Professional surplus account: everything you need to know before choosing

What is a professional surplus account?

A professional surplus account is an account into which a company deposits its surplus cash in order to make it grow.

Like the Livret A passbook account for individuals, this is a guaranteed account, with funds available at any time and interest known in advance.

Why do companies open a professional surplus account?

When things are going well, a company has surplus cash after paying its debts and current expenses.

According to a study carried out in July 2020 on 2,051 French companies with between 1 and 50 employees, the average cash position was €79,000.

This cash can be left in the company's current account. But this would be a waste, as it would only be dormant money, as the business current account does not earn interest.

A better strategy would be to deposit them in an interest-bearing account to earn interest.

The Professional Surplus Account is an interest-bearing account in which a company can deposit unused funds and recover them at any time.

The cash surplus account is a short-term investment solution.

Customer reviews of surplus accounts

Professional surplus accounts have both positive and negative points:

Customer benefits

Here are the most sought-after advantages for companies wishing to invest their surplus cash:

• Fund liquidity. As this is a short-term investment, the company must be able to access the funds at any time should the need arise. This is what distinguishes it from a term account, where funds can only be withdrawn at the end of the term stipulated in the contract.

• Interest calculated and paid at regular intervals. Customers appreciate monthly interest payments, for example. This allows funds to grow quickly.

What companies say about this type of product

Users also have complaints about this type of product:

• A low interest rate compared to other investments. In return for the availability of funds, interest rates are generally lower than on term accounts, for example.

• Minimum thresholds imposed by certain establishments . Some banking solutions require a minimum threshold to open a business surplus account. This can be a handicap for small businesses.

• The requirement to have a current account with the same bank. This is usually an obstacle for some companies that have a bank account with a digital bank or a physical establishment.

Comparison of the best offers on the market

The now inevitable competition between traditional banks and neo-banks is all the more relevant when it comes to offering surplus business accounts.

Traditional banks

Here are the highlights of surplus business account offers from traditional banks:

• Sometimes better returns in the medium to long term

• More varied solutions and adapted to different investment horizons and company sizes

• More personalized support with access to a dedicated advisor.

Traditional bank offers also have disadvantages:

• Account opening formalities often take longer

• Access reserved for companies already have a professional account

• Generally lower interest rates

• Often higher management or opening fees

Solutions offered by neobanks

Neobanks are generally appreciated for flexibility. The professional surplus accounts they offer have the following characteristics:

• Fast, paperless account opening through a website or application

• Competitive interest rates

• A transparent pricing system often with reduced costs

• Quick access to funds

Why Hero stands out with its innovative solution

Hero stands out for its innovative offerings:

• An interest-bearing current account . In other words, the company does not need to open a second account dedicated to cash surpluses.

• Interest calculated daily and paid monthly

• Competitive yield at 3% p.a.

Criteria to assess before opening a professional surplus account

Faced with the competition on the market, you need to analyze the relevant criteria before choosing the cash surplus account best suited to your needs.

Interest rates and remuneration conditions

What is the interest rate? How often is interest paid and calculated?

These are the parameters you need to take into account before subscribing to a given offer. Compare offers to find the one that's right for you.

Fund accessibility

• Are funds available at any time?

• Under what conditions?

• Some accounts offer quick access to funds.

Others impose withdrawal penalties or notice periods. With Hero for example, your funds are totally liquid.

Choose the most flexible offer to be able to access funds as soon as the need arises.

Investment guarantees and security

• Are funds guaranteed?

• What guarantees are offered?

• Are funds protected by a deposit protection fund or a bank guarantee?

Always bear in mind that the funds must earn interest, of course, but you also need to be able to dispose of them easily .

Open a professional surplus account with Hero

Launched in 2020, Hero is an all-in-one payment solution, combining payment gateway, business account offerings tailored for VSEs/SMEs and other financial functionalities.

Hero's professional surplus account lets you achieve an annual yield of 3%. . Interest is calculated daily but paid monthly.

Your funds are available at any time. To open one, you must :

• Have a pro account validated by our teams

• Make at least 5 card payments

In short, opening a professional surplus account is a real solution for optimizing the management of cash surpluses in a company.

It's a good way to make the most of available cash, while ensuring that it's readily available when you need it. Hero offers a professional surplus account that combines accessibility and competitive interest rates.