Deposit Interest for Tenants: Germany Guide

Many tenants in Germany are unsure how interest credits on the security deposit account are correctly calculated and paid out when moving out. This article explains in simple terms which mistakes commonly occur — such as incorrect interest calculation, missing documentation or unclear deductions — and how you as a tenant can practically enforce your rights. You will learn which documents are important, which deadlines apply, how to check an account correctly and which official forms and courts are responsible if the landlord does not cooperate. The goal is that you receive the deposit including correct interest when moving out and avoid or effectively resolve disputes.

What tenants need to know about interest credits

The deposit is usually kept separate from the landlord's assets; interest is generally earned on this account and belongs to the tenant. Relevant legal bases can be found in the BGB regarding the landlord's duties concerning the deposit ^[1]. If the landlord does not return the deposit with correct interest, tenants can demand back payment or consider legal steps.

Common mistakes

• Incorrect or missing interest calculation, for example when only nominal amounts are used instead of actual account yields.
• Incomplete documentation: missing account statements, rent payments or handover records make proof difficult.
• Unauthorized deductions from the deposit without a detailed statement.
• No deadline set before legal steps — a clear payment period often helps.
• Refusal to disclose the deposit account or lack of access to records.

How to proceed

Practical steps for tenants

1. Check the deposit agreement in the lease and all account statements since the deposit was paid.
2. Request in writing a complete settlement of the deposit including interest calculation and evidence; set a reasonable deadline.
3. If the deadline passes, remind in writing and give about 14 days.
4. If the landlord remains uncooperative, prepare a lawsuit at the competent local court or use the payment order procedure; inform yourself about procedures and costs.
5. Collect evidence: account statements, payment confirmations, handover protocols to substantiate claims.

FAQ

Who calculates the interest on the deposit?

The landlord or the depository institution must show the interest earned on the deposit account and attribute it to the tenant upon payout.

What deadlines apply for repayment including interest?

There is no uniform federal deadline; in practice settlements often occur within 1–6 months after the handover. Set a clear written deadline for the landlord.

Which authorities/courts are responsible if the landlord does not pay?

Disputes about deposits are dealt with civilly at the local court; higher instances are the regional court and possibly the Federal Court of Justice (BGH) for questions of fundamental importance ^[2].

How-To

1. Account check: request account statements since the deposit payment and compare the stated interest figures.
2. Written claim: draft a claim with a concrete amount and deadline and document the dispatch.
3. Set deadlines: give a 14-day grace period before taking further steps.
4. Legal route: if disagreement persists, file suit at the local court or use the payment order; preliminary information is available under the ZPO ^[3].
5. Enforcement: use evidence and, if necessary, witnesses or expert credit entries to substantiate your claim.

Help and Support

• Bürgerliches Gesetzbuch (BGB) — gesetze-im-internet.de
• Zivilprozessordnung (ZPO) — gesetze-im-internet.de
• Bundesgerichtshof (BGH) — Decisions

1. [1] Gesetze im Internet: Bürgerliches Gesetzbuch (BGB)
2. [2] Gesetze im Internet: Zivilprozessordnung (ZPO)
3. [3] Bundesgerichtshof (BGH) - Decisions in tenancy law