Rental Deposit in Switzerland: Amount, Refund & Insurance 2025
By Immoswipe Editorial Team · Last updated: 28 June 2026 · Guide: Renting in Switzerland · 6 min read
The rental deposit (Mietkaution) is a significant sum for most tenants – and at the same time one of the most misunderstood topics in Swiss tenancy law. How much can it be? What happens to the money? When do you get it back? And is deposit insurance worth it?
This guide answers all key questions about the rental deposit in Switzerland – clearly and based on current Swiss tenancy law (Art. 257e CO).
🔗 Tip: Also read "Renting an Apartment in Switzerland: Process, Costs & Tips" for a complete overview of the renting process.
Quick Answer
The rental deposit in Switzerland is capped at a maximum of 3 net monthly rents (Art. 257e CO). It is paid into a blocked bank account in the tenant's name. Deposit insurance is available as an alternative to a cash deposit. After moving out, the deposit must be returned within a reasonable time once all claims are settled.
Further Reading: Swiss Tenancy Guides
How high can the rental deposit be?
Under Art. 257e of the Swiss Code of Obligations (CO), the rental deposit for residential apartments is capped at a maximum of 3 net monthly rents. Any higher amount written into the lease is void by law – you would only need to pay the legal maximum, even if the contract states a higher figure.
| Net monthly rent | Maximum deposit (3 months) |
|---|---|
| CHF 1,000 | CHF 3,000 |
| CHF 1,500 | CHF 4,500 |
| CHF 2,000 | CHF 6,000 |
| CHF 2,500 | CHF 7,500 |
The 3-month cap applies to residential rentals. Commercial rentals are subject to freely negotiated terms.
The rental deposit account
The most common form of rental deposit in Switzerland is a cash deposit in a blocked deposit account. Key points to know:
- The account is held in your name as the tenant, not the landlord's name.
- The landlord can only access the account with your written consent or by court order.
- The account is blocked – neither you nor the landlord can freely draw from it.
- Interest earned on the account belongs to you as the tenant.
- After move-out and settlement of all claims, the account is dissolved at your instruction.
You can open a deposit account at any major Swiss bank. UBS, Raiffeisen, PostFinance and cantonal banks all offer dedicated rental deposit accounts.
Deposit insurance as an alternative
A deposit insurance (also called a surety bond or Kautionsbürgschaft) replaces the cash deposit with an insurance guarantee. You pay an annual premium instead of blocking capital.
The main providers in Switzerland are:
- Swiss Caution (swisscaution.ch) – approx. 3.5% of the deposit amount per year
- firstcaution (firstcaution.ch) – similar price range
- goCaution (gocaution.ch) – digital-first alternative
Important: With deposit insurance, if the insurer pays the landlord for damage claims, they will claim that amount back from you. You remain liable for any damages, even if an insurer initially covers the payout.
Cash deposit vs. deposit insurance: a comparison
| Cash deposit (blocked account) | Deposit insurance | |
|---|---|---|
| Capital tied up | Yes (full deposit amount) | No |
| Ongoing cost | Lost interest (minimal in low-rate environment) | Approx. 3–5% of deposit per year |
| Liable for damages | No (deposit covers it directly) | Yes (insurer claims back from you) |
| Landlord acceptance | Universally accepted | Usually accepted, rarely declined |
| Best for | Those with capital who think long term | Those who need to preserve liquidity |
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After moving out and completing the apartment handover, the landlord must release the deposit within a reasonable time. In practice, this typically takes 1 to 3 months to allow for:
- Inspection of the apartment for damages
- The final utility billing to be completed
- Any outstanding rent claims to be resolved
If you completed the handover correctly (full protocol, no outstanding claims), you can request the release of the deposit in writing and set a reasonable deadline for the landlord to act.
If the landlord withholds the deposit: what to do
The landlord may only withhold the deposit for legitimate claims: damages beyond normal wear and tear, or outstanding rent and utility debts. Arbitrary withholding is not permitted.
Steps to take if the deposit is withheld unjustifiably:
1. Written demand
Contact the landlord in writing requesting deposit release, with a reasonable deadline (e.g. 14 days).
2. Contact the mediation authority
If no response: submit a mediation application to the cantonal rental dispute mediation authority. This is free of charge and straightforward.
3. Seek advice from the Tenants' Association
Get advice from the Swiss Tenants' Association (Mieterverband) – especially if you dispute the landlord's damage claims.
Checklist: rental deposit Switzerland
- ☐ Check the deposit amount in the lease (maximum 3 net monthly rents)
- ☐ Choose between cash deposit (blocked account) or deposit insurance
- ☐ Open deposit account in your own name and make the payment
- ☐ Keep the payment confirmation
- ☐ At move-in: create a complete handover protocol noting all defects
- ☐ At move-out: complete a second handover protocol
- ☐ Request deposit release from landlord in writing
- ☐ If unjustifiably refused: contact the cantonal mediation authority
Conclusion: pay correctly, get your deposit back safely
The rental deposit protects the landlord from damage – but Swiss law also protects you as a tenant. Anyone who knows the rules, chooses the right account and documents the handover carefully will get their deposit back without problems after moving out.
Looking for a new apartment? On immoswipe.ch you can find rental apartments across Switzerland and register your profile in the tenant pool.
FAQ: Rental Deposit Switzerland
1. How high can the rental deposit be in Switzerland?
Maximum 3 net monthly rents under Art. 257e CO. With a net rent of CHF 1,500, the deposit may not exceed CHF 4,500. Higher amounts in the lease are void.
2. What is a rental deposit account?
A blocked bank account in the tenant's name. The landlord can only access it with the tenant's written consent or by court order. Interest earned belongs to the tenant.
3. When do I get my rental deposit back?
After move-out and settlement of all claims – in practice 1 to 3 months. With no defects or outstanding debts, the landlord has no grounds to delay.
4. What is deposit insurance and is it worth it?
An insurer guarantees the deposit instead of a cash payment. You pay approx. 3–5% of the deposit per year, with no blocked capital – but you remain liable for damages and the insurer will claim back any payouts from you.
5. What do I do if the landlord withholds my deposit?
Send a written demand with a deadline. If no response, file a mediation application with the cantonal rental mediation authority. Seek advice from the Swiss Tenants' Association if needed.
🔗 Also read: "Renting an Apartment in Switzerland: Process, Costs & Tips"
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