Swisscaution or traditional deposit?

[briantheophilus]

I’m currently evaluating whether to stick with a traditional rental deposit at Lienhardt und Partner or switch to Swisscaution, and I could use your collective wisdom.

Based on my calculations, opting for Swisscaution seems justifiable only if I can achieve an investment return of over 5%. Given that I’m not a trader and can’t guarantee such returns, I’m in a bit of a dilemma. While the traditional deposit at Lienhardt und Partner hasn’t been lucrative (the return is so low that I jokingly say I can’t even buy the cheapest croissant from coop with the profit), I’m unsure if switching to Swisscaution is the smarter financial move.

I’m curious to hear from anyone who has navigated this decision. How did you assess the potential returns from your investments against the costs and benefits of Swisscaution?

Edit:
Thanks for all the answers. Traditional deposit it is.

I knew Swisscaution and alternatives didn’t make sense, but I wanted to hear some other perspectives.

 

[rodron]

@briantheophilus Traditional deposit, always.

 

[velden777]

@briantheophilus Swisscaution usually costs 6%.

A traditional bank account yields 1% or 1.25% nowadays.

Therefore, you would need a guaranteed 7% yield with your investment to break even. In CHF, that’s kinda difficult to achieve.

Also, you can see swisscaution as a loan. I don’t take 6% loans ever. Neither should you.

 

[mhg]

@velden777 AXA issued Mietkautionsversicherung for me for about 3.5% per year. Is it really 6% in Swisscaution? Way too high.

 

[emtura88]

@mhg Yeah AXA is significantly cheaper

 

[jaz2001]

@mhg same with AXA in NE 3,5%, in combination with mandatory household insurance which gives 10% discount on the caution premium.

 

[virginiaann]

@briantheophilus It's a tossup at best, a gamble at worst. Personality I'd always keep it traditional.

 

[eaglehearted]

@briantheophilus Life is short go long crypto to hedge