[awad]

From an accounting perspective in this hypothetical scenario I believe that you would not be legally allowed to dip into the deposit money save for that recovered through bans. Which creates very perverse incentives.

[sadris]

Landlords are allowed to place received security deposits into interest bearing accounts.

[gpm]

Where I live they owe interest to the tenants on deposits.

[sadris]

Correct. And they get that interest by placing it in an interest bearing account.