Choose a deposit account if...
- You have sufficient free funds available
- You can tie up capital long-term
- You do not want ongoing costs for the deposit
- No upcoming move is planned
Rental deposit guide
Deposit account or rental deposit insurance?
Anyone renting a flat in Switzerland usually has to provide a rental deposit. But how? The two most common options are the traditional deposit account (rental deposit) with a bank and the modern rental deposit insurance. Both serve the same purpose – protecting the landlord – but differ fundamentally in how they work, their costs and the flexibility they offer the tenant.
What is a deposit account?
A deposit account (also known as a rental deposit account or blocked account) is a special blocked account at a bank where the tenant deposits the full deposit amount. The account is in the tenant's name, but the money is locked for the entire duration of the lease and cannot be withdrawn unilaterally by either the tenant or the landlord.
In Switzerland, the deposit amounts to a maximum of three months' gross rent (including utilities) for residential properties. Any interest earned on the account belongs to the tenant. After the lease ends and all claims are settled, the money is returned to the tenant.
Advantages of a deposit account
- The deposited capital is refunded
- No ongoing premium costs
- Widely known and accepted
Disadvantages of a deposit account
- High one-off payment (up to 3 months' rent)
- Capital locked away for years
- Double burden when moving
- Bank fees and low interest
- Opening takes several days
What is rental deposit insurance?
With rental deposit insurance, an insurance company acts as guarantor towards the landlord. Instead of a large one-off payment, the tenant simply pays a moderate annual premium. The landlord receives an official surety certificate that fully covers the agreed deposit amount – with the same legal security as a bank deposit (Art. 257e CO).
The key advantage: the tenant's money remains freely available. No capital needs to be locked away in a blocked account. Sign-up takes just a few minutes online, without paperwork and without bank documents.
Advantages of rental deposit insurance
- No capital tied up -- your money remains freely available
- No double burden when moving
- Fast digital sign-up in just a few minutes
- Same security for the landlord (Art. 257e CO)
- No administration or claims fees (with goCaution)
- All residence permits accepted
Disadvantages of rental deposit insurance
- The annual premium is not refunded
- The tenant must reimburse the amount in the event of a claim
Direct comparison
Deposit account vs. rental deposit insurance
| Comparison point | Deposit account | Rental deposit insurance |
|---|---|---|
| Capital tied up | Yes, until move-out | No |
| Annual costs | None (but opportunity costs) | From CHF 94.50 / year |
| Capital recovery | Yes, after release by the landlord | No (the premium is an insurance service) |
| Double burden when moving | Yes (old + new deposit) | No |
| Speed of completion | Several days (bank account) | A few minutes (online) |
| Documents required | Yes (bank documents) | No (with goCaution) |
| Digital management | Partially | Fully digital |
| Security for the landlord | Yes (bank balance) | Yes (surety bond under CO Art. 257e) |
| Administration fees | Depends on the bank | CHF 0.00 (with goCaution) |
When is which solution the right choice
Choose insurance if...
- You prefer to use your money elsewhere
- A move is coming and a double burden looms
- You prefer a fast, digital sign-up
- You want to release an existing deposit
Frequently asked questions about the comparison
Yes. The rental deposit surety bond meets all legal requirements under Art. 257e CO and offers the landlord the same security as a traditional bank deposit. In the event of justified claims, the insurer pays the landlord directly.
Ready for the smart alternative?
Calculate your premium now and free up your capital – online, simply and in just a few minutes.
