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Last updated: April 2026Researched by DepositHawk Research Team

California Does Not Require Deposit Interest

California landlords are not required to pay interest on your security deposit. But that does not mean they can do whatever they want with it.

California does not require landlords to pay interest on security deposits. However, landlords must return the deposit within 21 days of move-out under Cal. Civ. Code § 1950.5.

Cal. Civ. Code § 1950.5

Your Rights

What Your California Landlord Does Owe You

Interest or not, California law gives you real protections on your security deposit:

  • 21-day return deadline. Your landlord has 21 days after you move out to return your deposit or provide an accounting of deductions.
  • Itemized statement required. Your landlord cannot just keep part of your deposit — they must provide a written, itemized list of every deduction and its amount within 21 days.
  • Penalties for violations. If your landlord misses the deadline or makes illegal deductions, California courts can award you up to 2x the wrongfully withheld amount.
  • Pre-move-out inspection. California requires your landlord to offer a walk-through inspection before you move out, giving you a chance to fix issues before they deduct.

California landlords must return security deposits within 21 days of move-out under Cal. Civ. Code § 1950.5. Violations can result in up to 2x the wrongfully withheld amount.

Cal. Civ. Code § 1950.5

Full State Law

California Security Deposit Law — Full Breakdown

Return deadlines, allowed deductions, penalty multipliers, small claims limits — everything you need to know about California deposit law is on one page. Read the full California security deposit law breakdown.

Frequently Asked Questions

Frequently Asked Questions

Does California require landlords to pay interest on security deposits?

No. California does not require landlords to pay interest on security deposits. However, your landlord must still return your deposit within 21 days of move-out under Cal. Civ. Code § 1950.5.

What is my landlord required to do with my deposit in California?

Your California landlord must return your deposit within 21 days after you move out. They must provide an itemized statement listing any deductions. Failure to comply can result in penalties.

What happens if my California landlord keeps my deposit?

If your landlord fails to return your deposit within 21 days, you can sue in small claims court for up to 2x the wrongfully withheld amount. California small claims courts handle cases up to $12,500.

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DepositHawk is not a law firm and does not provide legal advice. Information and documents are for informational purposes only. No attorney-client relationship is created. Consult a licensed attorney for advice specific to your situation.