Save and invest with pillar 3a

Pillar 3a: savings and investment accounts

A retirement savings account is a tax-efficient way of saving. The money can either be deposited in a savings account or used to open an investment account, which involves investing some of the money in securities (shares, funds, bonds).

Savings account Investment account
Fees
  • None
  • Purchase/sale of fund shares
Closing of account
  • According to legal provisions
  • According to legal provisions
Changing providers
  • The savings can be transferred to an other provider at any time
  • First, fund shares have to be sold (with profit or loss)
  • Then the money can be transferred to another provider
Risk
  • No risk of loss
  • Interest yield not known in advance
  • Risk of loss
Interest yield
  • Fixed interest rate; can be changed any time
  • Yield potential limited by retirement savings interest rate
  • Fluctuating interest yield
  • Greater yield potential
Payment
  • Full amount of sum paid in is credited to account
  • Only part of sum paid in is credited to account
  • Certain percentage is used to purchase fund shares