Where a deposit has been made pursuant to Section 386, the court shall, upon the application of any party to the action, order such deposit to be invested in an insured interest-bearing account. Interest on such amount shall be allocated to the parties in the same proportion as the original funds are allocated.
§ 386.1.Investment of Deposit
Title 3. Of the Parties to Civil Actions · Chapter 6. Interpleader · Last amended 1979 · Last verified July 28, 2026
In one sentenceSection 386.1 requires the court, on any party’s application, to order money deposited under an interpleader action to be placed in an insured interest-bearing account, with the interest allocated among the parties in the same proportion as the underlying funds.
Full Text of § 386.1
Plain-English Summary
Money deposited with the court in an interpleader action under § 386 can sit for months or years while the competing claims get sorted out. Section 386.1 makes sure that money does not sit idle. On the application of any party to the action, the court must order the deposit invested in an insured interest-bearing account.
When the case is finally resolved, the interest earned is allocated among the parties in the same proportion as the original deposit itself — whoever ends up entitled to a share of the principal gets the matching share of the interest it earned while the case was pending.
Frequently Asked Questions
Does money deposited in an interpleader case earn interest?
Yes. § 386.1 requires the court, upon application, to order the deposit invested in an insured interest-bearing account rather than left uninvested.
Who has to ask for the deposit to be invested?
Any party to the interpleader action may apply, and the court must then order the investment.
How is the interest divided once the case ends?
The interest is allocated among the parties in the same proportion as the original deposited funds are allocated among them.
Amendment History
Amended by Stats. 1979, Ch. 173.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
Also known as: ccp 386.1 interest on interpleader depositinterpleader funds interest californiacourt deposit investment account interpleader