Your security deposit is not the same as your last months rent. You must pay rent for each month during the term of your tenancy. If you do not, your landlord may serve you with a 3-day notice to pay rent or quit and follow it up with an unlawful detainer. The security deposit is for the landlord’s benefit, not yours. You may, however, terminate a month-to-month tenancy mid-month. For the last month you would only owe pro-rated rent provided you give the 45 day notice you suggest.
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Unless there is a lease or rental agreement which provides otherwise, you can give 45 days written notice to terminate a periodic tenancy mid-month.
You will still have to pay rent on the date of the month the rent is due (usually the 1st). The fact that you have a security deposit equal to one month's rent is not relevant. You still have to pay rent for both months. You are entitled to a refund of the 1/2 month of rent if you move out by the 15th. You are also entitled to receive a refund of your deposit within 21 days after you move out, pursuant to California Civil Code section 1950.5.
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You can give 45 days notice to terminate a month to month lease. Absent the landlord's consent, you cannot use your security deposit as rent.
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