Interest on rental deposits and where they are held
Germany, Austria and Norway keep the deposit away from the landlord in a bank account or savings book, and the yield belongs to the tenant. Ontario skips the account and instead makes the landlord pay interest every year at the rent-increase guideline rate. England requires the deposit to sit in an authorised scheme, but the ingested sections do not say whether it earns interest, and Spain mentions interest only when the landlord refunds late. This guide also covers the question of where a deposit must be held.
Scope of this guide
Canada: the Canada Labour Code (federal sector) and the Ontario statutes that LawAsked has loaded. Other provinces are not compared.
| Country | Interest | Where the deposit is held |
|---|---|---|
| Austria | Paid back to the tenant with the deposit | Interest-bearing savings book, or an equally safe separated investment |
| Canada | Landlord pays the tenant interest every year at the guideline rate | |
| Germany | Earnings belong to the tenant and add to the deposit | Bank, apart from the landlord's assets, at the usual savings rate |
| Spain | Legal interest only if the refund is late (after 1 month from the keys) | |
| Norway | Tenant may have earned interest paid out during the tenancy | Separate account in the tenant's name at a financial institution |
| United Kingdom | Authorised tenancy deposit scheme from receipt; scheme steps within 30 days |
Country by country
Austria
- Rule
- Mietrechtsgesetz § 16b(1)-(2)
- The investment duty applies when the deposit is handed over as money rather than as a savings book.
- Other forms of investment are allowed only if they give equal interest and deposit insurance and keep the money apart from the landlord's assets.
hat sie der Vermieter auf einem Sparbuch fruchtbringend zu veranlagenNach Ende des Mietvertrags hat der Vermieter dem Mieter die Kaution samt den aus ihrer Veranlagung erzielten Zinsen unverzüglich zurückzustellen Canada
- Rule
- Residential Tenancies Act, 2006 (Ontario) s. 106(6)
- The rate is the rent increase guideline under section 120 in effect when payment falls due.
- If the landlord does not pay, the tenant may deduct the amount from a later rent payment (s. 106(9)).
- The ingested text does not require a separate account.
A landlord of a rental unit shall pay interest to the tenant annually on the amount of the rent deposit at a rate equal to the guideline determined under section 120 that is in effect at the time payment becomes due. Germany
- Rule
- Bürgerliches Gesetzbuch § 551(3)
- The parties may agree another form of investment, but it must still be separate from the landlord's assets.
- No duty to pay interest for housing in a student or youth hostel.
- An agreement that disadvantages the tenant is void (§ 551(4)).
Der Vermieter hat eine ihm als Sicherheit überlassene Geldsumme bei einem Kreditinstitut zu dem für Spareinlagen mit dreimonatiger Kündigungsfrist üblichen Zinssatz anzulegen.In beiden Fällen muss die Anlage vom Vermögen des Vermieters getrennt erfolgen und stehen die Erträge dem Mieter zu.Bei Wohnraum in einem Studenten- oder Jugendwohnheim besteht für den Vermieter keine Pflicht, die Sicherheitsleistung zu verzinsen. Spain
- Rule
- Ley de Arrendamientos Urbanos, art. 36(4)
- The statute is silent in the ingested text on interest earned during the tenancy and on where the deposit is kept.
devengará el interés legal, transcurrido un mes desde la entrega de las llaves por el mismo sin que se hubiere hecho efectiva dicha restitución. Norway
- Rule
- Husleieloven § 3-5
- Neither party may dispose of the deposit alone while the tenancy lasts.
- The landlord pays the cost of opening the account.
Det deponerte beløp skal settes på særskilt konto i leierens navn med vanlige rentevilkår i finansinstitusjonLeieren kan likevel kreve opptjente renter utbetalt fra finansinstitusjonen. United Kingdom
- Rule
- Housing Act 2004 ss. 212-213
- Section 212 defines the schemes as custodial or insurance schemes. The ingested sections do not say whether a deposit earns interest.
- The sections concern assured shorthold tenancies in England; the 2004 Act text ingested already reflects the Renters' Rights Act 2025 amendments for assured tenancies.
- No person may require a deposit that is not subject to a scheme (s. 213(2)), and the landlord must give the tenant prescribed information within 30 days.
must, as from the time when it is received, be dealt with in accordance with an authorised scheme.the initial requirements of an authorised scheme must be complied with by the landlord in relation to the deposit within the period of 30 days beginning with the date on which it is received. is made for the purpose of safeguarding tenancy deposits paid in connection with shorthold assured tenancies Countries not in this table yet
The Netherlands (art. 261b BW 7 says nothing about interest or where the deposit is held), Sweden (Jordabalk 12 kap. covers pledges and guarantees only), Japan, the United States, Australia and France (no deposit statute in the ingested acts).
How this table was built
Every row is taken from the official, consolidated text of the statute, which LawAsked loads from each government’s legislation service.
Each figure is tied to a passage quoted word for word from that text. When the page is served, it checks that every quoted passage is still in the current text of a law that is in force; if a law is amended and its wording changes, that row is hidden until a person reviews it again.
The table shows the statutory minimum only. Collective agreements, awards and individual contracts often give more than the statute, and some countries let a collective agreement set different terms.
Use this data
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How to cite this page
LawAsked, “Interest on rental deposits and where they are held”, https://lawasked.com/guides/deposit-interest (reviewed October 25, 2026).
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