Surety bond guarantee or rental deposit: which one in Switzerland?

In Switzerland, a landlord can require a guarantee equivalent to 3 months' rent before handing over the keys. Two options exist to build it: a classic bank deposit, or a surety bond guarantee taken out with an insurer.

The classic bank deposit

You yourself lock up the equivalent of 3 months' rent in a dedicated rent guarantee account opened with a bank. The money stays yours but it's tied up for the whole duration of the lease - an amount that can run to several thousand Swiss francs, hard to raise right when you're settling in and expenses are already piling up.

The surety bond guarantee

An insurer stands as guarantor with your landlord for the same amount as the bank deposit, in exchange for a reduced annual premium. You don't lock anything up: your savings stay available. In return, the premium paid each year isn't recoverable at the end of the lease, unlike the bank deposit which comes back to you (subject to the condition of the property).

When does a surety bond guarantee make sense?

It's especially relevant when settling in, when available cash is already stretched by many other expenses (moving, first month's rent, furnishing). It lets you sign the lease without tying up a significant sum, at the cost of a modest and predictable annual expense.