Deposit guarantee or bank deposit? The five-year cost comparison
What a rental deposit guarantee costs compared with a blocked bank deposit over five years: CHF 6’000 example, comparison table and the hidden costs of moving.
Published on · Swisscautionen24 · 6 min read
Three months’ rent in a blocked account, or an annual premium for a deposit guarantee: which is cheaper? The honest answer is that it depends on how long you stay and whether you have the money in the first place. Here is the full calculation for a typical Swiss flat.
The example: CHF 2’000 rent, CHF 6’000 deposit
Under Art. 257e of the Swiss Code of Obligations a landlord may ask for at most three months’ rent as security for residential premises. For a flat at CHF 2’000 a month that is CHF 6’000, paid into a rental deposit account in your name. The bank releases it only with both parties’ consent, on a payment order or a court ruling.
With a Swisscautionen24 deposit guarantee you pay no deposit. Instead you pay a premium of 4.9% of the deposit amount per year (minimum CHF 180), a CHF 25 administration fee per year and a one-off CHF 50 certificate fee in the first year. Federal stamp duty of 5% is added to premium and fees. From the third year a loyalty discount reduces the premium: 10% in year 3, 20% in year 4 and 30% from year 5.
Five years side by side
| Year | Deposit guarantee | Bank deposit |
|---|---|---|
| Year 1 | ≈ CHF 387 | CHF 6’000 locked, ≈ CHF 10–30 interest |
| Year 2 | ≈ CHF 335 | CHF 6’000 locked, ≈ CHF 10–30 interest |
| Year 3 | ≈ CHF 304 | CHF 6’000 locked, ≈ CHF 10–30 interest |
| Year 4 | ≈ CHF 273 | CHF 6’000 locked, ≈ CHF 10–30 interest |
| Year 5 | ≈ CHF 242 | CHF 6’000 locked, ≈ CHF 10–30 interest |
| Total | ≈ CHF 1’540 paid | CHF 6’000 returned, ≈ CHF 50–150 interest |
The figures speak for themselves: over five years the guarantee costs around CHF 1’540 that you never get back, while the bank deposit comes back in full and even earns a little interest at current rates. If you have CHF 6’000 spare and plan to stay for many years, the bank deposit is the cheaper option. The guarantee does not buy a lower price – it buys liquidity.
Who is better off with which option
- Young people and students: CHF 6’000 is often more than the entire savings account. The guarantee makes the first flat possible at all, and under 26 there is a 10% youth discount on top.
- People moving house: the old deposit is still blocked while the new landlord already wants the next one. A guarantee bridges the gap without a loan.
- Families without a cushion: if the deposit would mean borrowing or giving up the emergency reserve, the premium is usually the smaller evil.
- Savers who stay long: money set aside, no move planned, five years or more in the same flat – open the rental deposit account and keep the premium.
The costs people forget
The table compares only the visible cost. Three items rarely make it into the calculation:
- The double deposit during a move. The old deposit is released only after the handover, and the bank needs the signed release form. For weeks or months you may have CHF 12’000 tied up in two accounts.
- The lost return. CHF 6’000 in a rental deposit account earns almost nothing. The same money in a pillar 3a or a broadly diversified fund would, on average, earn considerably more over five years – with the usual risk.
- The waiting time. Even without a dispute, it takes days to weeks before the bank pays out. If the landlord asserts a claim, the money can stay blocked for up to a year or until a court decides.
Our honest conclusion
Do the maths with your own figures: enter rent and deposit in the calculator on the home page and you see the premium for every year. If you already have a bank deposit and would like the money back, replacing it with a certificate is possible at any time – and switching back later is possible too.
Your money stays with you.
Rental deposit guarantee without a blocked bank account for flats and business premises across Switzerland. Apply online, get your certificate, keep your money.
Apply now