Pillar 3a comparison: account, fund or securities?

A pillar 3a comparison sets the form of investment, the costs, the flexibility and the balance between security and return potential side by side. This article shows how a 3a account, a 3a fund and a securities solution differ on these points, with figures and the legal position for 2026. It contains no provider ranking.

The first and second pillars are under pressure because the population is ageing and pensions have to be financed for longer. The reform of occupational pension provision was rejected at the ballot box in September 2024, so the minimum conversion rate in the mandatory part stays at 6.8 percent (Art. 14 para. 2 BVG). The reasons are covered in the article on demographic change. The article on Switzerland’s 3-pillar principle explains how the system is built.

Pillar 3a is the tax-privileged form of private pension provision. Anyone paying in chooses between several pillar 3a investments, and these differ markedly in return, risk and costs.

The most important facts in brief

• A pillar 3a comparison sets four points side by side: form of investment, costs, flexibility and the balance between security and return potential.
• Maximum contribution 2026: ordinary contribution CHF 7,258 with a pension fund, up to CHF 36,288 without one (Source: BSV, as at 2026).
• Retroactive buy-in: The rule has applied since 1 January 2025. First buy-ins are possible in 2026, to a maximum of CHF 7,258 per buy-in year (Art. 7a BVV 3). Only gaps from 2025 onwards can be bought back (Source: BSV, as at 2026).
• 3a accounts: In September 2026 the median interest rate across 107 compared accounts was 0.2 percent, with a range from 0 to 1 percent (Source: Evaluno, data as at 3 September 2026).
• Securities solutions offer higher return potential over long periods, but they fluctuate in value and can bring losses.
• Tax deduction: Contributions are deductible from taxable income in every form of investment (Art. 33 para. 1 let. e DBG).

What matters most in a pillar 3a comparison?

What a comparison looks at depends on the form of investment: account, fund or securities solution. The following sections name the features by which an offer can be assessed.

The 3a savings account in comparison

When comparing 3a savings accounts, these points matter most:

• Interest: The account does not fluctuate in value, but it yields little. The differences between providers are still large: in September 2026 the range ran from 0 to 1 percent.
• Fees: Providers differ in their fees for a regular withdrawal, for switching provider and for early withdrawal, for example for home ownership, taking up self-employment or moving abroad. How the payout works is explained in the article on the 3a payout.
• Protection if the bank fails: The balance in a 3a account is not covered by the deposit guarantee. If the bank fails, it is nevertheless a privileged claim in the second creditor class up to CHF 100,000, in addition to the person’s other deposits (Art. 37a para. 5 BankG). Securities in a 3a solution belong to the pension foundation and are surrendered to the foundation if the bank fails (Source: esisuisse).

3a funds and 3a securities solutions in comparison

Higher return potential in pillar 3a depends mainly on the equity share, and therefore on price fluctuations. Equities can be held in pillar 3a through 3a funds, through a provider’s investment strategies and, with some providers, also as direct investments in individual securities (see Pillar 3a pension plan: Direct investments). The investment rules of occupational pension provision apply by analogy (Art. 5 para. 3 BVV 3). Equities may be held directly or through collective investments (Art. 53 para. 2 BVV 2).

For 3a funds and securities solutions, these features can be compared:

• Equity share: The performance of 3a funds differs widely depending on the equity share.
• Total Expense Ratio (TER): This ratio sums up the ongoing costs of a fund. It reduces the net return every year.
• Issue and redemption fees: If a provider charges them, the issue fee is due on every purchase of units, which in pillar 3a means every contribution, and the redemption fee on a sale.
• Custody fees: Some providers charge an annual custody fee, others do not.

How does investing in securities work in pillar 3a?

A securities plan in pillar 3a is an agreement with a bank foundation (Art. 1 para. 1 let. b BVV 3). The contribution goes into the pension account at the foundation, which invests the money according to the chosen strategy. The securities legally belong to the foundation and are allocated to the individual pension saver.

The foundation must spread the assets across different asset classes, regions and economic sectors (Art. 50 para. 3 BVV 2). For equities a limit of 50 percent of assets applies (Art. 55 let. b BVV 2). Based on its regulations, the foundation may exceed that limit if it conclusively demonstrates in the notes to the annual accounts that it selects, manages and monitors its investments with care, takes care to secure the fulfilment of the pension purpose and spreads risk appropriately (Art. 50 para. 4 BVV 2). Conversely, a 3a balance may also go entirely into a capital-preserving product or a bond of good credit quality (Art. 5 para. 3 BVV 3). That is why the equity shares of 3a strategies differ widely.

In practice the offers differ as follows:

• Implementation: Some providers rely on index funds or ETFs, others on actively managed funds, still others on a portfolio of individual securities.
• Choice of strategy: If a solution offers several strategies with different equity shares, the provider’s terms set out whether a later switch costs anything.
• Minimum amounts: There is no statutory minimum amount. Each provider sets its own thresholds.
• Switching and withdrawal: When switching provider, the old and the new foundation decide whether securities are transferred in kind. If the transfer or withdrawal is made in cash, the foundation sells the units at the price prevailing at the time. If prices are low, the loss becomes final. More on this in the article Cancel & switch pillar 3a.

For direct taxes there is no difference between account and securities: until they fall due, pillar 3a entitlements are exempt from direct taxes (Art. 84 BVG). Only the withdrawal is taxed.

How much interest does a 3a account pay in 2026?

In September 2026 the median interest rate across 107 compared 3a accounts was 0.2 percent, with a range from 0 to 1 percent (Source: Evaluno, data as at 3 September 2026). Another survey with a different method, the unweighted mean across 94 providers, gave 0.27 percent in November 2025, compared with 0.61 percent in the same survey in January 2025 (Source: moneyland.ch, November 2025).

The Swiss National Bank left its policy rate at 0 percent on 24 September 2026 (Source: SNB, 24 September 2026). Inflation stood at 1.0 percent in September 2026 (Source: BFS, 1 October 2026). At 0.2 percent interest and 1.0 percent inflation, an account balance loses about 0.8 percent of purchasing power per year in real terms, as long as both figures stay as they are.

By contrast, the account balance is not exposed to market prices. A return clearly above what accounts currently pay generally comes with value fluctuations and possible losses.

Will 3a accounts soon pay better interest again?

Nobody can predict that. 3a interest rates follow the general interest rate level. Dan Urner, editor at moneyland.ch, remarked in a press release of 6 November 2025 that the generally falling level of interest rates had left its mark on the third pillar as well (Source: moneyland.ch, November 2025). Some providers already pay more than the median. In September 2026 the range ran from 0 to 1 percent. Switching provider is possible. An account holds money without price risk. The choice between an account and pillar 3a securities remains a question of horizon and of willingness to bear fluctuations.

How does a pillar 3a investment develop over time?

Over short periods an investment with equities fluctuates strongly, including downwards. Over long periods there is more time to recover losses, though there is no guarantee of this. An account, by contrast, does not fluctuate in value. The table sets the solution types side by side.

Classification of the solution types, not actual performance and not a forecast. Higher return potential comes with higher value fluctuations. Terms and fund data vary by provider.

What role does the equity share play in retirement savings?

For retirement savings this means:

• A savings account does not fluctuate. A market slump therefore cannot reduce the balance, even shortly before withdrawal.
• The level of the equity share has a large influence on how much a solution fluctuates and how much it can yield.
• Bonds also fluctuate in price, for example when interest rates rise. A low equity share therefore does not rule out losses, including over a short horizon.

With investment strategies, past performance helps to gauge how a provider works. It is no guarantee of future results. Not all providers publish their figures. That makes comparison harder.

Providers, products, risk and taxes: further comparison points

Beyond the form of investment and the costs, a comparison also covers the provider’s legal form, the risk and the taxes.

Bank or insurance company: key differences

Pillar 3a exists in two legal forms: as a pension agreement with a bank foundation and as pension insurance with an insurance company (Art. 1 para. 1 BVV 3). The differences lie in the structure:

• A 3a policy combines insurance cover, for example for death or disability, with saving for retirement. Part of the premium pays for the cover and does not go into the investment.
• The policy usually runs for many years. If it is cancelled early, the policyholder receives the surrender value. In the first years the surrender value can be well below the premiums paid.
• In 2023 FINMA found that transparency and information when life insurance policies were taken out were often insufficient. It had examined over 85,000 policies concluded between January 2020 and March 2021. The review covered life insurance in general, not only pillar 3a (Source: FINMA, 23 August 2023).
• A bank solution separates saving from cover. Risk protection, if wanted, is added there as separate insurance.

How do risk and retirement savings fit together?

As with any investment, more return potential means more risk in pillar 3a. Avoiding risk entirely also has a price, namely the real loss of value on the account as long as the interest rate is below inflation.

An important factor is the investment horizon. The longer it is, the more time remains to recover from a market slump (see Stock Market Crash). The closer withdrawal comes, the less time there is for that. Some providers lower the equity share gradually on request as withdrawal approaches. With sustainable strategies there is the further question of the criteria by which a provider selects its investments; more on this in the article on ESG.

Seat of the pension foundation

Anyone who leaves Switzerland and then draws the 3a balance pays a source tax, at federal level (Art. 96 DBG) and at cantonal level (Art. 35 para. 1 let. g StHG). The federal tax is the same everywhere. For cantonal and communal tax, the law of the canton in which the paying foundation has its seat applies (Art. 38 para. 1 let. b StHG). The seat of the pension foundation therefore also determines this part of the tax burden.

Pillar 3a and investments outside it: the differences

Pillar 3a and investments outside it complement each other. They differ as follows:

• Taxes: Contributions to pillar 3a are deductible from taxable income (Art. 33 para. 1 let. e DBG). On withdrawal, the capital is taxed separately from other income (Art. 38 DBG). At federal level one fifth of the ordinary rate applies. Investments outside pillar 3a carry no deduction.
• Availability: Investments outside pillar 3a are available at any time and have no maximum amount (for pillar 3a see Pillar 3a maximum amount 2025 and 2026). The 3a balance is tied and can be withdrawn early only in the cases set out by law.
• Retroactive buy-in: Since 1 January 2025, contribution gaps can be bought back, in addition to the ordinary contribution (Art. 7a BVV 3). This is possible only for gaps from 2025, and the first buy-in is possible in 2026 for the year 2025. A maximum of CHF 7,258 in total per buy-in year is permitted, the full ordinary contribution must have been paid in the year of the buy-in, and earned income subject to OASI contributions must have existed in the years concerned. Gaps from no more than ten preceding years can be bought back (Source: BSV, as at 2026).

Frequently asked questions about the pillar 3a comparison

What matters most in a pillar 3a comparison?

Four points: the form of investment (savings account, 3a fund or securities solution), the costs and returns (TER, custody and withdrawal fees, and for an account the interest rate), the flexibility (switching, early withdrawal, moving abroad) and the balance between security and return potential. How much each point weighs depends mainly on the investment horizon: the shorter it is, the less time remains to recover price losses.

Savings account or securities solution in pillar 3a, which is better?

Neither is better in general. A 3a account does not fluctuate in value but loses purchasing power in real terms as long as the interest rate is below inflation. A securities solution with an equity share can yield more over long periods, but it fluctuates and can also bring losses.

How high is the pillar 3a maximum contribution in 2026?

In 2026, employees with a pension fund can pay in up to CHF 7,258 as the ordinary contribution. People without a pension fund, such as the self-employed, can pay in up to 20 percent of their earned income, up to a maximum of CHF 36,288. Both amounts derive from the upper limit amount of the BVG and already applied in 2025. Since 2026 a buy-in of contribution gaps from 2025 is also possible. It requires that the full ordinary contribution has been paid in the buy-in year, and it is limited to CHF 7,258 per buy-in year, even for people without a pension fund.

Is a 3a savings account still worthwhile in 2026?

The tax deduction applies to an account just as it does to securities. The interest, with a median of 0.2 percent (September 2026), is below inflation, which stood at 1.0 percent in September 2026. In real terms the balance therefore shrinks. In return, it does not fluctuate in value.

Which costs matter in a pillar 3a comparison?

For an account, mainly withdrawal and switching fees. For fund and securities solutions, the ongoing total expense ratio (TER) and any custody, issue and redemption fees. Because costs reduce the net return every year, they add up over decades.