Security Deposit Interest Rates
Landlords in all areas of Santa Cruz County, with the exception of Scotts Valley, are required to pay tenants interest on their security deposits.
- Interest is to begin accruing the day the deposit is received by the landlord.
- All rates quoted below are annual rates, computed on simple interest and are subject to change.
- How to compute: Dollar amount of your deposit X interest rate ÷ 12 (months) X number of months your landlord held the deposit. Last month’s rent is considered a security deposit. Example: $7000 x .0001 ÷ 12(months) x 9(months) = $.54 (54 cents)
City of Santa Cruz
Ordinance began 1/1/84. Effective 3/2/2013, landlord may pay security deposit interest at the termination of tenancy or at the next February occurring after accrued interest reaches $50, whichever occurs first. Rate for 2017 not determined as of update. The City advises to check their web site for the latest information.
| 1/1/09 – 12/31/09 | .23% | 1/1/12 – 12/31/12 | .04% |
| 1/1/10 – 12/31/10 | .1% | 1/1/13 – 12/31/13 | .02% |
| 1/1/11 – 12/31/11 | .06% | 1/1/14 – 12/31/16 | .01% |
Unincorporated areas of Santa Cruz County
Interest ordinance began 1/1/89. Landlord must pay interest within three weeks of every fifth year, and/or upon vacating
| 1/1/09 – 12/31/09 | .23% | 1/1/12 – 12/31/12 | .04% |
| 1/1/10 – 12/31/10 | .1% | 1/1/13 – 12/31/13 | .02% |
| 1/1/11 – 12/31/11 | .06% | 1/1/14 – 12/31/17 | .01% |
City of Capitola
Interest ordinance began 3/14/98. Capitola requires that payment be made at the end of the next February occurring after accrued interest reaches $50, or upon vacating.
| 1/1/09 – 12/31/09 | .23% | 1/1/12 – 12/31/12 | 0% |
| 1/1/10 – 12/31/10 | .1% | 1/1/13 – 12/31/13 | 0% |
| 1/1/11 – 12/31/11 | 0% | 1/1/14 – 12/31/17 | 0% |
City of Watsonville
Interest ordinance began 6/1/91. Landlord must pay interest yearly by January 1st as long as tenancy has continued for at least 6 months, or upon vacating.
| 1/1/09 – 12/31/09 | .23% | 1/1/12 – 12/31/12 | 0% |
| 1/1/10 – 12/31/10 | .1% | 1/1/13 – 12/31/13 | 0% |
| 1/1/11 – 12/31/11 | 0% | 1/1/14 – 12/31/17 | 0% |