Security deposit interest: calculation and what to do if it was not paid

A cash security deposit (jistota, often called kauce) secures the rent and other obligations under the lease. When the lease ends, the landlord returns it to the tenant. From the day it was paid, the tenant is entitled to interest of at least the statutory rate. That is § 2254 of the Czech Civil Code. The deposit may not exceed three months' rent.

The statutory rate comes from government regulation 351/2013 Sb.: the Czech National Bank's two-week repo rate in force on the first day of the calendar half-year, plus 8 percentage points. A deposit sits for years, so each half-year uses its own rate. This is not default interest, where one rate is fixed when the debt starts and then stays unchanged.

How the deposit interest is calculated#

Enter the amount the tenant actually paid, the day it was received, and the day the landlord returns it. Interest runs from the day of payment up to, but not including, the day of return. The day count is divided by 365, including in a leap year. The result is in hellers, and the table shows each half-year.

The lease can set a higher rate. A rate below the statutory minimum is not allowed, and if the contract states a lower number, the statutory rate is used. A deposit of CZK 30,000 paid on 1 January 2024 and returned on 1 January 2026 earns CZK 7,659.05 of statutory interest over 731 days.

• First half of 2024: 14.75%, 182 days, CZK 2,206.44
• Second half of 2024: 12.75%, 184 days, CZK 1,928.22
• First half of 2025: 12.00%, 181 days, CZK 1,785.21
• Second half of 2025: 11.50%, 184 days, CZK 1,739.18

What to do if deposit interest was not paid after the lease ended#

The common Czech search phrase swaps the parties. The tenant does not pay deposit interest to the landlord. The landlord pays it to the tenant together with the deposit. If nothing was sent after the lease ended, the claim belongs to the tenant.

If you are the tenant, calculate the interest, deduct only amounts the landlord has documented as a debt under the lease, and send a written demand. State the principal, the payment date, the end of the lease, the rate in each half-year, the total, and an account number. Attach the lease and proof of payment. The general limitation period is three years (§ 629 of the Civil Code) and runs from when the right could first be exercised. The starting point can differ in a particular case, so send the demand once the papers are together and do not leave it for years.

If you are the landlord, you owe the interest. Calculate it, set off proven claims under the lease, and pay the rest. When the tenant did not receive the interest, this is the claim they can make. It is not a penalty for something the tenant failed to pay.

What can be deducted from the deposit#

When returning the deposit, the landlord sets off what the tenant owes under the lease. That is typically unpaid rent, a balance from the service-charge settlement, and damage beyond ordinary wear. Ordinary use of the flat is not a reason to deduct. Each deduction needs an amount and a reason, ideally an invoice, a handover record, or the settlement. The rest of the deposit, including interest, belongs to the tenant.

Interest is calculated on the full deposit for the time the landlord held it. Setting off a debt reduces the amount to be returned. It does not wipe out interest for the previous years.