deposit / bail
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security deposit
A sum of money deposited as security, for example when renting an apartment or a car, and which is paid back if the item is returned according to the contract.
Für die neue Wohnung mussten wir eine Kaution in Höhe von drei Monatsmieten hinterlegen.
For the new apartment, we had to put down a security deposit equal to three months' rent.
Careful: 'die Kaution' is not the English word 'caution'! 'Caution' means 'Vorsicht' (care/caution) or 'Warnung' (warning). 'Die Kaution' is financial security (security deposit, bail).
Der Vermieter hat die Kaution nach meinem Auszug schnell zurückgezahlt.
The landlord quickly paid back the security deposit after I moved out.
You can recognize the meaning from the context. In connection with 'Miete' (rent), 'Wohnung' (apartment), or 'Auto' (car), it means the security payment for a rental. In the context of 'Gericht' (court), 'Richter' (judge), or 'Angeklagter' (defendant), it refers to release from pretrial detention.
Die Kaution für die Mietwohnung beträgt 1.500 Euro.
The security deposit for the rental apartment is 1,500 euros.
In a rental context, the most important verbs are: 'eine Kaution hinterlegen' (to put down a deposit) or 'zahlen' (to pay) when moving in, and 'die Kaution zurückbekommen' (to get the deposit back) when moving out.
Wir müssen die Kaution vor der Schlüsselübergabe hinterlegen.
We have to put down the security deposit before the key handover.
In a legal context, typical phrases are: 'eine Kaution festsetzen' (to set bail, by the judge) and 'jemanden gegen Kaution freilassen' (to release someone on bail).
Der Richter hat eine sehr hohe Kaution festgesetzt.
The judge set very high bail.
safety / certainty / security
'die Sicherheit' and 'die Kaution' can both refer to a sum of money deposited as a guarantee. 'Kaution' is the more precise word, especially for an apartment, a rental car, or in court. 'Sicherheit' is more general: it can be money or also a valuable item that serves as a guarantee. The words can be confused because a 'Kaution' is a type of 'Sicherheit'. In everyday language, people usually say 'Kaution' for rental contracts, not simply 'Sicherheit'.
Für die neue Wohnung muss Johanna drei Monatsmieten Kaution zahlen.
Johanna has to pay a security deposit of three months' rent for the new apartment.
Die Bank verlangt für den Kredit eine Sicherheit.
The bank requires collateral for the loan.