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Is there any benefit to opening many Swiss 3a savings accounts instead of just one. With the low limit on 3a savings, more than one account seems extravagant, but maybe I'm wrong. Can you name any special benefits of saving in more than one 3a account?
Hi there,
The benefits of opening multiple 3a savings accounts are:
1. Deposit protection. Money deposited in Swiss bank accounts is insured up to a maximum of CHF 100,000 per customer and bank. However, the guarantee only covers deposits up to a limit of CHF 6 billion per bank, which means that not even CHF 100,000 of your savings are covered in every case. If you have accounts at two different banks, you benefit from double this guarantee, so there is much more chance of your assets being fully protected. Read the moneyland.ch guides to depositor protection and bank failure protection for more information.
2. Stagerred withdrawals. 3a retirement savings accounts must be cashed out in full and closed in one go when you retire. Keeping all of your retirement savings in one account means that you need to cash out the whole lot in one go. Receiving hundreds or even tens of thousands of francs extra in one tax year can push you into a higher tax bracket and result in your hard-earned retirement savings being decimated by income and wealth taxes. Keeping your money in several bank accounts allows you to cash out the money in separate tax years, avoiding large windfalls and subsequent tax penalties.
Best regards from Moneyguru
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