Santander Bank also offered a rental deposit account for end customers and private tenancies until 2021. Here, a regular savings account was used, which was pledged with the rent deposit and served as a deposit for the landlord.
Since 2021, it is no longer possible for new customers to sign up for a security deposit account, however, there are alternatives here in comparison:
How did the rental deposit account work at Santander Bank?
The rent deposit savings account at Santander Bank could only be set up at the banks branch, there was no way to set up the rent deposit in the bank's new online banking interface. If customers appreciated personal contact at the branch counter, Santander Bank was a way to quickly and easily set up a deposit savings account. Only the deposit amount, the new rental agreement or the address of the new landlord and one's own identity card were required for this purpose. If the landlord directly set up the deposit account, he only needed the tenant's deposit amount for this, which was then deposited with the bank separately from his other assets in an insolvency-proof and fiduciary manner. The newly established account was pledged to the landlord with a declaration of pledge – the declaration of pledge served as security in case the deposit was ever needed (bspw. in case of loss of rent, or after moving out in case of damage to the property). Unfortunately, this deposit account no longer exists in this form. A possible alternative is offered by DKB Bank.
Where could you get the security deposit account set up?
The deposit account could be set up at the Santander Bank in any branch, for this a savings account was necessary. If you have not had a business relationship with the bank before, create the account as a new customer and transfer the deposit amount, or have it collected to the newly created account with a power of attorney. Alternatively, there was also the possibility to pay the deposit in cash and have it pledged immediately.
Tip: You are looking for a way to set up a rental deposit account completely online? The DKB Bank offers an online rental deposit account without having to visit a bank branch.
What options does Santander Bank offer for the rental deposit?
Unfortunately, since there is no longer a deposit savings account at Santander Bank, the only option at the moment is a bank guarantee and financing the deposit through the bank. This is mainly to deposit a deposit, even if the deposit amount is not available at the current time. A rental guarantee or a rental deposit guarantee are currently not offered by the bank directly, but on request, alternatively there is the possibility to finance the rental deposit via a loan for the rental deposit or the Santander credit card.
Santander credit card for rental deposit
The Santander Credit Card 1plus Visa Card is mainly known for getting a cashback bonus when refueling – that is, when refueling with this, getting a 1% discount on the fuel bill through the credit card. At the same time, however, it is also conceivable to use the credit card as a short-term bridge, given the current debit interest rate of 13.98% as an option. More favorable here is certainly the installment loan, which is also possible for financing.
Santander installment loan to finance rent deposit
Through the BestCredit product, personal customers get the opportunity to finance a rental security deposit from as little as 1.99% (2022). This is relatively inexpensive compared to many rental deposit guarantees. Financing would work in such a way that the loan would be requested from the bank, confirmed if the creditworthiness was positive, and transferred to a checking account. Afterwards, the sum can be paid in cash and handed over to the landlord or, alternatively, directly transferred further. If possible, the installment payments for the rental deposit loan should not run longer than the actual tenancy – so rather choose a short term for this purpose. The advantage over a rent deposit guarantee would be that the deposit would be paid out again at the end of the term.