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Billions of dollars lie dormant in blocked accounts of Swiss tenants. As the “Tages-Anzeiger” newspaper writes, two young companies now doubt that they can do well with idle capital. Because according to their estimates, the value of deposits with extremely low interest rates is currently around 10 billion francs!
According to Marc van Nuffel from Startup Zinsli, the amount deposited in rental deposit accounts by private individuals is currently around 11 billion francs. This averages around 5,000 francs per tenant. An additional 10 billion francs will come from companies. Evorest’s Marc Schuster also expects 8 to 9 billion francs from private individuals and around 6 billion francs from companies.
But inflation eats away at most rental deposits: interest rates are typically just 0.2 percent. A fee of 50 to 100 francs is charged for setting up and closing the account. If the standard savings interest rate of 0.75 percent had been applied to the accounts instead, tens of millions of francs more would have been incurred. Two Zurich companies now want to help tenants achieve higher returns.
Investment instead of blocked account
However, the two companies have different approaches. At Evorest, tenants can choose whether to pay the deposit into a regular account or invest in simple index funds. This means you will benefit from rising stock market prices.
“We provide a tool for managements to give their tenants more freedom of choice,” says Marc Schuster. The first administrations have already taken office. Negotiations were continuing with other very large administrations. But Schuster doesn’t want to say what this is about yet.
However, the following is also true for Evorest’s model: The tenant bears the risk of price loss. However, Marc Schuster explains that this only applies if the damage to the apartment is equal to or greater than the deposit. This is the case in only 1 percent of layoffs. And if it comes to that, Evorest will make up the difference. The tenant must then pay the money back. This means that the apartment owner always has access to the full deposit.
On the other hand, as Marc van Nuffel explained, a marketplace will be created in Zinsli. Tenants should be able to invest in the investment format they like best. Whether it is a blocked account at the bank, a fund, a gold bar or a Bitcoin account. Zinsli’s first partners are already on board. (Snap)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
