interest on rental deposit

kmmr

It's not precise as to the calculation method, but it's pretty clear that it is only interest actually earned.
DPS says they pay no interest anymore: https://www.depositprotection.com/help/browse/custodial/tenant/interest-payments

dimbo61

The government sits on Millions and Millions of pounds of Deposit money and NO ONE gets one penny in Interest!
Not the landlord or the tenant.
Please do not hold your breath on this one.
But good luck all the same :-)

00ec25

kmmr wrote: »

It's not precise as to the calculation method, but it's pretty clear that it is only interest actually earned.
DPS says they pay no interest anymore: https://www.depositprotection.com/help/browse/custodial/tenant/interest-payments

ColinHackett wrote: »

the agent is a member of the tenancy deposit scheme.

Any interest earned will belong to the tenant.

the OP (as shown above) refers to the TDS not the DPS
under the TDS the agent retains the cash and therefore the rate of interest and amount of interest earned depends wholly on where the agent banks the money as the TDS does not have it
https://www.tds.gb.com/agents-overview.html

the TDS itself suggests how LL and agent should deal with interest in its own guidancne issued to LL/agents:
https://www.tds.gb.com/resources/files/2013/What%20is%20the%20TDS%20Scheme%20Leaflet%202013.pdf
"What happens to the deposit after the landlord or agent receives it?
The landlord or the agent will hold the deposit during the tenancy. The tenancy agreement should state who receives any interest it makes."


therefore the OP's tenancy agreement needs a clearer definition of what has been "earned". Does it mean a share of the money credited to the account (what if the payment date is after the tenancy terminates) or does it mean the agent apportions the earning mathematically - hence artful's comment b) about extra work for the agent

00ec25

dimbo61 wrote: »

The government sits on Millions and Millions of pounds of Deposit money and NOBOBY gets one penny in Interest!
Not the landlord or the tenant.
Please do not hold your breath on this one.
But good luck all the same :-)

first off you are talking about the custodial DPS scheme , the OP is not with that so "the government" is irrelevant to the OP's situation

In respect of the DPS, the "government" provides the service free of charge to both LL and T and funds the operation from the interest it earns from those deposits. If you read the scheme's reports then you'll see that with current low interest rates the scheme is struggling to meet its own costs

Would you rather that the tenant has to pay a fee to register their own deposit ? (and don't say the LL should pay as the LL will just pass the extra cost back to the T)

sandsni

I'm in NI, so things may be slightly different, but we're using the custodial scheme of the TDS, and I'm pretty sure it said the interest accrued was their fee (it was free for us to use the custodial scheme). Not sure how it would work in an insurance-based scheme.


As 00ec25 says, current interest rates are so low that any interest on a single deposit isn't exactly going to be eyewatering, so hardly worth the effort to figure out who's entitled to it. Having said that, if the tenant is entitled to it then they should get it, however little it turns out to be.

00ec25

sandsni wrote: »

As 00ec25 says, current interest rates are so low that any interest on a single deposit isn't exactly going to be eyewatering, so hardly worth the effort to figure out who's entitled to it. Having said that, if the tenant is entitled to it then they should get it, however little it turns out to be.

indeed. I would be surprised if a letting agency has access to an account paying more than 1%pa, so we are talking about £5 per year per £500 of deposit
£5 is indeed £5 but not worth arguing over

Morglin

ColinHackett wrote: »

Any idea of what rate of intrest i should claim for as i am sure that they won't just offer it.

Would it be along the lines of the 8% that the banks have been paying back along with PPI claims?

Thanks,
Colin.

No, I wouldn't think you would get anything near 8% - interest on savings, at the moment, is pitifully low and not even approaching that amount.

The PPI refunds are higher because at the time people were being talked into taking out these insurances, interest rates were higher.

I would look nearer to about 1 or 2%.

Lin