The City of Boulder has calculated the interest rate for tenant security deposits for the 2025 calendar year to be 2.92 percent, effective Jan. 1, 2025. 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 December 16, 2024.
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).
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. The final rate used in the calculation also applies to the extra 30-60 day period that the landlord holds the deposit after the lease expires while the reconciliation takes place. 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.