With a bank solution you do not have risk coverage, but you do have more flexibility. Additionally, with a bank you do not have to pay into pillar 3a every year. Nevertheless, regular payments make sense. You can compensate for the lack of insurance protection if necessary with separate risk insurance. Also, a pillar 3a plan with a bank does not have a fixed contractual end date. Insurance policies, by contrast, often expire at the same time as your retirement date. In the worst-case scenario, they have to be drawn out in the same year as your pension fund assets if you decide on a lump-sum payment from your pension fund. This can have negative effects on your tax burden due to progressive taxation.