Many businessmen keep their financial surpluses in their current company account. Meanwhile, banks offer business deposits, which, although small, provide a profit free of any risk. In addition, they guarantee free access to savings, and at the same time they can be opened and closed at any time....
In practice, business deposits (also called corporate deposits) have similar properties to their counterparts from the individual offer. Differences, if any, usually occur only to the minimum amount from which a deposit can be made. At the same time, this means that businesses using such products benefit in principle from the same set of advantages as individual customers. What does it consist of?
Free access to money
Contrary to appearances, a business investment does not have to be connected with long-term "freezing" of capital. The banks offer not only deposits made for 3, 6, 12 or 24 months, but also monthly, weekly or even one-day deposits (so called overnight deposits). It is therefore easy to invest in short-term deposits and renew them successively, while maintaining free access to financial surpluses. Moreover, even if an entrepreneur opens a long-term deposit and after a certain period of time has to close it before the expiry date for various reasons, he will not suffer any more serious consequences - at most he will lose some or all of his interest.
A business deposit is a sure and pre-recognized profit.
Business deposits are usually subject to a fixed interest rate, i.e. one which, regardless of the economic situation or market trends, will not change during the term of the deposit. This is particularly beneficial from the perspective of corporate finance management, because at the very beginning of the investment you know exactly what the profit will be.
It is also possible to negotiate with the bank
For those entrepreneurs who have more cash at their disposal, some banks are able to negotiate the terms of a business deposit, i.e. the interest rate or deposit term, as well as the method of interest payment. In order to take advantage of such a facility, one needs to have at least 100 or even 200 thousand zlotys at one's disposal, but one can also find institutions where the threshold is much lower. At Deutsche Bank, for example, negotiations can start from as little as PLN 25,000 or from as little as PLN 10,000 in foreign currencies.
It is worth mentioning that the terms and conditions of company deposits can usually be negotiated not only in bank branches, but also often by phone or via Internet banking.
How to open a business deposit?
A business deposit is generally closely linked to the current account with the bank offering it. If the customer is already a holder of a company bank account, whose deposit is interested in it, the formalities related to opening a deposit usually take literally less than a minute. Then it is usually enough to click on the appropriate tab in the transaction system and choose the "make a deposit" option or call the bank's hotline. Earlier, the trader must of course consider what amount, in what currency and for what period of time he intends to deposit.