Digital bank Penta, which works to provide services for small- to medium-sized businesses (SMBs), will now accept overnight and term deposits from Germany's WeltSparen, which can help clients' interest rates, according to a press release.
The new services are being introduced in partnership with FinTech Raisin, with the combination of services offering better value for customers, according to the release, which include tens of thousands of SMBs and freelancers.
Companies "can avoid negative interest rates and invest surplus liquidity at attractive interest rates and with deposit protection in Germany and Europe" with the new cooperation, the release stated.
The partnership with WeltSparen will help companies close and manage numerous investments with one login. The company offers fixed-term deposits and overnight money offers for terms ranging from daily availability to a maximum of six years with an interest rate of up to 2.5 percent per year.
Jessica Holzbach, co-founder and chief customer officer of Penta, said the partnership would expand benefits for customers.
"Through the cooperation with Raisin, we are one of the few digital financial service providers for business that can offer its customers a very good alternative to high costs caused by negative interest rates, such as those that arise after financing rounds of young companies," she said, in the release. "This option, which has long been available to private customers, is now also accessible to business customers at Penta. It’s quick, easy and digital — just as they are used to from Penta."
In March, Penta raised $20.4 million in a funding round and gained new investors.
Last December, Penta started allowing people with a minimum of one employee to sign up for its services. In May, the company began offering its services to those who are purely self-employed with no other employees. Freelancers have been a growing bloc of the American economy amid the pandemic.