Do landlords have to pay interest on security deposits in California?

No statewide statute requires it in California, though local ordinances or your lease can add the obligation. As of July 1, 2024 (AB 12), security deposits capped at 1 month rent for most landlords. Small landlords (natural persons with no more than 2 properties totaling up to 4 units) may charge up to 2 months, except from service members.

How large can the deposit itself be in California?

California generally allows at most 1 month's rent (most landlords) as a security deposit.

When do I get my security deposit back in California?

Generally within 21 days after move-out.

California Deposit Interest Rules

no interest required

California has no statewide requirement that landlords pay interest on security deposits (14 of 51 US jurisdictions do). Your lease may still promise interest — if it does, that promise is enforceable.

Educational information: generated from our California law database (last updated 2024-07-01). Not legal advice.

How California compares

14 of 51 US jurisdictions require landlords to pay interest on security deposits. Here is how California compares with other states in our database.

State	Deposit Interest Rules
California	no interest required
Colorado	no interest required
Connecticut	interest required
Delaware	no interest required
District of Columbia	interest required (deposits held 12+ months)

Frequently asked questions

Do landlords have to pay interest on security deposits in California?: No statewide statute requires it in California, though local ordinances or your lease can add the obligation. As of July 1, 2024 (AB 12), security deposits capped at 1 month rent for most landlords. Small landlords (natural persons with no more than 2 properties totaling up to 4 units) may charge up to 2 months, except from service members.
How large can the deposit itself be in California?: California generally allows at most 1 month's rent (most landlords) as a security deposit.
When do I get my security deposit back in California?: Generally within 21 days after move-out.

Check Your Lease Against California Law

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More California lease law guides

Educational information generated from state statute data — not legal advice. Consult a licensed attorney in California for your specific situation.