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.
bail
A sum of money deposited with a court as security in order to obtain the release of a defendant until the trial.
Der Richter setzte eine hohe Kaution für die Freilassung des Verdächtigen fest.
The judge set high bail for the suspect's release.
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
Sicherheit is the more general term for money or an item of value deposited as a guarantee. A Kaution, by contrast, is a sum of money that is returned when the terms of the contract have been fulfilled. That is why Kaution is usually the more precise term for rentals.
Für den gemieteten Wagen hinterlegt Paul 500 Euro Kaution.
Paul pays a 500-euro security deposit for the rental car.
Für das private Darlehen hinterlegt Paul seine wertvolle Uhr als Sicherheit.
Paul deposits his valuable watch as collateral for the private loan.
