Free tool

Deposit interest calculator

Under the Rental Housing Act a deposit must be held in an interest-bearing account, and the interest belongs to the tenant. This works out what has accrued over the tenancy.

Deposit held (R)

Annual interest rate (%)

Period held (months)

Compounding

Deductions at end of lease (R — damages, arrears, etc.)

Deposit held
Interest accrued
Less deductions
Refund due to tenant

General guidance only, not legal advice. The rate you must apply is the rate the deposit actually earned in the interest-bearing account — this calculator helps you check the figure, it does not set it. Confirm against your bank statements and the lease.

What the law requires

Section 5 of the Rental Housing Act 50 of 1999 requires a landlord who takes a deposit to invest it in an interest-bearing account with a financial institution, and to pay the tenant interest at a rate that is not less than what the money would have earned in a savings account. The tenant is entitled to that interest — it is not the landlord's or the agency's income.

The tenant may also ask to see proof of the interest earned, and the landlord must provide it. At the end of the lease the deposit plus interest, less any amounts lawfully deducted for damages or arrears, must be refunded within the periods set out in the Act — and deductions must be supported by receipts the tenant can inspect.

This is one of the most commonly mishandled obligations in South African residential letting. Agencies that hold deposits in a general business account rather than a proper trust or interest-bearing account are exposed on both the Rental Housing Act and, for estate agents, PPRA trust-account rules.

Deposits held properly, tracked automatically

Locare handles deposit trust accounting on a double-entry ledger — held separately, interest attributed, and refunds reconciled at the end of the lease.

See how it works