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Glossary

Pillar 3a: Bank vs. Insurance

Pillar 3a: Bank vs. Insurance refers to the comparison between Pillar 3a products offered by banks as pure savings or investment accounts and those offered by insurance companies as tied life insurance policies. Both are recognised under BVV 3 and receive the same tax treatment, but differ significantly in flexibility, risk cover, costs, and the ability to suspend contributions.

At a glance

01

Bank solutions offer full flexibility in the annual contribution amount; insurance solutions often include a fixed premium structure with integrated disability or death cover.

02

Early termination of insurance solutions typically results in a capital loss, as the surrender value falls below the premiums paid.

03

Bank solutions can be held at multiple institutions simultaneously, which makes it easier to implement a staggered withdrawal strategy later.

Frequently asked questions

Bank solutions are generally considered more flexible, as contributions can be freely chosen each year, suspended, or split across multiple accounts. Insurance solutions offer integrated risk cover but often require regular premiums and can be costly to dissolve early. The optimal choice depends on the individual's personal circumstances.

Part of the topic

Säule 3a

Sources: Bundesamt für Sozialversicherungen (BSV)