The interest rate for 2023 tenant security deposits is set at 2%, effective Saturday, Jan. 1, 2023. This is the mathematical average of the one-year certificate of deposit from the top three financial institutions in Boulder, based on market share data as of Dec. 14, 2022.
This calculation has been prepared in accordance with Ordinance 7320, which was adopted on Feb. 17, 2004. Relevant code language may be found in Chapter 12-2: Landlord-Tenant Relations of the Boulder Revised Code (sections 12-2-2 and 12-2-4 through 12-2-7).
Calculation details for your reference: The rate of interest to be paid upon the refund of security deposits shall be determined by the manager by averaging the interest rates being paid on one-year certificates of deposit by three banks doing business within the city that, in the view of the manager, provide indicia of being significant participants in the local banking industry. This average interest rate will be calculated as of December 15 of each year or, if that date falls on a weekend or holiday, on the first business day thereafter. The manager’s determination of the rate shall be final. The rate shall be published in a newspaper of general circulation or posted on a city internet site that is accessible to members of the general public. The average interest rate so determined shall be rounded no more than two places to the right of the decimal point. It shall become the rate of interest paid on any security deposit that is provided to a landlord during the calendar year starting on January 1 of the year immediately following the date of the manager’s determination.