All businesses will have a cash surplus at some point, even if only temporarily. If it is not in a position to determine precisely when it will need the cash, a savings account provides a suitable investment solution.

To open a savings account with a bank you must have a current account with the same bank. A savings account is opened in the same way as a current account, i.e. presentation of the articles of association (or the draft version thereof if they have not yet been filed with the Trade and Companies Register - Registre de Commerce et des Sociétés) and any other documents required by the bank to prove their source of income and business activity (balance sheets, list of shareholders, etc.). The bank will also require the list of authorised signatures and the identity documents of the persons with a power of attorney with respect to the account in question.

Description of savings accounts

Application terms and conditions

Amount: there is no minimum amount for a savings account. It can even have a zero balance temporarily, but it can never be overdrawn.

Credit interest: a savings account earns credit interest at a higher rate than a current account, but in general at a lower rate than a term deposit for a large amount.

Holder and proxy: the holder of a savings account, called the account holder, can also give power of attorney to third parties, who are then called proxies.

Set-up times

The time required to open a savings account depends on various factors, including, for example, the banking relationship between the business and the relevant bank, the legal status of the business or company, the applicable law of the company (Luxembourg or foreign law), etc.

Advantages and disadvantages

Advantages

• risk-free investment;
• permanent availability of the money;
• flexibility of cash management;
• low costs;
• higher interest rate than for an interest-bearing current account.

Disadvantages

• in principle, lower interest rate than for a term deposit;
• loss of value dates.