Rent Deposit in Switzerland: Bank Account or Insurance? (2026)
Moving flats and asked to put down up to three months’ rent as a deposit? In Switzerland you have two options: a rent deposit account at a bank (in German Mietkautionskonto or Mietzinsdepot) or rental deposit insurance (Mietkautionsversicherung). The account costs almost nothing, but ties up your money until after you move out. The insurance leaves your savings alone, but costs 4–5.5% of the deposit every year, plus stamp duty and in some cases an administration fee.
The catch with insurance: it’s a guarantee, not protection against damage. If the insurer pays your landlord, it reclaims the money from you. Economically, you borrow the deposit and pay the premium as interest. We’ll look at what the law says, what banks and insurers charge and what each option costs you over several years.
In short:
- You have the money for the deposit: a rent deposit account. It’s free at UBS with a fully digital opening, at Migros Bank with paper forms and at Bank Cler except at its Geneva branch.
- You have a securities portfolio: finance the deposit with a Lombard loan, for example at Interactive Brokers at 1.5% interest a year. That’s much cheaper than insurance.
- Tenants with neither savings nor a portfolio: only then is rental deposit insurance an option, as a cheaper alternative to a consumer loan. AXA and Helvetia have the lowest rates: 4% plus stamp duty, an effective 4.2% interest.
- With a CHF 6,000 deposit: insurance costs about CHF 250–370 a year, a Lombard loan CHF 90–180. On the account, assuming 1% interest elsewhere, you forgo CHF 60 a year.
Rent deposits in Switzerland: what the law says
You only owe a deposit if your lease says so. The framework is set by Art. 257e of the Code of Obligations:
- At most three months’ rent for residential property. The monthly flat charge or advance payment for utilities counts too. For commercial premises there’s no such ceiling.
- At a bank, in your name. The landlord must place the deposit with a bank in an account or securities account in your name.
- Payout only with a release or on the basis of a payment order or judgment, more on this below.
- Cantons may add rules. Geneva and Vaud have their own extra rules, such as capped opening fees in Geneva.
Overview: rent deposit accounts at Swiss banks
Fees are for a CHF rent deposit account for a flat. Postage, expenses and payment orders may cost extra. The linked bank pages are in German.
| Bank | Opening | Account maintenance | Closing | Interest | How to open |
|---|---|---|---|---|---|
| UBS | Free | Free | Free | 0.01% up to CHF 50,000 | Digital, no signatures (signatures needed from CHF 20,000) |
| Migros Bank | Free | Free | Free | No interest | Paper forms, signed by tenant and landlord |
| Bank Cler | Free, except at the Geneva branch | Free | Free | 0.05% | Online application |
| BEKB | CHF 20 | Free | Free | 0.05% up to CHF 50,000 | Online |
| ZKB | CHF 50 | Free | Free, CHF 20 to transfer the balance to another bank | No interest | Upload signed forms |
| Raiffeisenbank Zürich | CHF 50 | Free | Free | No interest | Downloadable contract |
| St. Galler Kantonalbank | CHF 50 | Not stated | Not stated | 0.05% up to CHF 50,000 | Application by post |
| Valiant | CHF 80 | Free | Not stated | No interest | Online application |
The Raiffeisen figures apply to Raiffeisenbank Zürich, not to every Raiffeisen bank. There, you or your landlord must already be a customer.
Look at the fees first, then the interest. On a CHF 6,000 deposit, 0.05% interest pays CHF 3 a year, so it takes about seven years to earn back BEKB’s CHF 20 opening fee. For a good rate on the rest of your savings, see my savings account comparison.
Opening a rent deposit account: online or on paper
To open a rent deposit account (Mietkautionskonto eröffnen or Mietzinsdepot eröffnen in German), you need the details from your lease: address, deposit amount and landlord. Then you pay in the deposit. How much effort it takes depends on the bank:
- UBS: you fill in an online form, no signatures needed. Only for deposits from CHF 20,000 do you and your landlord sign by hand. You print the deposit certificate for your landlord (Sicherstellung zum Mietvertrag) at the end. You can only open the account from Switzerland.
- Migros Bank: you fill in the forms by hand and send them in by post. Both you and your landlord have to sign.
Rental deposit insurance: what it really costs
Rental deposit insurance isn’t insurance in the usual sense. It’s a guarantee (in German Bürgschaft). The insurer guarantees the deposit to your landlord. If the landlord has a claim that you accept or that has been legally established, the insurer pays and then demands the full amount back from you, often plus fees. You’re never protected against the damage itself.
Economically, it works like a loan of the deposit amount, with the annual premium as interest. You don’t get that interest back, and you still owe any claim from your landlord.
The percentages refer to the deposit, not the monthly rent. Insurance premiums are generally subject to 5% stamp duty, calculated on the premium, not on the deposit (ESTV, in German). A 4% premium therefore costs you 4.2% of the deposit a year. That’s the effective interest rate on the borrowed deposit.
Regular rates without introductory offers:
| Provider | Premium per year | On top | Good to know |
|---|---|---|---|
| AXA | 4% of the deposit | Stamp duty, 4.2% in total | 10% discount with AXA personal liability insurance. Deposits up to CHF 20,000 |
| Helvetia | 4% of the deposit | Stamp duty, no administration fee stated | Deposits up to CHF 18,000 |
| goCaution (ProTect insurance) | 4.5% of the deposit | Stamp duty, 4.725% in total | Minimum premium CHF 94.50 including tax for deposits up to CHF 2,000. No administration, claims or cancellation fee stated |
| SwissCaution (also via Mobiliar and Swiss Post) | 5% of the deposit | CHF 20 administration fee plus stamp duty | |
| Firstcaution | 5% if paid annually, 5.5% if paid monthly | CHF 20 plus stamp duty | If paid annually, the first year has an introductory price that depends on your start date |
| SmartCaution | 5% of the deposit | CHF 25, stamp duty not listed separately on the price page | Flat price of CHF 25–120 in the first calendar year, depending on the start month |
| Zurich via UBS | From CHF 135, tiered by deposit | Deposits above CHF 10,000: 4% plus CHF 60 |
For small deposits, the minimum premium matters: goCaution charges at least CHF 94.50, Zurich via UBS from CHF 135 a year.
When the landlord claims money and when you cancel
| Provider | If the insurer pays, … | Ending and refunds |
|---|---|---|
| SwissCaution | you repay the amount, plus a CHF 100 administration fee | With a signed release and the original certificate, or with replacement security your landlord agrees to |
| Firstcaution | it demands repayment within 30 days | Cancel with at least 30 days’ notice before the end of the calendar year, with the release documents. Pro-rata refund on request, minus CHF 20 |
| SmartCaution | you repay the amount, plus a CHF 100 processing fee | Pro-rata refund minus CHF 25 |
| goCaution | you repay the amount, in instalments over at most six months | The premium runs until the contract is dissolved |
| Helvetia | you repay the amount including costs and interest | The first insurance year’s premium is due in full, pro-rata refunds after that |
| AXA | you repay the amount | With the landlord’s written confirmation and the returned guarantee document. Unused premium refunded pro rata |
| Zurich | you repay the amount including interest and costs | Flexible cancellation with the required documents, according to UBS |
Important: moving out alone doesn’t end the guarantee. It only ends when your landlord releases it or another ending event in the terms applies. Whether you keep paying premiums until then varies: at goCaution, the premium runs until the contract is dissolved, at AXA it ends with the tenancy.
Financing the deposit with a Lombard loan
If you have a securities portfolio, there’s a cheaper option: borrow the deposit against your portfolio with a Lombard loan and pay it into a rent deposit account yourself. In Swiss francs, that costs 1.5% a year at Interactive Brokers, 2.0% at Saxo (Classic) and 3.0% at Swissquote, much less than the effective 4.2% of the cheapest insurance. BLKB charges a similarly low 1.45%, but like other cantonal banks only lends from CHF 50,000.
Your portfolio stays invested. The risks:
- Falling markets. If your portfolio drops sharply, you have to add money or reduce the loan. Interactive Brokers usually sells positions immediately in that case. The smaller the loan relative to the portfolio, the lower the risk.
- Long term. The deposit stays blocked for as long as you rent the flat. The loan runs just as long, at a variable rate.
Worked example: a CHF 6,000 deposit over 1, 3 and 5 years
Assumptions:
- Rent of CHF 2,000 a month including utilities, deposit of three months’ rent, so CHF 6,000.
- Insurance at regular rates, without introductory offers or discounts, without a claim and without price changes.
- Stamp duty of 5% on the whole premium, including administration fees.
- For the Lombard loan: 1.5% interest at Interactive Brokers, without rate changes.
- For the account: without the deposit, you would keep the CHF 6,000 in savings at 1% interest. That’s an assumption, not a specific bank’s offer. Calculated without compounding and without the small interest on the deposit account.
| Option | Effective rate | After 1 year | After 3 years | After 5 years |
|---|---|---|---|---|
| AXA, 4% plus stamp duty | 4.2% | CHF 252 | CHF 756 | CHF 1,260 |
| goCaution, 4.5% plus stamp duty | 4.7% | CHF 283.50 | CHF 850.50 | CHF 1,417.50 |
| SwissCaution, 5% plus CHF 20 plus stamp duty | 5.6% | CHF 336 | CHF 1,008 | CHF 1,680 |
| Lombard loan at Interactive Brokers | 1.5% | CHF 90 | CHF 270 | CHF 450 |
| Rent deposit account, forgone interest | 1% | CHF 60 | CHF 180 | CHF 300 |
With monthly payment at Firstcaution (5.5% plus CHF 20 plus stamp duty), it’s CHF 367.50 a year, an effective 6.1%. The account adds a one-off opening fee of CHF 0–80. You get the CHF 6,000 back after moving out, minus any valid claims from your landlord.
What if you’d rather keep the money invested? Assuming a 4% return, the account costs you CHF 240 a year, about the same as the cheapest premium, but without a guarantee. A Lombard loan keeps you invested for less.
When does rental deposit insurance make sense?
Hardly ever. You pay 4–5.5% of the deposit every year and only get a delay in return: if your landlord claims money when you move out, you still pay it yourself. If you have the money, put it in a rent deposit account. If you have a securities portfolio, a Lombard loan is much cheaper.
The one exception: the tenant really doesn’t have the money and would otherwise need a consumer loan. Depending on the credit rating, that costs up to 10% interest a year. Then insurance is the lesser evil. Even so, it makes sense to save up the deposit as quickly as possible and switch to an account.
How to get your rent deposit back
After you move out, there are three ways the bank pays out the deposit account:
- Joint release. You and your landlord both sign. This is the usual route. The easiest is to sign at the handover of the flat.
- Payment order or judgment. Without a release, the bank pays out on the basis of a final payment order or a final court judgment.
- One-year rule. If your landlord hasn’t asserted a claim through legal channels within one year after the tenancy ends, you can ask the bank to pay you directly.
The one-year rule doesn’t mean the landlord may wait a year before signing. It’s your route if they don’t get in touch after you move out.
With insurance, the landlord releases the guarantee, usually with the original certificate. Several insurers also have a procedure after one year without legal action by the landlord. SwissCaution then informs the landlord and gives them 14 days to respond.
Switching from insurance to a cash deposit
Switching is possible if your landlord agrees. Here’s how:
- Get the consent of your landlord or property manager.
- Open a rent deposit account and pay in the deposit.
- Have your landlord confirm the release of the insurance and send it with the original certificate to the insurer.
- Sort out the premium refund. Each insurer’s rules are in the table above.
Who gets the interest on a rent deposit account?
You do. You’re the account holder and receive the interest. Whether you can withdraw it during the tenancy depends on the bank. ZKB blocks the balance including interest as security.
Can my landlord refuse rental deposit insurance?
Yes. They can require a conventional deposit account at a bank. So check that your landlord accepts insurance before you sign up.
Is a rent deposit account protected if the bank fails?
Yes, as a bank deposit. Deposit insurance protects up to CHF 100,000 per client and bank (esisuisse). That’s not an extra amount: the rent deposit account counts together with your other balances at the same bank. Even if the bank fails, the deposit stays blocked.
Conclusion: rent deposit account or insurance?
For most tenants, a rent deposit account is the better choice. It costs almost nothing, and the money stays yours. My recommendations:
- You want to open the account quickly and digitally: UBS, free and without signatures.
- You don’t mind paper forms: Migros Bank, also free. Bank Cler is free with an online application, except at its Geneva branch.
- You have a securities portfolio but no spare cash: a Lombard loan, for example at Interactive Brokers at 1.5%. That’s much cheaper than any insurance.
- Tenants with neither savings nor a portfolio whose alternative would be a consumer loan: insurance at 4% plus stamp duty with AXA or Helvetia, if the landlord agrees. Then switch to an account as soon as possible.
- You’re moving in together: plan the deposit along with your other shared costs. My comparison of joint bank accounts shows how to organise them.