Company daily allowance - trade and business

Which banks offer corporate call money?

Here are some well-known banks and financial institutions that offer such accounts:

1. Deutsche Bank
2. Commerzbank
3. DKB (Deutsche Kreditbank)
4. ING-DiBa
5. Santander Bank
6. HypoVereinsbank
7. DZ Bank
8. NordLB
9. Landesbank Baden-Württemberg (LBBW)
10. Landesbank Hessen-Thüringen (Helaba)

It is important to note that the conditions and interest rates offered can vary depending on the bank. It is therefore advisable to compare the offers of the various providers in order to find the right corporate call deposit account that meets the needs and requirements of the company. In addition to the banks mentioned above, regional savings banks and credit unions can also offer corporate call deposit accounts.

Online providers and neo-banks for corporate call deposit accounts

These banks operate exclusively online, without physical branches, and allow companies to open and manage their accounts online. Some of the well-known online providers for corporate per diem accounts in Germany are:

1. N26 Business: N26 offers special business accounts for companies that can be opened and managed online. They also offer options for call money accounts.
2. Penta: Penta is a digital bank for business customers that also offers call money accounts for companies.
3. Kontist: Kontist is an online bank for freelancers and the self-employed. They also offer call money accounts for business customers.
4. Finom: Finom is a digital banking platform that specializes in small businesses and the self-employed. They also offer call money accounts.

These online providers make it easy to open an account and usually offer user-friendly online banking platforms as well as additional features specifically tailored to the needs of businesses. Companies can submit the required documents digitally and have round-the-clock access to their accounts and transactions.

Why you need a corporate call money account

A call money account is an important tool for companies to ensure their financial stability and liquidity. Here are some reasons why it is important for a company to have a call money account:

1. Emergency reserve: a call money account serves as an emergency reserve for unforeseen expenses or financial shortfalls. Companies can deal with unexpected costs such as repairs, legal matters or other unforeseen events by drawing on the balance in their call money account.
2. Liquidity management: A call money account enables companies to manage their liquidity effectively. By separating the operational business account from a call money account, companies can ensure that they have sufficient funds for day-to-day business operations at all times. This helps to avoid financial bottlenecks and meet payment obligations on time.
3. Interest income: Call money accounts generally offer higher interest rates than normal business accounts. Companies can therefore earn interest income and use their capital profitably, even if it is not immediately needed for operational requirements. This additional income can be used to increase business growth or cover other costs.
4. Flexibility: Unlike long-term investments or blocked accounts, a call money account allows companies to access their funds quickly. This is particularly important when short-term investment opportunities arise or when quick decisions need to be made regarding financial matters.
5. Risk minimization: A call money account is a comparatively safe form of investment. Companies can park their surplus capital in a call money account to protect it from the risks of other investments. This reduces the risk of losses and preserves the financial stability of the company.
6. Creditworthiness: Maintaining a call money account can have a positive effect on a company's creditworthiness. A solid financial cushion in a call money account shows potential lenders that the company is able to meet financial obligations and maintain good financial health. This can lead to better credit terms and more favorable financing options.

What documents are needed when opening an account

The exact documentation required to open a corporate demand deposit account can vary depending on the bank and the specific requirements. In general, however, companies will need the following documents:

1. Commercial register excerpt: An extract from the commercial register is an official document that contains information about the company, such as the company name, registered office, management and legal form. The extract from the commercial register can be requested from the local court responsible for the company.
2. Business registration: A copy of the business registration is usually required to prove the existence and legitimacy of the company.
3. Proof of identity of the management: Proof of identity such as a valid identity card or passport of the company's management is usually required. Other documents may also be requested to verify identity.
4. Tax documents: It may be necessary to provide tax documents such as the company's tax number or VAT identification number.
5. Proof of authorization: Companies may need to prove that they are authorized to open a corporate per diem account. This can be done, for example, by providing a copy of the memorandum and articles of association or a power of attorney.
6. Financial information: Some banks may also require information about the company's financial situation, such as the latest annual accounts or current business figures.

It is advisable to contact the chosen bank or financial institution directly before opening an account to clarify the specific requirements and necessary documentation. In this way, the company can ensure that it provides all the necessary documents and information to make the account opening process run smoothly.

Disadvantages of a company per diem account

Although there are many advantages to a corporate per diem account, there are also some potential disadvantages that companies should consider:

1. Lower returns: compared to long-term investments such as stocks or bonds, call money accounts tend to offer lower interest rates. The returns are generally lower as it is a safe investment. If a company is willing to take higher risks, alternative investment options could potentially offer higher returns.
2. Inflation: The returns on an overnight deposit account may not be enough to offset the rate of inflation. If inflation is higher than the interest rates on the call money account, this actually means a loss in the value of the capital over time. Companies must therefore carefully consider whether to park their money in an overnight money account or invest it in other assets that may be better protected against inflation.
3. Limited availability: Although call money accounts offer quick access to capital, they may not be as flexible as other types of accounts. There could be limits on the number of transactions allowed or the minimum balance. In some cases, notice periods might also apply to withdraw the money from the call money account. This can lead to restrictions, especially if the company needs to access its funds quickly.
4. Tax aspects: Interest income from a call money account is generally subject to taxation. Tax rates may vary depending on the country and tax legislation. Companies should consider the tax implications and possibly seek professional advice to understand and optimize the tax burden.
5. Opportunity cost: By parking money in a call money account, companies may be foregoing other investment opportunities that could potentially offer higher returns. There is always the possibility that alternative investment instruments, such as shares or bonds, could generate better returns in the long term. Companies should therefore carefully consider their investment strategy, taking into account their financial objectives and risk tolerance.