Rent deposit as a pledged savings account: how to do it right

The rent deposit does not have to be paid in cash. A common and secure form is a savings account in your name that you pledge to the landlord. This way the money remains your property, but the landlord is secured for the case of a claim.

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Your chances of getting your money back

The deposit may amount to at most three net cold rents and the tenant may pay it in three monthly installments (§ 551 BGB). The landlord must invest it separately from their own assets.

With a pledged savings account or a rent deposit account, the money remains your property and the interest is yours. The landlord can only access it in a justified case of a claim.

What you should do now

1
1. Choose the account type
Open a rent deposit account or a savings account in your name at your bank.
2
2. Declare the pledge
Pledge the balance to the landlord in writing; the bank records the pledge.
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3. Limit the amount
Make sure no more than three net cold rents are demanded and use the installment right if needed.
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4. Secure the return
After the end of the tenancy and expiry of the settlement period, you release the pledge together.

How to spot the scam

The landlord demands more than three net cold rents.
The deposit is not invested separately from the landlord's assets.
The interest is meant to go to the landlord instead of you.

Frequently asked questions

Who owns the interest on the deposit?

The tenant. The deposit must bear interest and be invested separately from the landlord's assets; the returns increase the security and belong to the tenant (§ 551 BGB).

May the landlord demand a cash deposit?

The form is negotiable. Common are a cash deposit, a pledged savings account, a deposit account or a guarantee. If the contract demands cash, you can offer an equivalent alternative such as the pledged savings account; both sides must agree.

When do I get the deposit back?

After the end of the tenancy and return of the apartment, once it is clear that no justified claims remain open. The landlord is entitled to an appropriate review and settlement period, which depending on the case can be several months.

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General information for self-help, not legal advice (RDG). In case of a high loss or uncertainty: contact a consumer advice center or a lawyer.