Bank account for rental deposit in Switzerland

Dear forum members,

I moved to Switzerland three days ago and have rented an apartment. The landlord expects me to open a rental deposit savings account for the deposit.

I have two questions about this:

1. Which bank has the most affordable rental deposit savings account?

2. At which bank will I earn the most interest?

I understand that a single bank probably does not offer the lowest costs and the highest interest. I am just looking for basic facts as I am new and inexperienced in Switzerland.

A rental deposit account is an escrow account managed by a bank on behalf of a landlord and a tenant. Neither the landlord nor the tenant can access the money held in the account without the other's consent.

When you rent a home, it is up to the landlord to select a bank with which to open a rental deposit account. However, landlords may give tenants a choice or accept suggestions with regards to which bank to work with. This is beneficial to you as a tenant because you can suggest an account which pays the highest available interest rate.

Interest rates for rental deposit savings accounts are often similar or identical to those of Swiss savings accounts. Currently, rates are very low, as shown by the interactive savings account comparison on moneyland.ch.

About fees and charges: Most rental deposit savings accounts are free of charge (like other Swiss savings accounts). However, there are exceptions. For example, the Zürcher Kantonalbank (ZKB) charges 20 francs when you transfer the money from your ZKB rental deposit savings account to an account at a different bank at the end of your rental term. Other banks charge fees when closing your account: The Zuger Kantonalbank charges a 20-franc fee when the account is closed. Raiffeisen banks charge closing fees (typically 15 francs) which vary between branches.

You can find more information on rental deposits in Switzerland here.