What is the interest for the government scheme for private tenants?

Question

How much interest is on top of your deposit money? thanks

Answer 1

The only new government law about deposits was the tenancy deposit scheme brought in april last year. You don't gain interest on the deposit it just simply protects you from landlords who withold deposits unfairly.

I have read up and the interest is paid to the company who hold the deposit. So basically the landlord put the deposit into a seperate account and it is managed by a tenant deposit protection scheme, the interest gained is then paid to the protection scheme once the tenant leaves. The comapny who runs the scheme provides insurance for the landlord agaisnt damage that is higher then the deposit and they take the interest as a fee for providing that insurance. It doesnt get paid to the tenant or the landlord!

Answer 2

There are different types of schemes in the UK where your deposit can be held - insurance based and custodial.  The custodial pays interest on your money.  It is based on the Bank of England base rate and roughly the same rate as a direct access savings account, so expect about 2.5%.

Answer 3

Where are the details of the scheme , I don't think it is a goer .

Misunderstanding ,  there was a scheme  I read of somewhere that was providing grants to people in social housing to enter into private housing . sorry .