If we hold a Custodial deposit and it’s 183 days or more since it was originally placed in a deposit protection scheme, interest will become payable to your tenants. Any payable interest will be paid back to the tenant at the end of the tenancy, once the deposit repayment process is complete.
Q. Why does the tenant get the interest on the deposit and not me?
A. During the tenancy, the deposit remains the property of the tenant, so any interest accrued becomes payable to them.
Q. If I keep any of the deposit at the end of the tenancy, does that mean I get to keep the interest accrued?
A. No, even if the tenant agrees that you are entitled to keep any part of the deposit at the end of the tenancy, all interest accrued becomes payable to them.
For more information on this topic please read our terms and conditions.