Security Deposit Interest in Germany: Tenant Rights

Many tenants in Germany notice at move-out or during annual statements that interest on the security deposit was not correctly reported or credited. This practical guide explains in plain language what claims you have as a tenant, which documents to collect, and how to demand a correction or payout in writing. We show deadlines, typical wording and how a visit to the local court proceeds if the landlord does not respond. The goal is that you can confidently check whether interest is missing, how to prove what you are owed, and which official statutes in Germany provide the legal basis.

What tenants in Germany need to know

The legal basis for the security deposit is in the German Civil Code (BGB). The deposit formally belongs to the tenant; interest that accrues on a separate deposit account is generally attributable to the tenant. If the landlord withholds interest or does not show interest credits, you can demand evidence and request payout.^[1]

Which documents help

• Bank statements for the deposit account showing interest earnings and posting periods.
• Written security deposit agreement in the lease, especially clauses on interest.
• Move-in and move-out inspection reports and receipts for repairs or deductions.
• Correspondence with the landlord: demands, reminders and responses.

How to claim interest back

• Step 1: Send a written demand to the landlord with a deadline (e.g. 14 days). State the billing period, amount and attach copies of bank statements.
• Step 2: Set a clear deadline and state you will consider legal action at the local court if there is no response.
• Step 3: If the landlord does not respond or refuses, you can file a lawsuit at the competent local court; the procedure follows the Code of Civil Procedure (ZPO).^[2]
• Step 4: Present all documents in order: bank statements, lease, inspection report and correspondence.

FAQ

1. Do I have a claim to interest on my security deposit?

Yes, interest that accrues on a separate deposit account generally belongs to the tenant; the BGB provides the details.^[1]

2. What deadline should I include in my written demand?

Commonly 10–14 days for payment or a statement; document the date and method of sending the demand.

3. Which court handles disputes?

Rental disputes are usually handled by the competent local court (Amtsgericht) in the first instance; higher instances include the regional court and possibly the Federal Court of Justice (BGH) on appeal.^[3]

4. Which forms or templates are useful?

An informal but written demand letter with specific amounts and attached bank statements is often sufficient; for lawsuits use the claim form according to ZPO rules.^[2]

How-To

1. Gather all relevant documents: bank statements, lease, inspection report and previous correspondence.
2. Draft a written payment demand with a deadline (e.g. 14 days) and send copies of the documents by registered mail.
3. Wait for the deadline; document every communication and keep proof of receipt.
4. If the landlord fails to pay, prepare a claim at the competent local court and attach all evidence.^[2]

Help and Support / Resources

• Bürgerliches Gesetzbuch (BGB) § 535 ff. – gesetze-im-internet.de
• Code of Civil Procedure (ZPO) – gesetze-im-internet.de
• Federal Court of Justice (BGH) – bundesgerichtshof.de

1. [1] Bürgerliches Gesetzbuch (BGB) § 535 ff. – gesetze-im-internet.de
2. [2] Zivilprozessordnung (ZPO) – gesetze-im-internet.de
3. [3] Bundesgerichtshof (BGH) – bundesgerichtshof.de