Pillar 3a: Account vs. fund

The provision account allows for tax-privileged saving. With the provision account, the money is deposited in an interest account or a funds account, partially invested in securities (shares, funds, bonds).

Overview chart

	Interest account	Funds account
Interest and funds accounts in comparison
Fees	None	Purchase/sale of fund shares
Closing of account	According to legal requirements	Sale of fund shares at current daily rate According to legal requirements
Changing providers	The credit balance can be transferred to another provider at any time	First, fund units have to be sold (with profit or loss) Then the money can be transferred to another provider
Interest rate	Interest is fixed No risk of loss	Interest not known in advance Risk of loss
Interest yield	Fixed interest yield Limited yield opportunities within retirement interests	Fluctuating interest yield Higher yield opportunities
Payment	Money that is paid into account is completely credited No percental use for the purchase of fund units	Money that is paid into account is only partially credited Percentage use for the purchase of fund units

Provision accounts allow for a legal maximum deduction from the annual tax declaration. However, the interests offered by the differnt prividers vary. Changing the provision account to a provider with a higher interest rate is worthawhile in the long-run.

Excerpt from the comparison chart

Provider	Interest rate (%/year)	Amount at time of payout CHF	Saving advantage CHF
3a account
Banque CIC (SUISSE) retirement account 3a	2.000%	323,700	52,403

BSI provision account 3a	2.000%	323,700	52,403

Cornèr Bank SA Cornèr 3rd Pillar	2.000%	323,700	52,403

Generali / BSI provision account 3a	2.000%	323,700	52,403

Swisslife Provision Account 3a	1.000%	271,297	0

Zürcher Kantonalbank Saving 3 Accounts	1.000%	271,297	0

	Example

	Payment amount	CHF 6,739
	Assets already saved	CHF 0
	Overall deposited amounts	CHF 229,126
	Your year of birth	1981
	Payment to age	65
	Percentage of shares