Deposit interest and refund dates

How much interest a rental deposit has earned, what should be refunded, and the deadlines in section 5(3) of the Rental Housing Act.

Your details

Ask the landlord which account it is in. The law sets no fixed rate: it must be at least that bank's savings rate.

Interest added

Repairs beyond fair wear and tear, lost keys or unpaid rent, with receipts.

Refund due: deposit plus interest

R10 458.11

Includes R458.11 interest over 364 days

Interest earned
R458.11

How we worked it out

  1. DepositR10 000.00
  2. Time held364 days

    1 November 2025 to 31 October 2026

  3. Interest rate4.50%

    Compounded monthly; at least the bank's savings rate (s5(3)(d))

  4. Interest earnedR458.11

    Belongs to the tenant

  5. Deposit plus interestR10 458.11
  6. Full refund due to the tenantR10 458.11

Key dates (Rental Housing Act s5(3))

  1. Joint move-out inspection window opensWithin 3 days before the lease ends (s5(3)(f))
  2. Refund if nothing is owedWithin 7 days of the lease ending, with no deductions (s5(3)(i))
  3. Landlord inspects alone if the tenant did not respondWithin 7 days after the lease ends (s5(3)(k))
  4. Refund balance if the tenant missed the inspectionWithin 21 days after the lease ends (s5(3)(m))
General information, not legal advice. KayaPact gives general information and document templates based on the Rental Housing Act, the Consumer Protection Act and related laws. It is not legal advice and does not create a lawyer-client relationship. Laws and your lease may change the answer for your situation: for disputes, speak to the Rental Housing Tribunal in your province, a Rental Housing Information Office, Legal Aid South Africa or an attorney. Interest is estimated at the rate you enter. The bank statement for the deposit account is the final word.

How the interest is worked out

Monthly: deposit × (1 + rate ÷ 12) raised to the number of months held, minus the deposit. Daily: the same with 365 periods a year. Banks credit interest in different ways, so treat the result as a close estimate.

If the deposit is not refunded

Ask in writing, quoting the deadline. If that does not work, the tenant can lodge a free complaint with the Rental Housing Tribunal. See the deposits guide for the full rules.

Frequently asked questions

Does a landlord have to pay interest on a deposit?

Yes. The landlord must invest the deposit in an interest-bearing account with a bank, at a rate not less than that bank's savings rate, and the interest belongs to the tenant (Rental Housing Act s5(3)(d)).

What interest rate should I use?

The rate of the account the deposit is actually in. The Act sets a minimum (the bank's savings rate), not a number. The tenant may ask for written proof of the interest earned during the lease, and the landlord must provide it.

How long does the landlord have to refund the deposit?

7 days after the lease ends if nothing is owed (s5(3)(i)); 14 days after the dwelling is returned if there are deductions (s5(3)(g)); and 21 days after the lease ends if the tenant did not respond to the inspection request (s5(3)(m)).

What can be deducted?

Amounts the tenant owes under the lease, including the reasonable cost of repairing damage caused during the tenancy (not fair wear and tear) and of replacing lost keys. The landlord must make the receipts available (s5(3)(g) and (h)).

What if the deposit is held by an estate agent?

Deposits held by a registered estate agent (now called a property practitioner) are dealt with under the law that governs property practitioners and their trust accounts, rather than the bank-account rule in the Rental Housing Act.

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