What is rental deposit insurance?
Rental deposit insurance (also called a rental deposit guarantee, Mietkautionsbürgschaft) is a smart alternative to the classic cash deposit. Instead of parking several months' rent in a deposit account, you pay an annual fee and receive a guarantee certificate for your landlord.
The principle is simple: an insurer vouches for you to the landlord. In a claim, the insurer first pays the landlord – you then have to repay the amount to the insurer. This way your money stays in your account and you remain financially flexible.
Without a guarantee
€2,250 deposit blocked in the landlord's account – no access during the tenancy.
With a guarantee
Pay ~€95/year, and the €2,250 stays available in your account – for furniture, emergencies or investments.
Example calculation
With a base rent of €750 (Nettokaltmiete, excluding utilities), the deposit under section 551 BGB (the German Civil Code) is at most €2,250 (three months' net base rent; utilities do not count). A rental deposit guarantee costs around €95–106 per year for this at 4.2–4.7 % – depending on the provider. Over a 3-year tenancy you have "rented" the deposit for roughly €280–320.
Advantages of the rental deposit guarantee
Keep your liquidity
Your money stays in your account – use it for furniture, the move or as an emergency fund.
Quick sign-up
Online in a few minutes – you receive the digital guarantee certificate immediately by email.
Legally recognised
The guarantee is a recognised form of rental security; the cap of three months' net base rent under section 551 BGB also applies to it.
Flexible cancellation
With most providers it can be cancelled at any time at the end of the tenancy – no long commitments.
Calculating the cost: what you really pay
The annual costs among the providers compared are between 4.2 % and 4.7 % of the deposit amount (as of October 2026). With a deposit of €900 you therefore pay roughly €38 to €42 per year – about €3.15–3.55 per month. With small deposits, minimum premiums (e.g. €25/year at Deutsche Kautionskasse) can raise the price.
Annual costs compared (at a €900 deposit)
Green = cheapest | Orange = with initial legal advice | kautel: indicative value, premium set individually
| Base rent | Max. deposit | Annual cost from | Monthly from |
|---|---|---|---|
| €200 | €600 | ~€25 | ~€2.10 |
| €300 | €900 | ~€38 | ~€3.15 |
| €500 | €1,500 | ~€63 | ~€5.25 |
| €750 | €2,250 | ~€95 | ~€7.90 |
| €1,000 | €3,000 | ~€126 | ~€10.50 |
Is it worth it?
Over a 3-year tenancy with a €2,250 deposit you pay about €285 in fees. In return you keep €2,250 in your account. At just 2% interest in an instant-access savings account you would earn about €135 over 3 years – the effective cost falls to ~€150. For the flexibility and liquidity that is often a fair price.
The top providers in detail
DepositDirect – lowest rate in the comparison
DepositDirect has the lowest rate in the comparison at 4.2% of the deposit amount per year – for a €1,500 deposit that is €5.25 per month according to the provider. Handling is fully digital with online instant approval, and according to DepositDirect confirmation is available within five minutes.
heysafe – digital and active immediately
heysafe charges 4.3% of the deposit amount per year, from €3.25 per month according to the provider. The guarantee is active immediately after sign-up and issued as a PDF; the landlord can check its authenticity online.
kautionsfrei.de – with initial legal advice
kautionsfrei.de charges 4.7% of the deposit amount per year; the guarantor is R+V. If the landlord claims money under the guarantee, R+V first examines the claim. As part of a time-limited promotion, after sign-up there is a voucher for a telephone initial consultation with a lawyer, for example on reclaiming the deposit or the utilities statement.
Baloise, Deutsche Kautionskasse & kautel
Baloise (now Helvetia Baloise Group) charges 4.3% per year, at least €39. Special feature: if the landlord demands the deposit, you have four weeks to object. Deutsche Kautionskasse (Moneyfix® rental deposit) has specialised in rental deposit guarantees since 2008, works as an underwriting agent with partners including Allianz and ERGO, and charges 4.4% per year, at least €25. The guarantee runs with no fixed end until the original certificate is returned. kautel arranges guarantees from R+V among others; kautel does not publish a fixed percentage, the premium is determined individually in the online calculator and can be paid monthly to annually.
Do landlords accept the guarantee?
In principle yes – the rental deposit guarantee is a legally recognised rental security within the meaning of section 551 BGB. Which form of security is owed, however, is governed by the tenancy agreement: if it specifies a cash deposit, the landlord does not have to accept a guarantee.
Our tip: talk to your landlord before signing up and explain the advantages. Many private landlords do not yet know the guarantee but are open to it once you explain how it works.
Important for landlords
The providers usually issue a primary guarantee (selbstschuldnerische Bürgschaft): the landlord can turn directly to the insurer for justified claims without first pursuing the tenant, and has no administrative effort with a deposit account. Still, clarify acceptance in advance – there is no universally valid acceptance rate.
How signing up works
Compare the providers above and pick the right one.
Fill in the application – usually just name, address and deposit amount.
The provider checks your credit standing (SCHUFA, Germany's main credit bureau) – it takes a few seconds.
After payment you receive the digital guarantee certificate immediately by email.
Print the certificate or forward the PDF.
Alternatives to the rental deposit guarantee
Besides the guarantee there are other ways to provide the rental deposit:
- Cash deposit: the classic variant – you transfer the deposit to the landlord. Under section 551 BGB you may pay a cash deposit in three equal monthly instalments; the first is due at the start of the tenancy, the other two with the following rent payments. The landlord must invest the money separately from their own assets at a bank; the interest belongs to you. Drawback: the money is tied up during the tenancy.
- Deposit savings account / rental deposit account: a savings account in your name that is pledged to the landlord. Interest (if any) belongs to you. Not every bank offers such accounts – ask your house bank.
- Bank guarantee: your bank vouches for you – usually more expensive and only available to very good customers.
Last updated: October 2026 | Sources: provider websites (depositdirect.net, heysafe.de, kautionsfrei.de, kautionskasse.de, kautel.de), section 551 BGB