Interest on the Kaution: what you are owed and how to check it
Why the interest on your Kaution (deposit) belongs to you, how to check the amount and how it is taxed.
The landlord must invest a cash Kaution separately from their own money so that it earns interest. That interest belongs to you. Ask for the Kaution back with interest, and ask for proof of the account.
How to get your interest
These steps are usually enough to make sure the interest is not forgotten.
- 1
Ask about the account
Ask the landlord which bank and which account holds the Kaution.
- 2
Ask for an account statement
When you move out, ask for a statement that shows the Kaution and the interest.
- 3
Ask for it in writing
Ask for the Kaution back in writing, and say explicitly “with interest”.
- 4
Check the landlord's settlement
If the interest is missing from the landlord's settlement of the Kaution, ask about it directly.
- 5
Keep the tax certificate
If your capital income is small, you get the withheld tax back. Keep the tax certificate for this.
- 6
Exception: student and youth residences
In a student or youth residence, the Kaution does not have to earn interest.
Why this matters
You get the interest back with one sentence in a letter. Whether you get the rest of the Kaution back depends on whether you can show what the flat looked like when you moved in.
General information, not legal advice.
Frequently asked questions
Do I get interest on my rental deposit?
Yes, you get interest on a cash Kaution. The landlord must invest it so that it earns interest, and the interest belongs to you (§ 551 Abs. 3 BGB).
What if the landlord never invested the Kaution?
If the landlord never invested the Kaution, the widely held view is that they still owe you the interest a proper investment would have earned. Ask for that amount in writing together with the Kaution.
Is there interest on a deposit guarantee (Kautionsbürgschaft)?
No, a deposit guarantee earns you no interest. With a guarantee you pay no money in, so no interest builds up for you.
Also in this topic: Objecting to a Kaution settlement: model letterNew-for-old deduction: what tenants really pay for damageDrill holes at move-out: must you fill them?Kaution withheld for the Nebenkostenabrechnung: how much is allowed?All guides: Deposit
Moving in or out soon?
Record every room, and you have proof of the flat's condition when the Kaution is settled. BildProof guides you through the flat and creates a structured condition report.
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