Secure Deposit Account for Tenants in Germany

Security Deposits & Accounts 2 min read · published September 07, 2025
A legally secure deposit account protects tenants from losses, simplifies later accounting and secures claims against the landlord in case of dispute. Especially in Germany, the rental deposit is regulated by law, for example by §551 BGB.[1] so planning is important. This guide explains in practical terms how parties set up a separate interest-bearing deposit account, which clauses should be in the lease, and which documents and deadlines to observe. I explain simple steps for documentation, secure handover receipts and what to do in case of repayment or retention. The aim is that you as a tenant plan key decisions, minimize risks and are well prepared in a dispute.

What is a deposit account?

A deposit account is a separate account where the security deposit should be kept safe and segregated from the landlord's private assets. This way interest and repayment claims remain clearly provable. In Germany, §551 BGB protects the interests of both parties and prescribes certain limits and obligations.[1]

What it is for

  • Security for landlords against damage or rent arrears.
  • Proof for tenants upon correct return and interest claims.
  • Separation of assets to avoid creditor access.
Keep payment receipts and account statements for at least three years.

How to open a legally secure deposit account

Plan the account opening before signing the lease or as soon as the deposit is due. Clarify in the rental contract whether the account is accessible to the tenant or held in trust by the landlord, and agree on interest and repayment procedures.

  • Gather ID, lease and proof of payment.
  • Open a separate current or savings account with the purpose "deposit" noted in the payment reference.
  • Document the deposit with a receipt or transfer confirmation.
Respond within legal deadlines to avoid losing claims.

If the landlord does not return the deposit

If repayment is missing, document defects, correspondence and deadlines and demand payment in writing with a deadline. If there is no response, you can consider legal action; many tenancy cases start at the local court and procedures follow the Civil Procedure Code.[2] For those unable to pay court costs, legal aid (prosess costs assistance) can be applied for; forms and guidance are available from the Federal Ministry of Justice.[3]

In most cases, a deposit repayment is resolved by evidence and a clarifying letter without court proceedings.

FAQ

How high can the deposit be?
The statutory limit is usually three times the net cold rent; exceptions should be checked in the lease.
Who receives the interest?
Interest legally accrues to the depositor but is often attributed to the deposit and considered on repayment.

How-To

  1. Check the lease for deposit amount and interest agreements.
  2. Open a separate account clearly labelled for the deposit.
  3. Secure payment receipts, account statements and all correspondence digitally and on paper.
  4. If payment is withheld, set a formal deadline by letter or email and document everything.

Help and Support / Resources

  1. [1] BGB §551 - Gesetze im Internet
  2. [2] ZPO - Gesetze im Internet
  3. [3] BMJV - Federal Ministry of Justice and Consumer Protection

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Bob Jones
Bob Jones

Editor & Researcher, Tenant Rights Germany

Bob writes and reviews tenant law content for various regions. They’re passionate about housing justice and simplifying legal protections for tenants everywhere.

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