Alberta Sets the 2026 Security Deposit Interest Rate at 0%

The rate is calculated directly from ATB Financial's cashable one-year GIC rate observed on November 1 of the prior year, minus 3 percentage points, rather than from a broader inflation or interest-rate index.

[Cite: Security Deposit Interest Rate Regulation, Alta. Reg. 190/2004]

That specific benchmark gives the calculation a single, verifiable reference point each year; a landlord or tenant checking the applicable rate can trace it directly back to that one GIC figure rather than needing to interpret a more general economic indicator.

Since the formula subtracts a flat 3 percentage points from the GIC rate, any GIC rate of 3% or lower mathematically produces a deposit interest rate of 0% rather than a negative number.

[Cite: Security Deposit Interest Rate Regulation, Alta. Reg. 190/2004]

That's exactly what happened for 2026; the GIC rate observed in November 2025 came in at or below that 3% threshold, which is why landlords owe no interest on deposits held during the current calendar year.

Alberta's deposit interest rate came in at 1.6% for 2024 and 0.5% for 2025, before reaching 0% for 2026, a steady annual decline rather than a sudden one-time drop.

[Cite: Alberta.ca, Annual Security Deposit Interest Rate page]

That trend reflects how closely this rate tracks the underlying GIC benchmark; as the referenced GIC rate has moved downward each November, the resulting deposit rate has followed the same downward path, landing at the formula's effective floor this year.

Before 2024, Alberta landlords hadn't owed any mandatory security deposit interest for 15 years, since 2009; the 1.6% rate in 2024 was the first time this obligation actually applied again.

[Cite: Alberta.ca, Annual Security Deposit Interest Rate page]

A landlord newer to the Alberta market, or one who hasn't dealt with this requirement in over a decade, should understand that the interest obligation itself is a relatively recent return, not a rule that's been continuously in effect; 2026's 0% figure means no payment is due this year, but the underlying obligation to check and calculate the rate annually hasn't gone away.

Even when the calculated rate is 0%, a landlord still generally has to pay any interest owed annually, or within 15 days of a tenancy under a year ending, along with a statement showing the interest calculation method used.

[Cite: Security Deposit Interest Rate Regulation, Alta. Reg. 190/2004]

Since 0% interest means $0 owed for 2026 specifically, the practical payment amount for that year is nothing; but a landlord managing a tenancy that spans multiple years, some at a positive rate, some at 0%, still needs to track and document each year's applicable rate separately rather than assuming the whole tenancy nets out to zero.

A tenancy that started in 2024 and continues through 2026 crosses 3 different annual rates, 1.6%, 0.5%, and 0%, each applying to the portion of the deposit held during that specific calendar year.

[Cite: Security Deposit Interest Rate Regulation, Alta. Reg. 190/2004]

A landlord calculating total interest owed on a longer-running tenancy needs to apply each year's rate to the relevant period separately, rather than averaging the rates together or assuming the most recent year's rate applies retroactively to earlier years when a different rate was actually in effect.

The requirement to pay accrued interest annually means a landlord with ongoing tenancies faces this calculation and payment obligation every year the tenancy continues, not just once at move-out.

[Cite: Security Deposit Interest Rate Regulation, Alta. Reg. 190/2004]

A landlord managing multiple long-term tenancies benefits from a standing annual process, checking the current year's published rate and calculating and documenting any amount owed, rather than treating this as something to sort out only when a tenant eventually moves out.

Since the rate depends on a specific, point-in-time GIC figure the province tracks and publishes, a landlord should confirm the current year's applicable rate directly against Alberta's official annual security deposit interest rate page rather than relying on an approximate recollection of a prior year's figure.

[Cite: Alberta.ca, Annual Security Deposit Interest Rate page]

A landlord assuming this year's rate matches last year's, without checking the current publication, risks miscalculating what's actually owed, especially in a year like this one where the rate shifted all the way down to 0%.

Alberta provides an online security deposit interest rate calculator specifically to help landlords and tenants work through what's owed, particularly useful for a tenancy spanning more than one calendar year at different rates.

[Cite: Alberta.ca, Security Deposit Interest Rate Calculator]

A landlord handling a multi-year tenancy should use that official calculator rather than attempting the year-by-year math manually, since it's built specifically to apply each year's correct published rate to the relevant portion of the deposit automatically.

Since the rate is recalculated fresh each November based on the then-current GIC figure, a landlord can't assume 2027's rate will stay at 0% simply because 2026's did.

[Cite: Security Deposit Interest Rate Regulation, Alta. Reg. 190/2004]

A landlord planning ahead should treat each year's rate as independently determined, checking the province's published figure once it's announced rather than assuming continuity with whatever the current or prior year's rate happened to be.

The practical starting point is confirming that no security deposit interest payment is due for the 2026 calendar year specifically, while still documenting that confirmation for any tenancy record that might later be reviewed.

For any multi-year tenancy spanning 2024, 2025, and 2026, running the full calculation through Alberta's official calculator, applying each year's distinct rate to its corresponding period, keeps the record accurate rather than assuming the current 0% rate applies retroactively to earlier years when a positive rate was actually in effect.