Returning depsoit and interest accrued

KILL_BILL

When a landlord keeps a deposit and then returns it when the tennant leaves who gets to keep the interest that has accured whilst the property has been rented.

For example i paid a £800 deposit 7 years ago and now have to leave

although the interest wont be that much who gets to keep the amoun that would have accrued ?

clutton_2

what does it say in your tenancy agreement ? its your money - i reckon it should be your interest

PerfectPeaches

Generally on a deposit you don't get to keep the interest and it stays with the estate agent but you need to check your tenancy agreement as it may differ.

Considering its your money, you should get the interest but it doesn't always work like that unfortunately.

Peaches

tbs624

KILL_BILL wrote: »

When a landlord keeps a deposit and then returns it when the tennant leaves who gets to keep the interest that has accured whilst the property has been rented.

For example i paid a £800 deposit 7 years ago and now have to leave

although the interest wont be that much who gets to keep the amoun that would have accrued ?

It is usual for your tenancy agreement to say what should happen about interest on your tenancy deposit.

Some LLs/LAs retain it , arguing that the interest covers the costs of their time in sorting the deposit out, some LLs split it with the T and some wholly allocate it to the T.

Have you signed for a new fixed term agreement after 6 April 2007?

If you have, and the property is in E/Wales & let under an AST then this deposit should have been scheme registered.

clutton_2

OP how would you go about calcuating it with so many changes in interest rates over that period ?>

mostlycheerful

£800 deposit 7 years ago

"Compound interest is the eighth wonder of the world. He who understands it, earns it.. he who doesn't pays it", Albert Einstein. And Ben Franklin and John Maynard Keynes have also been credited with the description. Einstein called compound interest "the greatest mathematical discovery of all time".

Standard default interest UK 8%

(1) 800
(2) 864
(3) 933.12
(4) 1007.77
(5) 1088.39
(6) 1175.46
(7) 1269.49
(8) 1371.06

10% over 25 years :

Year Sum invested Interest End of year value
1 £1,000 £100 £1,100
2 £1,100 £110 £1,210
3 £1,210 £121 £1,331
4 £1,331 £133 £1,464
5 £1,464 £146 £1,611
6 £1,611 £161 £1,772
7 £1,772 £177 £1,949
8 £1,949 £194 £2,144
9 £2,144 £214 £2,358
10 £2,358 £236 £2,594
11 £2,594 £259 £2,853
12 £2,853 £285 £3,138
13 £3,138 £314 £3,452
14 £3,452 £345 £3,797
15 £3,797 £380 £4,177
16 £4,177 £418 £4,595
17 £4,595 £459 £5,054
18 £5,054 £505 £5,560
19 £5,560 £556 £6,116
20 £6,116 £612 £6,727
21 £6,727 £673 £7,400
22 £7,400 £740 £8,140
23 £8,140 £814 £8,954
24 £8,954 £895 £9,850
25 £9,850 £985 £10,830

http://www.nsandi.com/youandyourmoney/toolsandtips/compound-interest

Compare the performances of savings, property, shares, gold, commodities, art, wine, antiques, coins, stamps etc.

The Rule of 72
To be able to do compound interest problems in your head, the Rule of 72 gives you a lightning fast benchmark to determine how good (or not so good) a potential investment is likely to be.
The rule of 72 says that in order to find the number of years required to double your money at a given interest rate, you can just divide the interest rate into 72.
For example, if you want to know how long it will take to double your money at eight percent interest, divide 8 into 72 and get 9 years.
The rule of 72 is remarkably accurate, as long as the interest rate is less than twenty percent.
You can also run it backwards. If you want to double your money in six years, just divide 6 into 72 to find that it will require an interest rate of about 12 percent.
http://www.greekshares.com/8th.php

And with a martingale, also known as a sure thing and gamblers’ ruin, as long as your bank is big enough you can double up every time and always recoup a loss 1,2,4,8,16,32,64,128,256,512,1024 etc

clutton_2

but some interest rates have been 0.5% for quite a while now !!!!!!

Jojo1daffy

If there's an savings account with an interest rate of 8% anywhere I'm applying now!

mostlycheerful

£800 deposit 7 years ago 0.5% compounded

(1) 800
(2) 804
(3) 808.02
(4) 812.06
(5) 816.12
(6) 820.20
(7) 824.30
(8) 828.42

Hmm, yeah, not quite so exciting. Yawn. And with inflation running at 18 million percent it’s actually worth nothing.

tbs624

clutton wrote: »

but some interest rates have been 0.5% for quite a while now !!!!!!

Strange how the calculation of the interest rates that some LLs seek to levy on their Ts in the event of late rent payments doesn't work in the same way as when the interest on the Ts deposit gets calculated once it becomes due for return.

KILL_BILL

I rented privately with a landlord and there is nothing in the contract in relation to the interest that would have accrued on the amount.