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The invested rental deposit

Why an invested custody account can be more than just a savings deposit

In Switzerland, it is common practice to deposit rental deposits in blocked accounts. However, this method, which has long been considered safe and reliable, is showing its weaknesses in today's low interest rate environment. This article looks at an innovative alternative: the invested rental deposit, which not only preserves the value of the deposit but can also increase it.

In the Swiss rental landscape, rental deposit is a central component of the rental agreement. Traditionally, these deposits are held in blocked accounts that have earned little or no interest in recent years. For tenants, this means a gradual loss in the value of their deposit, as inflation and account fees are not offset.

Interestingly, this is not only a disadvantage for tenants, but also for landlords: over the years, the deposit loses real purchasing power and can no longer cover the same potential losses at the end of a longer rental period.

The solution could lie in an invested rental deposit . Instead of leaving the money in a low-interest account, it is invested in an ETF (Exchange Traded Fund). This offers the opportunity to let the deposit work during the rental period and possibly achieve a higher return.

Of course, such an investment also involves risks, particularly market fluctuations. It is therefore crucial that both tenant and landlord are in agreement with this form of investment and that the legal framework is observed.

In conclusion, the invested rental deposit offers a promising alternative to traditional blocked accounts. It can not only preserve the value of the deposit, but also increase it under the right conditions, to the benefit of both parties.


Why an invested custody account can be more than just a savings deposit