ᐅ Setting up a blocked account – which bank should I choose?
Created on: 27 Aug 2014 08:28
B
Bauabenteurer
Dear all,
A contractor insists on receiving the retention amount (security deposit), but I would like to deposit it into a blocked account and only release it after 5 years. The problem is that I cannot find any bank that still offers this service. There are still rental deposit options, but nothing else. A bank guarantee is "too expensive" for the contractor. I have already considered simply opening a high-yield savings account, but the contractor considers that "too insecure."
Maybe someone can help or offer a suggestion?
Thank you very much!
A contractor insists on receiving the retention amount (security deposit), but I would like to deposit it into a blocked account and only release it after 5 years. The problem is that I cannot find any bank that still offers this service. There are still rental deposit options, but nothing else. A bank guarantee is "too expensive" for the contractor. I have already considered simply opening a high-yield savings account, but the contractor considers that "too insecure."
Maybe someone can help or offer a suggestion?
Thank you very much!
T
toxicmolotof30 Aug 2014 14:44Hmm, a comparable bank guarantee from a bank costs about 75 euros per year, so for a full 5 years it would be around 375 euros. The difference isn’t that significant. But I would have been surprised if banks and insurance companies showed any variation in price there.
Whether it counts as part of the loan exposure or as insurance… it only matters if the company is already financially strained. In any case, it must be included internally in the loan exposure, as required by law. Some banks just call it by a different name.
Whether it counts as part of the loan exposure or as insurance… it only matters if the company is already financially strained. In any case, it must be included internally in the loan exposure, as required by law. Some banks just call it by a different name.