Security Deposit: Check Interest in Germany

As a student, the security deposit is often a large expense. Before you sign the rental agreement, check whether interest credits are recorded correctly and can be accounted for when the deposit is returned. This article explains in plain language which proofs are useful, which legal bases apply in Germany and how you as a tenant can document claims plausibly. You will learn which account records are helpful, how to draft a written request and which courts and forms are responsible in disputes. There are also deadlines and practical tips on collecting bank statements and making formal claims correctly. At the end you will find a short guide and answers to frequently asked questions.

When interest on the deposit applies

The security deposit must be kept separate from the landlord's assets; interest usually belongs to the tenant. Legal foundations can be found in the German Civil Code (BGB) on tenancy obligations and the landlord's duties ^[1].

Gathering evidence

Good evidence makes resolution easier: collect bank statements, payment receipts and correspondence with the landlord. Pay attention to account names, interest credits, dates and amounts.

• Bank statements for the deposit account (document)
• Payment receipts and transfer confirmations (proof)
• Tenancy agreement and written agreements on the deposit (notice)
• Correspondence with the landlord, emails or letters (record)

How to make claims and observe deadlines

Draft a clear written request for repayment of the deposit including interest credits and a deadline for completion. If the landlord does not respond, collection proceedings and court action are possible; tenancy disputes are usually handled in the first instance by the local court (Amtsgericht) ^[2].

• Formal written request to the landlord with a deadline (notice)
• Itemize the requested interest amounts and reconcile with bank statements (rent)
• Initiate collection proceedings or a lawsuit if necessary (court)

FAQ

Who is entitled to the interest on the deposit?

Interest usually belongs to the tenant unless a valid agreement states otherwise.

How long can the deposit account remain open?

The deposit can remain during the tenancy; after the tenancy ends the landlord must settle and return the remaining deposit including interest.

What if the landlord withholds interest?

Document evidence, send a written demand and consider collection proceedings or filing a claim at the local court ^[2].

How-To

1. Collect all relevant bank statements and transfer receipts (document).
2. Write a formal demand to the landlord with a clear deadline (notice).
3. Request a detailed statement of interest amounts and supporting documents (rent).
4. If the landlord does not respond, consider collection proceedings or a lawsuit at the local court (court).
5. Seek legal advice or contact the competent court if you are unsure (call).

Help and Support / Resources

• Local Amtsgericht (court)
• Gesetze im Internet: BGB §§ 535–538 (info)
• Federal Court (Bundesgerichtshof) for tenancy law rulings (court)

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1. [1] Gesetze im Internet: BGB §§ 535–538
2. [2] Justizportal: Information on courts and jurisdiction
3. [3] Federal Court (Bundesgerichtshof): Decisions in tenancy law