Interest on Deposit: Tenant Rights in Germany
Many tenants in Germany wonder when moving out how interest credited on the rental deposit must be correctly calculated and paid out. The deposit is often kept in a special deposit account; interest accrued there is due to the tenant but must be shown transparently in the final settlement. Errors in interest calculation, non-disclosed accounts or missing evidence can be contested. This article explains clearly which obligations landlords have, which deadlines apply, which forms and receipts you should collect and when an application to the local court may become necessary. The information helps you check your deposit settlement and, if necessary, enforce legitimate claims.
How are interest payments calculated?
The rental deposit may be kept in a separate account according to §551 BGB; the interest accrued there belongs to the tenant.[1] The calculation is based on the interest actually credited to the deposit account. Landlords must show the interest in the final settlement and prove on which account the deposit was held.
Practically this means: request the bank statement showing credited interest and compare the sums with the landlord's settlement. Pay attention to periods, interest rates and any bank fees retained.
- Request bank or account statements to prove credited interest.
- Observe deadlines: respond within months after receiving the settlement, otherwise claims may be harder to enforce.
- Request a written settlement; ask for a clear breakdown of principal and interest.
What to do in case of incorrect settlement?
Set a written deadline for the landlord to correct and attach the missing evidence. If that fails, you can assert your claims at the local court; tenancy disputes are heard there.[2]
In major disputes, BGH decisions also play a role; relevant rulings can influence the interpretation of interest and accounting obligations.[3]
FAQ
- Who is entitled to interest?
- The tenant is entitled to the interest actually accrued on the separate deposit account; the landlord may not withhold these.
- When can I demand interest?
- If interest is missing or miscalculated in the final settlement, you should ask the landlord in writing to correct it and submit evidence.
- What if the account information is missing?
- Request the information in writing and set a deadline; if the information is not provided, the local court can order the production of evidence.
How-To
- Check the lease and account statement for interest evidence.
- Request a detailed deposit settlement in writing.
- Collect proofs: bank statements, handover protocol and correspondence.
- Set an appropriate deadline and, if necessary, file a claim at the local court.
Help and Support
- BGB §551 — Deposit regulation
- Federal Court of Justice (BGH) — Case law
- Federal Ministry of Justice — Information
