Rental Deposit in Switzerland: What You Must Know (2025 Guide) | Immoswipe

By Immoswipe Editorial Team · Last updated: 19 September 2025

When moving into a new rental apartment in Switzerland, you will almost always encounter one important step: the rental deposit. But what exactly does it cover, how much can a landlord request and what alternatives exist? This guide explains everything you need to know about the rental deposit in Switzerland, including repayment rules, bank accounts, deposit insurance and practical tips for financing.

For a full overview of rental agreements, see our guide: Rental Agreement in Switzerland.

💡 Tip: Preparing for your first apartment? Read our guide Finding Your First Apartment in Switzerland.

What is the rental deposit in Switzerland?

The rental deposit (also called rental guarantee or deposit account) is an amount you provide to the landlord as financial security. It covers situations such as damage to the apartment, outstanding rent or unpaid service charges.

Important: In Switzerland, the deposit may not exceed three months’ rent, regardless of canton or city.

How the rental deposit account works

Most deposits are placed in a blocked bank account in your name. The account is frozen in favour of the landlord until the tenancy ends.

  • The deposit is interest-bearing (usually very low interest rates).
  • You can request the full amount back after the tenancy, provided no claims exist.

When will you receive your rental deposit back?

The deposit is refunded if the following conditions are met:

  • No damages in the apartment
  • All rent and service charges paid
  • Proper handover with a written handover report

Note: The landlord may hold the deposit for up to 12 months if claims are under review.

Alternatives: rental deposit insurance

Instead of blocking several thousand francs in a bank account, you can choose rental deposit insurance. Popular providers include SwissCaution, goCaution and FirstCaution.

You pay an annual premium of around 4 to 6 percent of the deposit amount.

Advantages:

  • No blocked capital
  • Fast online sign-up
  • Useful for students or young professionals

Disadvantage: The premium is not refunded.

Tips for financing the rental deposit

  • Start saving early
  • Ask family members for temporary support
  • Compare deposit insurance options
  • Ask the landlord about instalment payments (may not always be possible)

What to check in the rental agreement

  • Deposit amount (maximum three months’ rent allowed)
  • Deposit type (bank account or insurance)
  • Repayment rules (deadlines, interest, conditions)

Tip: Always request written confirmation from the bank or insurance company.

Regional differences

In major cities like Zurich, Basel or Geneva, a deposit is almost always required. In rural areas, landlords may request lower deposits or none at all.

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FAQ: Rental deposit in Switzerland

1) Is a rental deposit mandatory?
No. However, more than 90 percent of rental agreements require one.

2) Do I have to pay the deposit in cash?
No. Deposit insurance is a recognised alternative.

3) When is the deposit refunded?
After the tenancy has ended and all claims are clarified. Refunds can take up to 12 months.

4) Can I pay the deposit in instalments?
Only with landlord approval. There is no legal right.

5) What happens in case of damages?
The landlord may deduct repair costs from the deposit. A written handover report is essential.

6) Which deposit insurance providers exist?
SwissCaution, goCaution and FirstCaution.