VIDEO: Calculate the interest for a rental deposit

The rental deposit is freely negotiable. However, it can be three times the net rent excludingrent without ancillary and operating costs). The landlord is not allowed to leave the deposit in his living room cupboard. Rather, he has to invest them with interest.

The rental deposit is to be created in a secure manner

• Since the rental deposit is always the cause of disputes between the landlord and tenant, the law in § 551 BGB regulates the creation of rental securities.
• According to the law, the landlord is obliged to pay the rental deposit into a special deposit account at a bank or savings bank. In particular, he must separate the rental deposit from his other private assets. Only then is the rental deposit secure in the event of the landlord's bankruptcy.

Interest increases security

• The law stipulates that the landlord must invest the rent deposit at the "interest rate customary for savings deposits with a three-month notice period". The interest rates for such savings deposits are naturally low (ci. 0.5 - 2%), but are relatively safe to use.
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• In addition, the law stipulates that the interest is added to the deposit account, thus increasing the rental deposit as such and always earning interest. The interest increases the overall security. They are always due to the tenant, at least until the landlord calls on the rent deposit.


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Let the bank calculate the interest

• If you now want to calculate the interest as a tenant or as a landlord, go to the bank with the relevant savings book and have the income calculated there.
• These are immediately credited to the savings account at regular intervals.

So do the math yourself

• You can of course also take the trouble to calculate the interest rate yourself. To do this, you need to know the interest rate at which the rental deposit is invested.
• Example: amount of the rental deposit € 1000, interest rate 1%. This results in interest income of € 10 after one year. The bank retains 25% withholding tax (€ 2.50) from this (unless the bank has received an exemption order from the tenant) and pays it to the tax office. The rental deposit is then € 1007.50 for one year. This amount pays 1% interest in the second year, resulting in rental income of € 10.075. After deducting the withholding tax, a further € 7.55 is added to the rental deposit account.