Pillar 3a: Bank, insurance or app?
January 5, 2026
6 min read
arvy's Teaser: Pillar 3a is the easiest way to save on taxes and build retirement wealth in Switzerland. But where should you open it — bank, insurance, or app? Most comparisons online come from providers trying to sell you their own product. Here's the honest decision guide. You know you should be paying into Pillar 3a. Maybe you already are. But whether you have the right 3a solution — that's a different question. The difference between a good and a bad 3a choice can cost you CHF 50,000 to CHF 100,000 over 30 years. In this article, we compare all three options honestly and with real numbers. No sales pitch, no fine print.
Quick facts
📌 2026 maximum contribution: CHF 7,258 (employees with pension fund) / CHF 36,288 (self-employed without pension fund)
📌 Tax savings: approx. CHF 1,500–2,500 per year depending on canton
📌 New from 2026: Retroactive contributions for missed years (from 2025 onwards) now possible — up to 10 years back
The Three Options at a Glance
Regardless of whether you choose a bank, insurance, or app — the tax benefits are identical. Same maximum contribution, same tax deduction, same withdrawal rules. The difference lies in flexibility, costs, and returns.
| 🏦 3a Savings Account | 🛡️ 3a Insurance | 📱 3a Investment App | |
|---|---|---|---|
| Contributions | Voluntary, flexible | Fixed, contractually required | Voluntary, flexible |
| Returns | ~0.5–1.5% interest | ~1–3% (guaranteed + surplus) | ~4–7% (long-term, market-dependent) |
| Costs | None/minimal | High (risk premium + admin) | 0.4–1.0% p.a. |
| Risk coverage | None | Death + disability | None (available separately) |
| Early termination | No problem | Heavy losses (surrender value) | No problem |
| Switching providers | Easy | Expensive / barely possible | Easy |
This table already tells a clear story. But let's look at each option in detail.
Option 1
The 3a Savings Account at a Bank
The classic. You open a 3a account at your regular bank, pay in, and earn interest — currently somewhere between 0.5% and 1.5%. No risk, no effort, no thinking required.
The problem: Over 30 years, inflation eats a huge chunk of your balance. If you start at 30 and contribute the maximum every year until 65, you'd have around CHF 300,000 in a savings account — but with a securities solution averaging 5% returns, it would be over CHF 510,000. That's roughly CHF 210,000 left on the table.
When it still makes sense
If you're less than 5 years from retirement. At that point, the risk of equity market losses is too high to justify the switch to securities. Or if you need the money for a home purchase within the next 3–5 years.
Option 2
The 3a Insurance Policy
This combines savings with insurance coverage: death and disability are covered, and you're "forced" to pay in every year. Sounds sensible at first glance.
The problem: The costs are enormous — and well hidden. Part of your premium goes to risk coverage, part to admin fees, and only the remainder is actually saved. Transparency is minimal. And the biggest catch: if your life situation changes (part-time work, unemployment, moving abroad), you can't just pause. Early termination often costs you 20–40% of your contributed capital.
The uncomfortable truth
3a insurance policies are extremely lucrative for the insurance company and the advisor. Sales commissions on fund-linked life insurance products are among the highest in the entire financial industry. When someone "recommends" a 3a insurance policy, ask yourself: who really benefits here?
The better approach: Separate saving from insuring. A cheap term life or disability insurance costs a fraction of what you'd pay within a combined policy — and your savings capital works unencumbered for you.
When it still makes sense
In rare cases: if you know for certain that without external pressure you'd never save. And even then, there are better options — like an automatic standing order to an investment-based 3a.
Option 3
The 3a Investment Solution (App / Digital Asset Manager)
Here your 3a money is invested in securities — broadly diversified, with a risk profile that fits you. Contributions are voluntary, costs are transparent and significantly lower than insurance.
The advantage: Over long periods (10+ years), historical returns are significantly higher than a savings account. Your money works instead of just sitting there. And you keep full flexibility: pause, switch, cancel — all possible at any time.
"The tax benefits are identical across all 3a options. The only difference you can control is what happens to your money in between."
But not every investment app is the same
When choosing a 3a investment solution, there are two fundamentally different approaches:
Passive ETF solutions invest your money in index funds that track the market. Very cheap, very broad, very automatic. You get what the market gives — nothing more, nothing less.
Active quality strategies invest selectively in carefully chosen companies with strong business models and stable cash flows. Fees are slightly higher, but the goal is a better risk-return profile — especially during corrections.
What actually matters
Passive or active — the critical thing is that you invest in securities at all (if your horizon is 10+ years), that the total costs are transparent, and that you choose a solution where you understand what you own. The most expensive 3a solution is the one collecting dust in a savings account.
The Maths: What 35 Years of Difference Looks Like
Assume you're 30 and contribute the maximum (CHF 7,258) every year until 65. Here are the three scenarios:
35 years × CHF 7,258 = CHF 254,030 contributed
🏦 3a savings account (avg. 1% interest)~CHF 300,000
🛡️ 3a insurance (avg. 2% after costs)~CHF 355,000
📱 3a investment solution (avg. 5% after costs)~CHF 510,000
Difference: savings account vs. investment~CHF 210,000
Assumptions: Annual maximum contribution (simplified to CHF 7,258). Returns are averages after fees. Actual returns vary. Past performance is not an indicator of future results.
CHF 210,000 difference — with the exact same amount contributed, the same tax benefits, the same number of years. The only variable: where your money sat in between.
New from 2026: Retroactive 3a Contributions
Since 1 January 2025, it's been possible for the first time to make retroactive contributions for missed 3a payments. The first actual buy-in can be made from 2026 — for gaps that arose from 2025 onwards.
The key rules
🟢 Up to 10 years retroactively — but only for gaps from 2025 onwards. Older gaps unfortunately cannot be closed.
🟢 Maximum buy-in per year: CHF 7,258 (the "small contribution"), on top of your regular contribution. So in one year you can pay in up to CHF 14,516 total (regular + buy-in).
🟢 Requirement: You must have had OASI-liable income in BOTH the buy-in year AND the year of the gap.
🟢 Order matters: You must first fully contribute the current year's maximum before a retroactive buy-in is allowed.
Pro tip
Use buy-ins strategically in years with high income — that's when the tax deduction is worth the most. And close older gaps first, since the 10-year window is ticking.
The Pro Move: Staggered Withdrawals
One detail that can cost you thousands if you ignore it: when you withdraw your 3a funds, a one-time capital withdrawal tax applies. It's progressive — the more you withdraw in the same year, the higher the tax rate.
The solution: Open multiple 3a accounts and withdraw them in different years. Rule of thumb: once a single account reaches CHF 50,000, open a new one. Married couples take note: both partners' withdrawals are added together for tax purposes.
Important
Existing 3a balances cannot be split retroactively. If you want multiple accounts, you need to maintain them separately from the start. Begin splitting as early as possible.
Which 3a Solution Fits You?
How many years until you retire?
10+ years
→ 3a investment solution. You have enough horizon to ride out market fluctuations.
→ 3a investment solution. You have enough horizon to ride out market fluctuations.
Less than 5 years
→ 3a savings account. Safety first — the risk of losses is too high.
→ 3a savings account. Safety first — the risk of losses is too high.
Do you need life insurance or disability coverage?
No / not sure
→ Investment app. No hidden costs for coverage you don't need.
→ Investment app. No hidden costs for coverage you don't need.
Yes, definitely
→ Investment app + separate term insurance. Cheaper and more flexible than a bundled policy.
→ Investment app + separate term insurance. Cheaper and more flexible than a bundled policy.
Do you already have a 3a insurance policy?
No
→ Good. Go straight to a 3a investment solution.
→ Good. Go straight to a 3a investment solution.
Yes, unfortunately
→ Check the surrender value. Sometimes switching is still worth it — do the maths or get independent advice.
→ Check the surrender value. Sometimes switching is still worth it — do the maths or get independent advice.
Your 3a Checklist for 2026
☐ Check if you've already contributed the 2026 maximum (CHF 7,258)
☐ If you didn't fully contribute in 2025: plan a retroactive buy-in
☐ Review your current 3a solution: savings account? Insurance? Securities?
☐ If savings account or insurance: evaluate switching to an investment solution
☐ Count your 3a accounts: once one exceeds CHF 50,000, open another
☐ Set up a standing order for automatic monthly 3a contributions
☐ Reminder: money must arrive in the 3a account by 31 December
Your 3a with arvy
With arvy, you invest your Pillar 3a in carefully selected quality companies — alongside experienced investors who put their own money in the same place. From CHF 1, full flexibility, no minimum commitment.
Disclaimer: This article is for general information purposes and does not constitute personal financial advice. All figures and projections are based on historical data and assumptions that may change. Past performance is not an indicator of future results. arvy is a FINMA-regulated asset manager. Investing involves risks, including the possible loss of invested capital.
Pillar 3a maximum 2026: CHF 7,258 (employees with pension fund). As of February 2026.
