The apartment community has given me two options based on the credit risk. I need to pay them a refundable deposit of $1330/- at the time of move-in. It is completely refundable at the time of move-out and they can deduct any repair charges from this deposit. No annual interest will be paid on this deposit.
Alternatively, I can go through a bond agency and deposit $175/-. This amount is non-refundable. Which one is better for me?
Additional information: 1. I have to pay for the damages calculated by the landlord at the end of the lease term irrespective of the $175/- that I pay to the bond provider. In other words, the 175 is just a fee for me to avoid paying $1330/- upfront and the bondholder https://www.suredeposit.com/Public/default.aspx# takes that as a fee. In speaking with existing residents and those who moved out, it looks like they charge anywhere from $600/- to a whopping amount of $1330/-. I live in UTAH. 2. I have an existing CD in place that pays 2.5% APY. I can deposit the $1330/- to that one. I expect to live in this apartment for the next 3 years at least given that we are going to a better school district.