Calculate interest
Interest calculation
Enter deposit details to calculate interest
FAQ
How is the deposit interest calculated?+
According to Icelandic law, the interest is calculated based on the Central Bank of Iceland's key interest rate minus a margin matching Auður's unbound savings account, which is usually the highest rate on the market. The calculator applies the appropriate rate for each time period, accounting for any rate changes during your rental period.
Do I have to pay tax on the interest?+
Yes, capital gains tax (Fjármagnstekjuskattur) of 22% is automatically applied to the interest earned on your deposit. This calculator shows both gross interest and net interest after tax. Whether the tax burden of this interest is on the tenant or the landlord is a matter of legal interpretation.
What if my landlord doesn't pay me the correct interest?+
According to Article 40 of the Icelandic Rent Act (Húsaleigulög nr. 36/1994), landlords are legally required to keep deposits in separate accounts with the highest available interest rate. If your landlord hasn't paid the correct interest, you may have grounds for a claim. The landlord has four weeks from the end of the rental period to pay back the deposit. If they fail to do so, you can take legal action to recover the amount, and claim "dráttarvextir" (default interest) from the date the interest was due.
How often do interest rates change?+
The Central Bank of Iceland periodically reviews and adjusts its key interest rate. These changes directly affect the interest rate that should be applied to your deposit. This calculator uses rate data fetched from the CBI and Auður; see the rate data page for when it was last updated.