How to Record a P.E.I. Security Deposit Paid by e-Transfer
A P.E.I. landlord workflow for recording an e-Transfer security deposit, receipt, interest-bearing account, inspections, return, or claim.
To record a Prince Edward Island security deposit paid by Interac e-Transfer, create one deposit-ledger entry linked to the tenancy agreement, completed bank deposit, written receipt, interest-bearing account, condition reports, interest calculation, and final return or claim. Record the payer, unit, amount, receipt date, Interac reference, bank settlement, account movement, and every later change without treating the deposit as ordinary rent.
P.E.I. law requires more than keeping the e-Transfer email. The deposit is held in trust, must go to the required account within two banking days, earns prescribed interest, and must normally be returned with interest or claimed against within 15 days after the tenancy ends or is assigned.
What Are the P.E.I. Security-Deposit Rules?
Section 14 of P.E.I.'s Residential Tenancy Act sets these core rules:
- A landlord may require a security deposit when entering into a tenancy agreement.
- The deposit is not the landlord's asset; it is held in trust.
- The maximum is one week's rent when rent is paid weekly, or one month's rent in other cases.
- A landlord cannot require more than one security deposit for the same tenancy.
- The agreement cannot say the landlord automatically keeps some or all of it at the end.
- The landlord must give a written receipt stating the amount, date received, rental unit, and residential property.
- Within two banking days, the landlord must place the deposit in an interest-bearing account at an authorized financial institution in P.E.I.
- A landlord with three or more rental units must use a trust account exclusively for security deposits.
The current annual rate should be checked when calculating a return. The P.E.I. Residential Tenancy Office's security-deposit interest table lists 2.75% for 2026 and provides an interest calculator for deposits held across periods.
What Should the Deposit Ledger Include?
Keep one tenancy-level record with:
- Landlord, tenant, rental-unit, and residential-property details
- Tenancy start, rent frequency, rent amount, and lawful deposit maximum
- Every payer's displayed name when several people contribute
- Amount, notification date, bank settlement date, status, and direction
- Interac reference number and payment note when available
- Written-receipt number and delivery date
- Date and account used for the interest-bearing deposit
- Starting and ending condition-report references
- Interest periods, rates, calculation date, and accrued amount
- Any written tenant agreement, prior Director order, or Form 2B claim
- Amount returned or retained, return method, recipient, reference, and settlement date
- Reconciliation date and unresolved exception
The ledger connects the payment trail to the legal deposit lifecycle. It does not replace the agreement, receipt, bank evidence, inspections, or Rental Office documents.
How Do You Record the Deposit From Receipt to Return?
1. Confirm the agreement, rent, and maximum
Before accepting the transfer, confirm that the tenancy agreement identifies the security deposit and that the amount does not exceed the applicable weekly or monthly limit. The Act prohibits requiring the deposit at a later point in the tenancy and prohibits more than one security deposit.
Keep rent and the security deposit as separate obligations even if the tenant sends one combined payment. P.E.I. has specific rules for excess rent and deposit overpayments, so do not relabel an excess amount informally.
2. Capture the transfer and confirm settlement
Record the notification's payer, amount, date, status, message, and reference. Then confirm in the financial institution's known app or website that the funds reached the intended account.
Do not count a pending request, reminder, or cancelled transfer as a received deposit. Keep the status history and link replacement transfers rather than overwriting the failed event.
3. Issue the written security-deposit receipt
After receipt, provide the tenant with a written receipt that states the amount, date received, rental unit, and residential property. An Interac confirmation can support the payment trail, but it is not a substitute for the landlord's statutory receipt.
If a roommate, family member, employer, or other third party sent the money, preserve that payer name while also identifying the tenant and tenancy to which the receipt applies.
4. Move the money to the required account
Record the deadline and actual movement into the P.E.I. interest-bearing account. The Act gives the landlord two banking days after receipt. Landlords with three or more rental units must use an exclusive security-deposit trust account.
Reconcile the total held in the ledger with the account balance. Do not mix rent, operating cash, owner withdrawals, or another tenant's activity into the deposit record.
5. Complete the starting inspection
Sections 18 and 38 of the Act require condition inspections at the start and end of a tenancy. At the start, the landlord must offer at least two reasonable opportunities, complete the approved written report, obtain signatures when both parties participate, and give the tenant a copy.
Link the signed report and dated supporting photos to the deposit ledger. Payment evidence does not establish the unit's condition.
6. Track interest and changes during the tenancy
Maintain the principal separately from accrued interest. Use the official rates for each calendar period rather than applying the current rate to the entire tenancy.
If the property changes owners, keep the transfer of the deposit and interest auditable. The Act passes the deposit obligations to the new landlord and requires written information to the tenant about the amount held and interest credited.
7. Complete the ending inspection and decision
At the end, offer the required inspection opportunities, complete the approved report, give the tenant a copy, and connect any claimed damage to the starting condition and supporting evidence. Ordinary wear, unpaid rent, damage, cleaning, and other claims require their own evidence; the payment notification proves none of them.
The landlord normally has 15 days after the tenancy ends or is assigned to:
- Return the deposit with calculated interest, or
- File a Landlord Application to Determine Dispute with the Residential Tenancy Office to claim against it.
The Residential Tenancy Office security-deposit FAQ identifies Form 2B for a landlord's claim. The office's forms page should be checked for the current form and instructions.
8. Record the return, agreement, or order
Section 40 allows electronic payment or transfer as one way to repay the deposit. Verify the tenant's current destination through a known contact channel, send the principal and applicable interest, and preserve the outgoing reference plus bank settlement.
A landlord may retain an amount without a new application only in the specific situations set out in the Act, including a qualifying prior Director order that remains unpaid or a written agreement made with the tenant at the end of the tenancy. Record the exact authority and amount rather than marking the deposit “kept.”
Missing the 15-day requirement can prevent a landlord from making a claim and can lead to an order to pay double the deposit. Get legal advice or contact the Residential Tenancy Office for a disputed or unusual case.
How Should You Handle Common P.E.I. Deposit Edge Cases?
Rent and deposit arrive in one transfer
Preserve the original transfer total, then make a written allocation between rent and deposit. Issue the security-deposit receipt for the deposit portion and place that amount in the required account. Do not create two bank deposits that never occurred.
Several people fund one deposit
Record each transfer and payer, but maintain one tenancy-level deposit balance subject to the single-deposit maximum. The sum of the parts is the deposit; each notification is a contribution to it.
The tenant overpays
Do not silently keep or reclassify the excess. Section 14 addresses an excessive security deposit and money received above rent. Confirm the required treatment with the Residential Tenancy Office and document any repayment or allocation.
The sender name is unfamiliar
Leave the money unmatched until the tenant and payer confirm the purpose through a known channel. Use the unknown e-Transfer sender workflow before issuing a receipt or returning funds.
The deposit return is sent by e-Transfer
Treat the return as a new outgoing transaction. Record the recipient, amount, principal, interest, send date, status, reference, and bank settlement. A sent notification alone does not prove the tenant received the completed return.
How TransferLog Helps Organize P.E.I. Deposit Notifications
TransferLog organizes transaction details detected in supported Interac e-Transfer notification emails from connected Gmail, Outlook, or iCloud inboxes. You can review sent and received records, search and filter them, assign categories, and export CSV or PDF on the Pro plan.
Use the export to:
- Find deposit receipts and later return notifications.
- Categorize them by property or tenancy.
- Review payer, amount, date, direction, status, and reference.
- Match each row to the bank and deposit ledger.
- Preserve the reconciled export with receipts, inspections, interest, and Rental Office records.
TransferLog does not access bank accounts, create statutory receipts, hold trust money, calculate interest, complete inspections, track the 15-day deadline, or file a Form 2B. It supplies the notification side of a broader landlord record.
For monthly rent rather than a security deposit, use the rent-payment tracking workflow.
Official Sources
- P.E.I. Residential Tenancy Act
- P.E.I. Residential Tenancy Regulations
- Residential Tenancy Office: Security Deposits FAQ
- Residential Tenancy Office: Security-deposit interest rates
- Residential Tenancy Office: Forms
- Interac e-Transfer Terms of Use
This article provides general record-keeping information, not legal advice. Confirm the current Act, regulations, rates, forms, and instructions for the tenancy.
Organize supported P.E.I. deposit notifications with TransferLog. Start free; export on Pro, then reconcile the file with the bank and tenancy records.