Paying interest on deposits

If your deposit is held with us in our Custodial deposit protection scheme, after 182 days you will earn interest on it. This means that at the end of your tenancy you might receive interest in addition to getting your deposit back.

 

What does this mean for you?

  • Once your deposit has been protected with mydeposits for longer than 182 days you will start to earn interest on it, the interest will be calculated from the first day we start protecting your deposit
  • The interest earned will be calculated on a daily basis using the current interest rate and that of DPS, this will currently accrue at the rate of 0.84%
  • Any interest you have earned at the end of the tenancy will become available when your deposit balance is £0
  • If your landlord chooses to transfer your deposit to a different deposit protection provider, we’ll transfer any interest along with your deposit. Please note, you will need to claim this back from the new deposit provider at the end of your tenancy
  • Payment of interest will be made within 10 working days of the tenant contacting us about interest post release.
  • Payment of interest will only be entitled by BACs, we will not send any interest by cheque.
  • Interest will only be calculated and accrued from 1 July 2023 onwards

 

Donating your interest to charity

If you would prefer, you have the option to donate the interest earned to a charity instead of claiming it yourself.
You can let us know if you choose to donate your interest to charity at any point during your tenancy or at the end of tenancy on your online account.
If you decide to donate your interest to charity, when your tenancy ends this money will be donated to our chosen charity.

Frequently asked questions

Throughout the tenancy, the deposit is owned by the tenant and therefore any interest earned on the deposit they paid at the start of their tenancy is theirs to keep.
No, the tenant is entitled to all of the interest payable from the full deposit amount, even if they agree you can keep some or all of the deposit.
No, we will calculate the interest your tenant has earned on their deposit and send information to them on how to claim this at the end of their tenancy.
No, as the tenant you are entitled to all of the interest payable from the full deposit amount.
If your landlord chooses to transfer your deposit to a different deposit protection provider, we’ll transfer any interest along with your deposit. At the end of your tenancy, you will need to claim this back from the new deposit provider.
The interest earned will be calculated on a daily basis using the current interest rate, at the moment this is at 0.74%. You can log into your online account at any time to see how much interest you have earned on your deposit.