The Security Deposit Interest Rate Regulation sets out the interest rate that must be paid on security deposits. The government-defined annual rate of interest is “3% below the rate of interest that is in effect on November 1 of the previous year for cashable one‑year guaranteed investment certificates held or offered by Alberta Treasury Branches Financial.”
To make it easier to determine how much interest is due, Service Alberta has an online security deposit interest calculator.
Interest on a security deposit must be paid to a tenant at the end of each tenancy year. In some cases, the landlord and tenant may agree that the interest will be paid at the end of the tenancy. Such an agreement must be in writing and any interest paid this way must be compounded annually.