With a rent deposit account, the tenant pays in the deposit and the money remains blocked for the duration of the tenancy. Some banks pay interest – this interest belongs to the tenant, not the landlord.
With a rental deposit insurance, tenants pay an annual contribution. In return, the insurer guarantees the landlord, so the deposit does not need to be paid in by the tenant.
From a legal perspective, both solutions are based on Art. 257e OR.
- ✓Rent deposit account: entire amount blocked in a bank account
- ✓Rental deposit insurance: annual premium, capital remains freely available
- ✓Both solutions offer the landlord equivalent security
