What is a deposit guarantee without a bank deposit?

With a classic bank deposit you pay up to three months' rent into a blocked account in your name that you can't touch. With a deposit guarantee without a bank deposit, Swisscautionen24 provides that security instead: we issue a deposit certificate to your landlord and guarantee the deposit amount. You pay an annual premium – your money stays with you.

Legally the certificate is deposit insurance under Art. 257e of the Swiss Code of Obligations. For the landlord it has the same function as a bank deposit.