Do you get interest on rental deposit?

akira181

I am moving out of my flat at the end of the month and a colleague mentioned that my security deposit should be earning interest that I should also get back and I was wondering if this is true?

I live in Scotland in case that makes a difference.

I'm not entirely sure if my LL put my deposit into a security deposit scheme as I don't recall receiving account details. The LL's lawyer friend sorted out the tenancy agreement and stuff when I moved in, so I assume he has but I'll find out for sure next week. If he hasn't, can I ask for compound interest on my deposit? If so, at what rate annually?

Normally, I wouldn't bother too much with this but a £1200 deposit over 8 years should be a noticeable amount of interest that I could definitely use being so close to Christmas and moving into an unfurnished flat and all.

bopsybunny

I have never heard of interest on tenancy deposits being earned and returned to the tenant. I'm in England but that's certainly not a thing here. Would be nice, though!

Comms69

akira181 wrote: »

I am moving out of my flat at the end of the month and a colleague mentioned that my security deposit should be earning interest that I should also get back and I was wondering if this is true?

I live in Scotland in case that makes a difference.

I'm not entirely sure if my LL put my deposit into a security deposit scheme as I don't recall receiving account details. The LL's lawyer friend sorted out the tenancy agreement and stuff when I moved in, so I assume he has but I'll find out for sure next week. If he hasn't, can I ask for compound interest on my deposit? If so, at what rate annually?

Normally, I wouldn't bother too much with this but a £1200 deposit over 8 years should be a noticeable amount of interest that I could definitely use being so close to Christmas and moving into an unfurnished flat and all.

Whilst it's not a small amount of money, it would be roughly £150, so not going to break the bank.


But no typically there is no interest payable on deposits.

theartfullodger

akira181 wrote: »

I am moving out of my flat at the end of the month and a colleague mentioned that my security deposit should be earning interest that I should also get back and I was wondering if this is true?

I live in Scotland in case that makes a difference.

I'm not entirely sure if my LL put my deposit into a security deposit scheme as I don't recall receiving account details. The LL's lawyer friend sorted out the tenancy agreement and stuff when I moved in, so I assume he has but I'll find out for sure next week. If he hasn't, can I ask for compound interest on my deposit? If so, at what rate annually?

Normally, I wouldn't bother too much with this but a £1200 deposit over 8 years should be a noticeable amount of interest that I could definitely use being so close to Christmas and moving into an unfurnished flat and all.

That would depend on what the tenancy agreement (presumably a SaT) said about interest on deposit. Sadly I can't read it from here, could you kindly let us know what it says, please?

Possibly much more money available regarding deposit though...if it wasn't correctly protected in time or PI not served you can sue landlord for up to 3x deposit - ie up to £3,600. Understand in Scotland usually get 3x.. (!!).



For more info see....
https://scotland.shelter.org.uk/get_advice/advice_topics/paying_for_a_home/deposits/tenancy_deposit_schemes

bris

No, because the tenancy deposit schemes are Government backed free to use, the interest generated from these schemes are paid for with that interest.

Slithery

bris wrote: »

No, because the tenancy deposit schemes are Government backed free to use, the interest generated from these schemes are paid for with that interest.

Not quite, they are paid for by some of the interest.

I don't know about Scotland but in England the DPS used to pay interest at a rate of BoE base rate -2.32%.

I'm sure they'd be happy to charge you 1.82% interest today if you asked them nicely enough

akira181

thanks for the replies people.

I read about being able to get 3x the deposit back if it wasn't properly put in a DPS but I don't want to go that route. My LL was decent so I'd feel a bit shady suing him but if there was interest earned on what is technically my money, I'd like to get my share of it.

I'll dig out my tenancy agreement and have a read to see what it says, can't seem to find it at the moment though. Hope I haven't stupidly packed it into a moving box.

theartfullodger

akira181 wrote: »

....
I read about being able to get 3x the deposit back if it wasn't properly put in a DPS but I don't want to go that route. My LL was decent so I'd feel a bit shady doing that but if there was interest earned on what is technically my money, I'd like to get my share of it.

......

He wasn't decent, he blatantly flouted the law on deposit protection.

Even if he had been getting interest, unless your tenancy says you're entitled to it you won;t be entitled.

Simply send landlord the LBA letter for not protecting deposit. Think you'll rapidly get more than any interest. You can then return what you don't want ( eh??) or donate to a more deserving cause....


And you will have provided landlord with some free education..


Artful: (Landlord in Scotland as it happens..)

foxy-stoat

akira181 wrote: »

I am moving out of my flat at the end of the month and a colleague mentioned that my security deposit should be earning interest that I should also get back and I was wondering if this is true?

Ask your colleague if they just made that up...whats next, you will get back the deposit plus 8 years worth of inflation added to it ?

The LL either pays the whole £1200 into a TDS or just pays a small proportion and pays a fee every year and he can put the money where they like.

theartfullodger

foxy-stoat wrote: »

.....
The LL either pays the whole £1200 into a TDS or just pays a small proportion and pays a fee every year and he can put the money where they like.

Not in Scotland: Sensible wee country, all the deposit must be lodged with & in an approved deposit scheme...

System

theartfullodger wrote: »

Not in Scotland: Sensible wee country, all the deposit must be lodged with & in an approved deposit scheme...

Same in Eng/Wales the whole amount needs to be protected either with a custodial scheme for free or by way of an insurance scheme which will have fees attached