For both tenants and landlords, staying informed about the deposit interest rate is key to smooth rental experiences. The great news for 2025 is that the interest payable on deposits is 0.95%! This rate is set by the Residential Tenancy Regulations, which determine the deposit interest rate as 4.5% below the prime lending rate at the start of the year. On January 1, 2025, the prime lending rate was 5.45%, leading to this year’s rate of 0.95%.
Looking Back: A Changing Landscape
The deposit interest rate has seen changes over the years:
- 2009-2022: The rate remained at 0%, as the prime lending rate was below 4.5%.
- 2023: A positive shift brought the rate up to 1.95%.
- 2024: It climbed even higher to 2.7%.
- 2025: This year, the rate is set at 0.95%—a reflection of evolving economic conditions.
What This Means for You
- For Landlords: Ensuring you pay the correct interest on security deposits is simple and keeps you in good standing with regulations.
- For Tenants: When moving out, you’ll receive interest on your deposit at the regulated rate—every little bit counts!
Easy Interest Calculation
To make things even easier, landlords can use the RTB Deposit Interest Calculator to quickly determine the amount payable. This ensures accuracy and keeps rental transactions transparent and fair for everyone.
Final Thoughts
With a deposit interest rate of 0.95%, 2025 brings continued clarity for rental agreements. By staying informed and using available tools like the RTB Deposit Interest Calculator, both landlords and tenants can manage deposits with confidence. Here’s to a smooth and well-managed rental experience in 2025!
