Pillar 3a providers compared: bank, insurance and apps
Bank, insurance or pension app: with Pillar 3a the provider determines costs, return and flexibility and thus the final capital over the long term. Compando compares the Pillar 3a providers and shows which one fits your profile.
1. Which Pillar 3a providers are there in Switzerland?
In Switzerland there are three provider types to choose from for Pillar 3a, differing in offering, costs and flexibility:
- Banks offer the largest selection, from the Pillar 3a account to the retirement fund, such as PostFinance, UBS or Raiffeisen.
- Insurers couple saving with risk protection in the event of death or incapacity to work, such as AXA, Helvetia or Swiss Life.
- Pension apps rely on ETF and index-fund portfolios with low fees, such as VIAC, finpension or frankly.
For taxes all are equal: the deduction applies up to the maximum amount, the personal tax saving depends on income and canton of residence.
The legal security is also the same everywhere: banks and insurers are subject as institutions to the Swiss Financial Market Supervisory Authority (FINMA). Your 3a capital itself lies in a legally independent pension foundation under the BVG and foundation supervisory authority, held separately from the provider's assets. In a bankruptcy it therefore does not fall into the bankruptcy estate.
2. Bank, insurance or Pillar 3a app: what are the differences?
The biggest differences lie in flexibility, contractual commitment and risk protection.
A bank solution can be adjusted at any time in contribution and investment strategy and suits savers from safety-oriented to return-oriented. The costs, however, differ strongly between institutions.
An insurance solution is worth it above all when there is a protection need, for instance in young families with a single main income. Anyone who already has an existing 3a policy should regularly check the saving share and costs.
A pension app is the cheapest option and is aimed at digitally minded savers. The leading pension apps differ above all in fund selection and equity allocation, which with some reaches up to 99 percent. All three provider types also offer sustainable variants. Only a small share of them goes beyond a pure ESG filter.
Precisely for the self-employed it comes down to whether only saving or also risk protection in the event of death and incapacity to work is in the foreground. That determines whether a bank, an app or an insurance fits.
The differences at a glance
Criterion | Bank | Insurance | Pension app |
|---|---|---|---|
Return potential | medium to high | low to medium | medium to high |
Flexibility | high | low | very high |
Minimum term | none | partly 5–10 years | none |
Provider switch | anytime | limited | anytime |
Risk protection | no | yes | no |
3. How do the costs of Pillar 3a providers differ?
Just 0.5 percent higher fees can mean around CHF 20'000 less pension capital over 30 years, because the compound interest effect works on less capital. Still, the fewest Pillar 3a savers compare their total costs.
Decisive is the net return after deducting all costs, not the gross return. Between the provider types the fee differences often even exceed the return differences: from the cheap app to the more expensive insurance policy.
Typical total costs per year
Provider type | Typical total costs (TER) | Effect over 30 years |
|---|---|---|
Bank (savings account) | only interest difference | lowest costs, low return |
Bank (securities) | approx. 0.5–1.0 % | medium cost effect |
Insurance | approx. 1.0–1.5 % | highest cost effect |
Pension app | approx. 0.3–0.6 % | lowest cost effect |
Calculate Pillar 3a wealth with your own figures
A fee difference of 1 percent quickly costs over CHF 40'000 in final capital over 30 years. Tip: In Compando's wealth calculator you enter contribution amount, investment strategy and risk tolerance and immediately see which pension capital is realistic.
4. Can I switch my Pillar 3a provider?
Banks and pension apps can usually be switched without problems. With insurers, longer contractual commitments often apply instead.
With banks and pension apps the balance is fully transferred to the new provider, tax-free and without waiting time. With insurers, an early exit can instead be linked to losses: the surrender value in the first years is often below the amount paid in, unlike with the withdrawal at the end of the term.
With an existing insurance policy it is worth looking at the surrender value, contract terms and notice periods before a switch.
5. Conclusion: how to find the right Pillar 3a provider
The one best Pillar 3a provider for everyone does not exist. Which solution is the best depends on costs, return, flexibility and your personal situation.
These rules of thumb help with the choice:
- High return and digitally minded: a pension app
- Security and stability: a bank savings account
- Securities with a broad selection: a bank securities solution
- Risk protection in the event of death or incapacity to work: an insurance solution
- Maximum flexibility: a pension app or bank
Not the best-known provider is automatically the best choice. Because costs, return and flexibility differ strongly, a neutral Pillar 3a comparison is worth it.
Compare Pillar 3a providers directly
Which provider fits your profile is shown by the direct comparison by fees, equity allocation and minimum deposit of all Swiss providers.
