Thanks for the informative reply...I am making my 2010 Pillar 3a investment on January 4th...That is why I wanted to know what the amount was.

well, a brief search (and my rather limited Deutsch) reveals that the limit is unchanged for 2010. see this, for example...

I was under the impression that the number goes up every year..?

This thread is a treasure trove on 3a Investment. I have a 3a account with Postfinance since 2 years as they offer one of the best interest rates for a normal account. It was 2.75 % earlier and now 2.5%.

After reading the posts here I compared the returns on 3a funds account on Comparis and found 2 of them - Credit Suisse Mixta-BVG Basic (2.9% returns over 3 years) and Swisscanto BVG Eco 3 (3.5% returns over 5 years) better than Postfinance.

Can somebody who has invested in these advice on the pluses and minuses compared to a normal 3 a account ? As I can invest with a view of 3 to 5 years or even more- these 2 funds look attractive to me.

Thanks in advance

The literature on the Credit Swiss BVG fund states...

The investment objective of the investment group is to achieve a
reasonable return in CHF. The investment group invested in
fixed and variable values in CHF, in mortgages and
in indirect real estate investments. The proportion is at
Real estate and mortgage for at least 60% of the
Net assets amount.

The small type on the bottom of the page says ...

Both the Credit Suisse Investment Foundation and Credit Suisse AG does not give regard to the contents and the completeness of this document
and disclaim any liability for losses arising from the use of this information. Unless otherwise stated, all figures are unaudited...

It goes on to say ...

Every investment involves risk, especially those of value and profit fluctuations. Detailed information about
Risks in securities trading is the brochure "Special Risks in Securities Trading", issued by the Swiss Bankers Association. To note
is that historical returns and financial market scenarios are no guarantee of future results.

There appear to be two major risks; the first is the value of the CHF they are hedging their bets on; the second the stability of the housing market; which as I am sure you are aware has collapsed more then once in the UK in the last few decades. (Currently struggling)...

Is this a good place for your pension.... maybe, maybe not. Depends how old you are; how much money relative to your assets we are talking about; and if you can afford to lose it...all.

Funds are exposed to market risk. If the stock markets rise, then you gain. You could also suffer losses. I prefer the risk-free 2.5% from PostFinance.

First time poster here. We bought an apartment and upon the recommendation of the bank, were planning to make contributions to a 3rd pillar account rather than amortize.

From reading through these forums, that does not seem necessarily to work. Our payment annually has to be nearly 9K per year, and both my husband and myself earn enough to mandatorily be part of our company pension schemes ...

Will we be able to make the contribution? or are we being taken for a ride by the bank issuing the mortgage?

Would seem like a win-win to me. You claim back tax on the 6566 x 2 on your tax return (since you both work), and then use it to pay the amortization; sounds like a good plan, why do you think your being taken for a ride?

No simple answer. Depends on your tax liabilities and other factors. Consult a competent financial partner, if you do not trust your Bank.

thanks for the info Dino

When I said "being taken for a ride" I meant that they were selling a plan that does not function. I have to pay 8500 annually to the amortization - or the 3rd pillar account - annually. What I was not made aware of is that this is capped. If I can in fact split the amount between two accounts, namely mine and my husband's, then it works. For now.

I do agree that, if it works, it is a win-win situation, especially since I get to keep the entire mortgage on the books and the interest is deductible ... if it works.

I've just seen that the simple form to reclaim the taxes in canton ZH has changed to a 4-page document this year, and the processing time will be 12-18 months

Can someone explain this to me? Where do I get the form? I put money into my 3rd pillar for 2009 (before December), but don't know what to do now...

Browse through this topic, I'm sure I've mentioned it before. You'll need to fill out a form called 'Antrag auf Korrekturberechnung der Quellensteuer', which you can get from the Steueramt Zürich. It's on their website.

You are right regarding 3a and 3b. But there is a small exception for 3b:
- if you live in canton Geneva or Fribourg you can deduct up to 750chf for a single person and 1500CHF for a married couple.

Thanks! For all, the form is here:
http://www.steueramt.zh.ch/html/form...g-2009_2-r.pdf
Note that you have until March 31st to submit it, otherwise you forfeit the tax return...

Goldtop - Can you direct me to a resource where I can find the law regarding this?

My bank allows me to make the amortization payment via a 3rd pillar account but I have been unemployed since last year. The banker is not certain that I can make the contribution ...

I am unaware of a black-on-white legal text that states this. When I was unemployed, I phoned the ZH tax office. The tax officer said that I could deduct the 3a contribution. Reason: recipients of unemployment benefits are paying AHV contributions. I deducted the 3a and my tax return was approved.

Ask your banker to phone the pertinent tax office or write them an eMail.

It took me more than 12months to get the taxes back last year.

Does anybody know how much taxes I have to pay when I leave switzerland and withdraw my 3rd pillar pension (Canton ZH)?

Depends where the 3a foundation is located. Approx 7% if the "Stiftung" is registered in ZH. You may be eligible for a tax refund.