Rental Deposit Interest Calculator South Africa
Calculate the interest owed on a tenant deposit and the net refund amount — landlord obligations under the Rental Housing Act Section 5
| Deposit paid | R 10 000 |
| Interest earned over 23 months (7.0% p.a., compounded monthly) | + R 1 431 |
| Refund to tenant | R 11 431 |
- No damage deductions: return deposit + interest within 14 days of lease end
- With deductions: return balance within 21 days of the outgoing inspection report
How Deposit Interest Is Calculated
Under Section 5(3)(a) of the Rental Housing Act No. 50 of 1999, the landlord must invest the tenant's deposit in an interest-bearing account with a registered financial institution. The interest earned belongs entirely to the tenant — the landlord has no right to retain it.
This calculator uses monthly compounding, which is standard for savings and money market accounts. Fixed deposits may compound differently — use your bank's actual statement for the precise interest amount.
Your calculation: R 10 000 deposited for 23 months at 7.0% p.a. compounded monthly = R 1 431 interest, total refund (before deductions) = R 11 431.
Rental Deposits Under South African Law How to use • RHA Section 5 • Example
How to Use This Calculator
Enter the deposit amount, the lease start and end dates, and select the type of interest-bearing account where the deposit was held. If there are legitimate damage deductions, enter the total amount supported by invoices. The calculator computes the total interest earned, the tenant's net refund entitlement, and the statutory refund timeline.
The Compliance tab provides a checklist of landlord obligations under the Rental Housing Act — useful for both landlords ensuring they are compliant and tenants understanding their rights.
What the Rental Housing Act Requires
Section 5 of the Rental Housing Act No. 50 of 1999 (as amended) sets out clear rules for rental deposits:
- The deposit must be invested in an interest-bearing account at a bank registered with the FSCA — not in the landlord's personal or operating account
- The landlord must provide the tenant with written proof of the account within a reasonable time if requested
- Both parties must sign an ingoing inspection report before or on occupancy
- An outgoing inspection must be conducted within 3 days of the tenant vacating
- If no damages: return deposit + interest within 14 days of lease expiry
- If there are deductions: provide invoice evidence and return the balance within 21 days of the outgoing inspection report
- All interest belongs to the tenant — the landlord may not retain any portion
Worked Example
Tenant Zanele pays a R12,000 deposit to her landlord for a flat in Cape Town. The landlord correctly places it in a money market account earning 8.5% p.a.
After 24 months, at 8.5% p.a. compounded monthly, the account grows to approximately R14,176 — interest of R2,176.
The outgoing inspection reveals a broken towel rail (R850 to replace, invoice provided). The landlord may deduct R850. Net refund: R14,176 − R850 = R13,326, which must be paid within 21 days of the inspection report.
If the landlord fails to refund within the statutory period, Zanele can file a complaint with the Western Cape Rental Housing Tribunal at no cost.
Frequently Asked Questions
Can a landlord keep the deposit interest in South Africa?
No. Section 5(3)(b) of the Rental Housing Act is explicit: all interest earned on the deposit belongs to the tenant. The landlord must account for the full interest and return it together with the deposit principal (less lawful deductions). Any lease clause purporting to let the landlord keep the interest is void. Landlords who retain deposit interest can face RHT complaints and orders to repay.
What is fair wear and tear and what counts as damage?
Fair wear and tear is the natural deterioration of a property from normal, reasonable use over time — faded paint, small carpet indentations from furniture, minor scuff marks, and normal nail holes from hanging pictures. These costs are the landlord's responsibility and cannot be deducted from the deposit. Damage, by contrast, is caused by negligence, misuse, or accidents — broken windows, burns on countertops, large holes in walls, stained carpets from pet urine, or broken fixtures. These are the tenant's responsibility and can be deducted if substantiated by invoices.
What can I do if my landlord doesn't return my deposit?
First, send a written demand (email or WhatsApp is acceptable). If the landlord does not respond or refund within the statutory period (14 or 21 days), file a free complaint with your provincial Rental Housing Tribunal (RHT). The RHT can summon the landlord, investigate, and issue a ruling ordering the refund plus interest. For amounts above R20,000 or complex disputes, the Magistrate's Court is also an option. Do not agree to an out-of-court settlement that is less than the full amount owed without legal advice.
How much deposit can a landlord charge in South Africa?
The Rental Housing Act does not set a statutory maximum deposit amount. In practice, most landlords charge 1–2 months' rent. Some charge 2 months for furnished properties or tenants with limited rental history. Any amount agreed to in the lease is legally binding, provided the deposit is properly invested and accounted for. Be wary of landlords requesting more than 2 months' deposit — this is unusual and warrants scrutiny.
What if the landlord can't prove what interest was earned?
The landlord is legally obliged to provide written proof of the interest-bearing account and account statements if requested. If the landlord cannot prove the deposit was invested (because it was not), this is a serious breach of the RHA. The RHT can order the landlord to pay the deposit back plus what the interest would have been if properly invested, and in severe cases, additional sanctions. Keep all proof of your deposit payment (receipt, EFT confirmation, bank statement) for the duration of the lease and afterwards.