Alberta Security Deposit Interest in 2026: Rates and How to Pay It

Alberta landlords must pay interest on security deposits at a rate the province sets each year. For **2026 the rate is 0%**, but that does not mean a long tenancy owes nothing: earlier years had positive rates.

## The rates

| Year | Rate | | --- | --- | | 2026 | 0% | | 2025 | 0.5% | | 2024 | 1.6% |

Interest for each year is calculated at that year’s rate. A tenant who has been with you since 2024 has earned interest for 2024 and 2025 even though 2026 adds nothing.

## Paid every year — unless you agree otherwise

Interest that accumulates while the rate is above 0% must be paid to the tenant **every year**, unless you and the tenant agree **in writing** to compound it yearly and pay it at the end of the tenancy. If you have that written agreement, keep it with the lease; if you don’t, the yearly payment is the default.

## The deposit itself

An Alberta security deposit can be no more than one month’s rent at the start of the tenancy, and it cannot be increased later. At the end of the tenancy you must, within **10 days** after the tenant gives up possession, either return the full deposit with interest, or give the tenant the balance with an itemized statement (or estimate) of deductions. If you give an estimate, the final statement and any amount owing are due within 30 days after the tenancy ends.

## Keep the calculation with the tenancy

Record the deposit amount, the date you received it and each year’s interest payment. In RentMouse, the deposit sits on the lease record, so the figures are in one place when the tenancy ends.

**Sources:** [Alberta: Annual security deposit interest rate](https://www.alberta.ca/annual-security-deposit-interest-rate) · [Alberta: Security deposits](https://www.alberta.ca/security-deposits). See also the [Alberta landlord guide](/ca/ab). General information, not legal advice.