interest provision) |
| Deposit limit | One month’s rent, plus first month’s rent (limited exceptions) | 1950.5(c)(1) |
| Return deadline | 21 calendar days after you move out | 1950.5(h)(1) |
| Receipts for deductions | Required when repair and cleaning charges exceed $125 | 1950.5(h)(4)(A) |
| Move-in photos | Required for tenancies starting on or after July 1, 2025 | 1950.5(g)(1) |
| “Nonrefundable” deposits | Not allowed in any lease | 1950.5(n) |
| Bad-faith penalty | Up to twice the deposit, plus actual damages | 1950.5(m) |
Who California Security Deposit Interest Covers (and Who It Does Not)
Section 1950.5 covers residential rentals across California. That includes apartments, houses, and rented rooms. However, california security deposit interest only applies where a local ordinance creates it. In most cases, that means cities with their own rent boards.
For example, San Francisco, Berkeley, and Santa Monica have local rules on deposit interest. The rates can change each year. So check the official city page for the current rate and its effective period. Do not rely on an old number from a website or a neighbor.
| City | Interest rule | Where to confirm the current rate |
|---|---|---|
| San Francisco | Local rule requires interest | San Francisco Rent Board |
| Berkeley | Local rule requires interest | Berkeley Rent Board |
| Santa Monica | Local rule requires interest | Confirm directly with the Santa Monica rent control office |
| Rest of California | No state interest rule | Check your own city or county code |
If your city is not listed, california security deposit interest may still apply there. Call your city hall or local rent board to ask. If you live outside any such city, the state rules above are your main protection.
What Your Landlord Must Do Under This Law
Even with no california security deposit interest duty, your landlord has clear state duties. Before you move out, they must tell you in writing that you can ask for an initial inspection. It happens no earlier than two weeks before you leave. The landlord must give at least 48 hours’ written notice of the time.
After you move out, your landlord must send an itemized statement and any money left over. If they deduct for repairs or cleaning, they must include photos and receipts. Typically, they must also take move-out photos, a rule in effect since April 1, 2025. In a city with california security deposit interest rules, the interest owed follows the local ordinance.
If the building is sold, the old landlord must transfer your deposit to the new owner or return it to you. They must also tell you in writing. As a result, a sale does not wipe out your deposit rights.
What You Can Do When It Is Broken
Start with a short, calm letter. Ask for your deposit, the itemized list, and any unpaid california security deposit interest your city requires. Keep a copy. Photos, a canceled check, a receipt, or your lease can all prove how much you paid.
If the landlord keeps your deposit in bad faith, a court may award up to twice the deposit, plus your actual losses. The landlord must prove the charges were reasonable. You can often file in small claims court, if your claim fits that court’s dollar limit. Check with your court for the current limit.
For unpaid california security deposit interest, your city rent board may also help. For example, some boards accept complaints or answer questions by phone. If you face an eviction or a large claim against you, contact a local legal-aid office or tenant attorney right away.
📨 Get Free Tenant Rights Guides Alerts
Free · No spam · Unsubscribe anytime
Frequently Asked Questions
Does my landlord owe me interest on my deposit in California?
Not under state law. California security deposit interest is only required where a city ordinance says so, such as San Francisco or Berkeley. Check your city’s rent board for the current rate.
Can my landlord call part of my deposit “nonrefundable”?
No. Section 1950.5(n) bans any lease term that calls a deposit nonrefundable. You may be able to recover that money if it was wrongly kept.
How do I find the current california security deposit interest rate for my city?
Go to your city’s official rent board page. Rates can change each year, so look for the effective period. If the page does not list it, call the board and ask.
Protect your stuff while you sort this out
A landlord’s insurance does not cover your belongings — renters insurance does, often for a few dollars a month. Compare options before your next move.
Find Your State’s Exact Rules
Notice periods, deposit caps, and the eviction timeline all change from state to state. Pick your state to see the exact days, dollar limits, and steps that apply where you live.
See Tenant Rights in All 50 States →
Sources & How to Verify
The rules on this page are drawn from official government and legal-aid sources. Tenant law changes, so always confirm the exact rule with your state’s statute or a local legal-aid office.
- HUD: hud.gov — federal renter protections and fair housing
- Legal Services Corporation: lsc.gov — find free legal aid in your state
- Cornell Legal Information Institute: law.cornell.edu/wex — plain-English legal definitions
- Your state statute & court self-help portal: search “[your state] landlord tenant act” and “[your state] court self-help eviction” for the exact law and forms
Content last reviewed September 2026. If you notice outdated information, please contact us.
California Renter Guides
- California Eviction Process
- California Tenant Rights
- California Security Deposit Law
- California Rent Increase Laws
- California Repairs and Habitability
- Breaking a Lease in California
Related Guides
- Tenant Rights by State (50-State Guide)
- More in This Category
- Tenant Scenarios — What to Do When…
- Notices, Letters & Documents
- Comparison Guides
- Tenant Rights Legal Glossary
Informational only — not legal advice. Tenant Rights Info is an independent educational resource, not a law firm, and this page does not provide legal advice. Landlord-tenant law varies by state and city and changes over time, so always verify the exact rule with your state’s statute, your local court’s self-help portal, or a legal-aid office. For urgent situations like an active eviction, contact a local legal-aid office or a licensed tenant attorney in your state right away.