Is there now a Treasury Opportunity on Counterparty Bank Deposits?

Money Market Deposits have positive value again meaning that interest can be received on excess cash deposits.  Just over a year ago treasurers had to protect excess cash from paying a negative interest but now the tables have turned and treasurers are now searching to optimise positive yields on their cash.

Absolute rates are significant and volatile with Euro short-term rate (€STR) rates around 3.9% and one year Euribor just above 3,75% so there is a business case to seek out the highest risk-adjusted rates possible.  A treasurer does not want to get extra return while increasing their risk so choosing your counterparty wisely is paramount when evaluating the credit rating and outlook and potentially spreading your investments across different counterparties.

The business case for doing bank deposits or even looking into money market funds is clearly there. Especially if your excess cash is currently sitting at sub-optimal interest rates on a current account.  A 10 million Euro bank deposit at 3.8% is c. €7,300 in interest each week.

If you are already doing bank deposits with selected counterparties it should make commercial sense to get competitive quotes in from others who may also be in your banking group or looking to join it in the near future.  A 20bps difference in quotes for interest is not uncommon so the Euro 10 million example above at 4% instead of 3.8% leads to a annual difference of EUR 20,000 in positive cashflow.

So how can your organisation achieve these results in the most efficient and cost-effective manner??

Pecunia has a new and innovative way to solve this problem.  Through collaboration with FinTech Treasury Delta, Pecunia will deliver a bespoke SaaS solution for your requirements and together we will evaluate the proposals in order to seek out the optimal result for your organisation. Via Treasury Delta we are able to get competitive MM quotes in within several days, all in the same platform. Easy to compare and fully transparent. The costs of the tool + consultant are very low due to the speed of the process. A favourable business case can be established promptly

Aside from this bank deposit rfp type transaction, where the process takes days not months, additional treasury opportunities can be presented for your organisation.  This is where Pecunia will add further value and present your CFO and Board with real value propositions from the marketplace. RFP’s are not boring and tedious anymore!

All enquiries will be treated in strictest confidence so please feel free to contact
Pecunia at or call/message Patrick Kunz at 0031636489548.

Patrick Kunz is the managing director of Pecunia Treasury & Finance and As an interim manager, Patrick has been with many companies in his career, he also acts as a treasury consultant for multinationals, SMEs, and non-profit organizations. Patrick holds a master's degree in international business and a post-doc degree in Financial Risk Management (FRM). Next to that Patrick is a charter holder for the qualified treasurer title.