What is the return on a bank 3rd pillar?

The return depends on the type of investment chosen. A 3a savings account yields between 0.5% and 1.5% per year. An equity investment fund can generate between 4% and 7% over the long term, but with greater volatility. Management fees (TER) reduce the net return.

Can you change your investment strategy along the way?

Yes, most banks allow you to modify your investment strategy (switch from a savings account to funds, or adjust the equity/bond allocation) without penalty. This is a major advantage over insurance.

What happens if the bank goes bankrupt?

Bank 3a assets are protected by the deposit guarantee up to CHF 100,000.- per depositor per bank. For investment funds, the assets are segregated and do not form part of the bank's bankruptcy estate.

Is there a minimum amount to open a bank 3rd pillar?

It depends on the provider. Digital banks and pillar 3a apps often allow you to open an account with no minimum amount and invest from the first franc. Traditional banks may require an initial deposit of CHF 500.- to CHF 1,000.-. Fully digital solutions (such as pension apps) generally offer the lowest fees and complete management from your smartphone, making them an increasingly popular option.

Bank 3rd Pillar: Complete Guide 2026, Funds, ETFs and Returns

The bank 3rd pillar is the most flexible pension solution. It allows you to choose between a simple savings account and high-performing investment funds, without duration commitment. Discover how to make the most of a 3rd pillar with a bank.

What is a bank 3rd pillar?

A bank 3rd pillar is a pillar 3a pension account opened with a bank. Unlike the insurance 3rd pillar, it does not include risk coverage (death, disability) and focuses exclusively on savings and investment.

The bank 3rd pillar can take two main forms:

3a savings account: a fixed-rate deposit, with no risk of capital loss, but modest returns.
3a investment fund deposit: your capital is invested in funds (equities, bonds, mixed, ETFs) for higher return potential, with fluctuation risk.

The 3a savings account

The 3a savings account is the simplest and most secure form of the bank 3rd pillar. Your capital is deposited in an interest-bearing account, with no risk of loss.

Characteristics

Interest rate: generally between 0.5% and 1.5% in 2026, depending on the bank
Guaranteed capital: no risk of loss (within the deposit guarantee limit of CHF 100,000.-)
No management fees: unlike funds, no TER (Total Expense Ratio)
Liquidity: withdrawal possible according to pillar 3a legal conditions

The 3a savings account is suitable for people close to retirement (short-term horizon) or with a strong aversion to risk. For young savers, the return is generally insufficient to offset inflation over the long term.

3a investment funds

3a investment funds allow you to invest your capital in diversified assets for a higher long-term return. This is the preferred solution for savers with an investment horizon of 10 years or more.

Types of available funds

Equity funds: 40% to 99% equities. Highest return potential (4-7% per year historical average), but significant volatility. Recommended for young savers with a horizon of 15+ years.
Mixed funds: combination of equities and bonds. Typical allocation: 25% to 45% equities. Good risk/return compromise for a 10 to 15-year horizon.
Bond funds: mainly bonds. Moderate return (1-3%), low volatility. For cautious profiles or a 5 to 10-year horizon.
ETFs (index funds): funds that replicate a stock index (SPI, MSCI World, etc.) with very low fees. Increasingly popular for pillar 3a thanks to their transparency and efficiency.

3a fund fees

Fees are a crucial element as they directly impact your net return. Here are the main fees to watch:

TER (Total Expense Ratio): annual fund management fees, deducted automatically. Range from 0.10% (passive ETFs) to 1.50% (active funds). Over 30 years, the difference between a 0.2% and 1.2% TER can represent tens of thousands of francs.
Issue and redemption fees: commissions charged on the purchase or sale of fund units. Some banks waive them to attract clients.
Account maintenance fees: some banks charge annual fees for the 3a account. More and more providers are waiving them.
Transfer fees: in case of transfer to another provider, fees may apply (generally CHF 50.- to 100.-).

Advantages of the bank 3rd pillar

Contribution flexibility: contribute any amount you want, whenever you want (within the annual limit of CHF 7 258.-). You can also skip a year without penalty.
Investment choice: adapt your investment strategy to your risk profile and investment horizon.
Transparency: fees and performance are clearly displayed and comparable between providers.
No duration commitment: unlike insurance, you can stop contributing or transfer your assets at any time.
High return potential: equity funds historically offer the best long-term performance.

Disadvantages of the bank 3rd pillar

No risk coverage: in case of death or disability, your loved ones receive only the accumulated capital, without additional protection capital.
No guaranteed capital: with investment funds, the value may temporarily decrease. You must accept short-term fluctuations.
Personal discipline required: without a contractual obligation, you must commit to contributing regularly. No mechanism forces you to save.
No premium waiver in case of disability: if you become disabled, no one continues to contribute for you (unlike insurance with a waiver clause).

How to choose your bank for the 3rd pillar?

Here are the essential criteria for comparing banking offers:

Total fees (TER + account fees): favour providers with the lowest fees, especially for investment funds.
Fund selection: check the range of available funds (equities, bonds, ETFs, sustainable funds).
Historical performance: compare past returns (over 5, 10, 15 years) of the proposed funds, taking fees into account.
Mobile app and interface: a good digital experience facilitates tracking and contributions.
Splitting option: some banks allow you to split between savings account and investment funds.

Optimal strategy for a bank 3rd pillar

Define your risk profile: the longer your horizon, the more risk you can take (equities).
Choose low-fee funds: ETFs and index funds offer the best cost/performance ratio.
Contribute at the beginning of the year: rather than in late December, contribute from January to maximise investment duration.
Open multiple accounts: spread your assets across 3 to 5 accounts to optimise taxation at withdrawal.
Stay invested: avoid selling during downturns. Over the long term, financial markets are historically bullish.

Bank or insurance: the right choice

The bank 3rd pillar and the insurance 3rd pillar address different needs. For a detailed comparison, see our guide bank or insurance: how to choose.

Since 2026, you can also take advantage of the retroactive buy-back to fill years where you did not contribute the maximum. Ready to get started? Discover how to open a 3rd pillar in a few simple steps, use our online comparator or request a free personalised quote.

Bank 3rd pillar: complete guide