Calculating Rental Deposit Interest in Austria: A Guide for Tenants

Why Deposit Interest Matters

According to § 16b MRG in Austria, rental deposits must be invested "fruitfully". This means that the deposit should generate interest. As a tenant, you have the right to know how much interest your deposit generates and to receive this interest when the deposit is returned.

How is Deposit Interest Calculated with Compound Interest?

When the deposit is held in an interest-bearing account, interest is often calculated with compound interest.

Final amount = Deposit amount × (1 + Interest rate) ^ Investment period

Example: Your deposit is €3,000, the interest rate is 4% per year, and the term is 5 years:

• Apply formula: Final amount = €3,000 × (1 + 0.04)^5 = €3,649.95
• Calculate interest: Interest = Final amount - Deposit amount = €3,649.95 - €3,000 = €649.95

This means after 5 years, you would be entitled to a repayment of €3,649.95 (deposit + interest).

Your Rights as a Tenant

According to § 16b MRG, you can:

• Request the amount of earned interest from your landlord.
• Request information about how the deposit is invested (e.g., bank statements).
• Have a legal review conducted if you have doubts about the correct investment.

If the landlord doesn't pay interest or provide information, you can take legal action.

How Kautionsheld Supports You

Kautionsheld provides you with tools and support to calculate and claim your deposit interest. Our platform helps you:

• Create standardized requests to your landlord.
• Check if your deposit and interest comply with legal requirements.
• Contest unauthorized deductions or missing interest payments.

Conclusion

Deposit interest is an important part of your rights as a tenant. With the right information and support from Kautionsheld, you can ensure that your deposit earns proper interest and you receive your full entitlement.