31st January 2024

3 interesting alternatives to traditional savings for your business

Given that interest rates remain high and investing your funds in savings accounts doesn’t bring you enough interest, what can you do, as a business, with your excess liquid funds? In this article, Jean-Luc Bermes, Corporate Banking at Spuerkeess, gives you three alternatives to savings that are highly appealing to businesses. Happy reading!

Why is it important to invest your liquid funds?

The interest rate of a current account is 0%; therefore, by placing all your liquid funds in such an account, you miss an opportunity to benefit from additional interest.

Indeed, once you have created a plan for your liquid funds, it is largely to your advantage to place the excess in your savings account, which is more remunerative than your current account. However, several other alternatives exist with even more appealing remuneration in terms of interest, and with little risk appetite.  

What alternatives to savings exist for your investments?

Business savings account

The business savings account is an open-ended product from which it is possible to debit and credit funds at any time. This sight savings account for businesses is suitable both for excess liquid funds in euros over a short term, and over a medium term, with immediate availability.

35-day notice savings account for business

This is a “blocked” savings account, but that can be unblocked 35 calendar days in advance in case of need to access the funds. This account offers a preferential interest rate which is more appealing than a “traditional” savings account.

Deposit account

The deposit is an alternative to the savings account which offers you the same guarantees in terms of recuperation of the initial capital, and therefore does not entail any additional risk. Moreover, the interest rates generated are positive, attractive and vary depending on the deposit duration that you choose. For example, a deposit account is flexible due to the fact that the deposit is made over a short period, ranging from one to two weeks and from one to 12 months, while the fixed rate deposit can extend up to 10 years. During the period that you select for the deposit, you will not have access to your funds.

How to choose the duration of your deposit?

Ask yourself this question: Will you need access to your money in the near future?

  • You will need to access your money in the next 12 months…

If you have projects in the very near future, such as the purchase of equipment or new fixtures for your business, but in the meantime you wish to benefit from attractive interest rates on your liquid funds (minimum EUR 10.000), opt for a term deposit account. You can therefore deposit your money over a short term, ranging from one month to 12 months.

This flexible solution allows you to access your money at any time while benefiting from interest.

  • You won’t need to access your money in the next 18 months or longer…

Instead of leaving your liquid funds dormant in your current account or savings account for the next 18 months or longer, opt for a fixed rate deposit. You thus select the term most adapted to your needs, ranging from 18 months to 10 years, and benefit from an appealing fixed rate.

This solution allows you to benefit from a more appealing interest rate than the one offered by a traditional savings account.

What are the maturity options for my term deposit?

Spuerkeess offers two options for the maturity of your term deposit:

  • Automatic roll-over at the rate applicable at maturity;

  • Automatic closure of your term deposit and a credit of capital and interest to the linked current account.

Should you seek other alternatives to your savings, our advisers are available to direct you towards the products best suited to your needs.

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