How many bank accounts should I have?

Ideally, you should spread your money across at least three types of account.

1. A private account

You need a private account for your salary, pension or other regular income. You should use this account for everyday banking transactions and payments. Different banks charge different account management fees. Some don't even charge any. You should therefore compare offers to find the best conditions for your needs.

2. A savings account

Private accounts don't generally earn any interest. Therefore, put any money that you don’t need for everyday life into a savings account. The best way to do this is to set up a monthly standing order that automatically transfers money from your private account to your savings account, thus helping you to save. Savings accounts currently offer an interest rate of more than 0.6 percent. You can use a savings account to save for short-term goals, like your next summer holiday, or to pay for unforeseen expenses. Open a separate savings account for each savings goal with a corresponding note (“Holiday,” “Tax,” etc.). This will make budgeting easier for you. At Migros Bank, you can open as many savings accounts as you need without incurring any additional costs.

Please note: the number of free withdrawals is limited for savings accounts.

3. A pillar 3a account

If you want to build up savings for your individual retirement provision, we recommend making regular payments into a pillar 3a account. This also provides fiscal advantages: 3a payments are fully deductible from your taxable income up to the maximum annual amount. In 2024, the maximum sum for employees with a pension fund is CHF 7056 tax-free. Once you've saved about CHF 50,000 in a pillar 3a account, you should open another one. That way, you can later withdraw your retirement savings in stages and save tax again.

4. A custody account

If you want to earn even more, it makes sense to invest part of your assets in shares or bonds. A Migros Bank custody account enables you to manage all your securities simply, securely and inexpensively.

Sven Illi is a customer advisor at Migros Bank.