What is the 3rd pillar?
1. Pillar 3a (tied pension provision): primarily intended for retirement, it offers significant tax advantages by allowing contributions to be deducted from taxable income. For 2025, the maximum amount deductible is CHF 7’258 for employees affiliated with a pension fund. In return, the capital remains locked in until retirement, except under specific conditions (home purchase, moving abroad, starting self-employment).
1. Pillar 3a (tied pension provision): intended primarily for retirement, it offers tax benefits by allowing payments to be deducted from taxable income. By 2025, the maximum amount deductible is CHF 7,258 for employees affiliated to a pension fund. In return, the capital remains blocked until retirement, except for conditions (buying a home, moving abroad, starting a self-employed business).
2. Pillar 3b (flexible pension provision): more flexible, it allows broader use of the accumulated savings through a wide range of investment vehicles (life insurance, investment funds, ETFs, etc.).
BCV 3rd pillar solutions
BCV's offering is structured around three complementary products, each designed to meet different needs and risk profiles.
1. Epargne 3: the classic solution
The Compte Épargne 3 is the foundation of BCV’s offering. It operates like a traditional savings account with a guaranteed interest rate, currently set at 0.10% per year. This solution is intended primarily for individuals who prioritize absolute capital security or who are approaching retirement.
The main advantage lies in its complete flexibility: you contribute what you want, when you want, with no minimum amount or required regular payments. The capital remains accessible under the legal conditions of pillar 3a (retirement, property purchase, self-employment) and is guaranteed up to CHF 100,000 (in the event of bankruptcy).
The main drawback is obvious: with a rate of 0.10%, the return is well below inflation, leading to a gradual erosion of purchasing power over the long term. For an investment horizon of more than 10 years, this solution struggles to generate meaningful wealth accumulation. Compare 3a solutions to find the best interest rate on the market.
Main features:
- Interest rate:0.10% per year (as of November 2025)
- Total flexibility in payments
- No management fees
2. Epargne 3 Youth Account: for 18-30 year-olds
BCV offers a solution for young adults between 18 and 30 years old with an increased interest rate of 0.55% per year. This is more than five times the rate of the standard Épargne 3 account, providing a meaningful advantage during a stage of life when savings are built up gradually.
BCV goes a step further with an incentive for new accounts: when opening an Épargne 3 account and a Portfolio 3 at the same time, the bank doubles your first contribution up to CHF 100. In practical terms, if you deposit CHF 100 at opening, you immediately receive CHF 200 in your account. This creates an instant 100% return that more than offsets the first months of low interest.
This offer provides an appealing entry point for young adults who are discovering pension planning. However, the rate remains modest in absolute terms.
Key features
- Increased interest rate: 0.55% per year (as of November 2025)
- Only for 18-30 years old
- Bonus for CHF 100 at opening (subject to conditions)
- Same advantages as standard account
3. Portfolio 3 Account: funds investment
Portfolio 3 is BCV’s investment offering for those who want to boost their pension savings through the financial markets. The principle is straightforward: instead of leaving your capital in an account earning 0.10%, you invest it in diversified funds with higher return potential, while accepting market fluctuations.
No brokerage fees or custody administration charges are applied, and the investment is accessible starting from CHF 200, which makes it suitable for anyone looking to begin gradually.
No brokerage fees or custodian administration fees are charged, and investment is accessible from CHF 200, This opens the door to those who wish to start gradually.
Key features
- Choice between 4 investment strategies
- Investment from CHF 200
- Potential superior performance to traditional savings
- Risk of capital fluctuation
The four Portfolio 3 strategies in detail
BCV Pro Patrimoine (curator)
The most conservative strategy, with low equity exposure. It aims for capital stability with a modest but steady return, and a TER (annual costs) of 1.01% per year.
Over 5 years, the fund shows an annualized return of just 0.20%, which raises questions about the relevance of this strategy. Over 3 years, performance improves to 3.73% annualized, and over 1 year to 2.47%. This variability in results reflects the challenges faced by very conservative strategies in a prolonged low-interest-rate environment.
BCV Pension 25 (growth)
This strategy contains around 25% equities and 75% bonds, offering a balance between security and return, with a TER of 1.11% per year.
The fund delivers 1.85% annualized over 5 years, 5.12% over 3 years, and 4.75% over 1 year. It suits investors with a medium-term horizon (5–15 years) who can accept some fluctuations in exchange for a return that is somewhat more attractive than purely bond-based solutions.
BCV Pension 40 (growth)
With around 40% equities, this strategy increases growth potential while maintaining a significant bond base, with a TER of 1.2% per year.
The results are solid, with 3.58% annualized over 5 years, 6.54% over 3 years, and 6.65% over 1 year. This strategy offers a good balance between return and controlled volatility, as reflected in its positive Sharpe ratios. It is suited to investors with a long investment horizon (15–25 years) who seek meaningful capital growth while accepting moderate fluctuations.
BCV Pension 40 (growth)
The most aggressive strategy, with around 70% equities. It aims to maximize long-term returns at the cost of potentially significant fluctuations. It has a TER of 1.3% per year.
The results are the highest in the range, with 5.69% annualized over 5 years, 7.59% over 3 years, and 8.08% over 1 year. Volatility is understandably higher (9.39% over 5 years), but the Sharpe ratios remain positive, indicating a return that adequately compensates for the risk taken. This strategy suits young investors with a very long horizon (25–40 years) who can absorb market fluctuations and aim to maximize their retirement capital.
Fee analysis: what does Portfolio 3 really cost?
The TER (Total Expense Ratio) fees for the Portfolio 3 range span from 1.01% to 1.31% depending on the chosen strategy. These fees include fund management, administrative, and operational costs. They are deducted automatically and directly reduce the reported return.
Compared with passive management offers (such as index funds at 0.25% fees), BCV funds are significantly more expensive. The absence of brokerage and custodian administration fees partially compensates for this, but the difference remains significant. Recent results (notably Pension 70 with 5.69 % over 5 years) suggest that the funds are generating enough performance to justify the fees, but past performance is obviously no guarantee for the future.
Pillar 3a highlights at BCV
- Simplicity and proximity: BCV favors a clear and accessible approach, without excessive complexity. For residents of the Canton of Vaud, the proximity of a branch can facilitate procedures and personalized advice.
- Attractive offer for young people: The increased rate of 0.55% and the premium of CHF 100 represent a real effort to attract young savers. It's a great way to get started in life insurance.
- No brokerage or administration fees: Portfolio 3 stands out for the absence of hidden fees. The only costs are the TERs of the funds, which greatly simplifies the calculation of net returns.
- Total payment flexibility: There's no minimum amount or compulsory regular payments. You can tailor your savings to your needs, which is ideal for irregular income streams.
- Correct recent performance: Dynamic strategies (Pension 40 and 70) show respectable results over 3 and 5 years, even if the data do not yet cover a full market cycle.
Pillar 3a weaknesses at BCV
- Very low interest rate on traditional savings: At 0.10%, the Compte Epargne 3 offers an almost zero return, which cannot counter inflation. Over the long term, this guarantees a loss of purchasing power.
- No passive management options: At between 1.01% and 1.31% depending on the strategy, these fees are significantly higher than passive management offers.
- No brokerage or administration fees: Portfolio 3 stands out for the absence of hidden fees. The only costs are the TERs of the funds, which greatly simplifies the calculation of net returns.
- Disappointing performance by Pro Patrimoine: With 0.20% annualized over 5 years and fees of 1.01%, the conservative strategy is hardly convincing. It does barely better than the savings account, while exposing the investor to market risk.
Get your personalized comparison
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Conclusion
BCV's 3rd pillar offers a solid solution for Vaud residents who prefer a reliable cantonal bank and simple products with no hidden charges. The Compte Épargne 3 remains suitable for short horizons thanks to its security, while the Épargne 3 Jeunes really stands out thanks to a better rate and an attractive entry premium.
For a long horizon, Portfolio 3 is the most coherent option: recent performance has been decent, even if TER fees remain high compared to passive approaches. The absence of brokerage and administration fees partially offsets this point.
Its limitations are clear: a limited range, perfectible transparency and an unconvincing conservative strategy. Investors looking for greater personalization or clarity will have to consider other players.
For a young working people over 20-30 years of age, the combination of Épargne 3 Jeunes + Portfolio 3 Pension 70 is probably the best way to take advantage of the benefits of this offer while building a solid retirement capital.
