The City of Boulder has calculated the interest rate for tenant security deposits for the 2019 calendar year to be 0.75 percent, up from 0.16 percent. The new rate is effective Sunday, Jan. 1, 2019, and is the highest rate since 2009.
The tenant security deposit interest rate is recalculated each year in accordance with Ordinance 7320, which was adopted on Feb. 17, 2004. The rate is the average of the one-year certificate of deposit from the top three financial institutions in Boulder, based on market share data as of Dec. 15, 2018.
The computation formula of the interest due for residential security deposits in the City of Boulder is: Multiply the entire amount of the security deposit by the appropriate multiplier for that year, divide that number by 12 to obtain a monthly percentage amount due, and then multiply that monthly number by the number of months the deposit was in the landlord’s possession, including the 30 or 60 days after the end of the lease. The rate in effect at lease signing is in effect for that lease period, until termination or renewal for another period. Month to month leases are considered renewed each month, so the interest rate due will change on the first of every calendar year for month to month leases.