Why French businesses should stop leaving cash in non-yielding accounts

French companies and individuals currently hold billions of euros in non-yielding accounts. While these deposits may appear safe, the reality is that they generate little to no return, and inflation continues to erode their real value. For businesses and entrepreneurs, leaving liquidity idle on a current account is not only inefficient but also a missed opportunity to enhance financial performance.

This article explains why keeping cash in non-interest-bearing accounts is detrimental, and how modern investment solutions like exchange-traded funds (ETFs)—accessible through a corporate or individual securities account opened directly on the Velesios platform—offer a smarter alternative.

The problem: dormant cash in France

According to the Banque de France, French households and businesses still hold a significant portion of their assets in bank deposits that pay minimal or no interest.

For companies, this practice translates into:

• Loss of purchasing power: inflation erodes the real value of money kept in checking accounts.
• Opportunity cost: capital that could generate returns remains unused.
• Inefficient treasury management: businesses fail to optimize their liquidity.

In a competitive environment, efficient corporate cash management is no longer optional but a strategic necessity.

Why traditional term deposits are not enough

French banks often promote term deposits as an alternative to current accounts. While safer than market investments, these deposits typically lock up capital and still provide very limited returns compared to inflation.

For CFOs and entrepreneurs, this creates a dilemma: how to balance security, liquidity, and performance?

ETFs as a modern alternative for treasury management

Exchange-traded funds (ETFs) provide an accessible, transparent, and liquid way to invest corporate cash. Unlike term deposits, ETFs combine:

• Liquidity: they can be bought and sold daily, ensuring access to funds when needed.
• Diversification: exposure to multiple asset classes—bonds, equities, money market strategies—reduces concentration risk.
• Performance: certain ETFs, such as the Lyxor Smart Overnight Return UCITS ETF or the Amundi EUR High Yield Corporate Bond ESG UCITS ETF ACC, are specifically designed to offer higher yields than traditional savings or deposits, while maintaining controlled risk.
• ESG integration: many ETFs now include environmental, social, and governance criteria, aligning investments with responsible finance.

How Velesios simplifies the process

One of the traditional barriers to ETF adoption has been the complexity of opening a securities account. At Velesios, we remove this friction by offering businesses and individuals a seamless onboarding experience directly on our platform:

• Simple account opening: clients create their individual or corporate securities account entirely through the Velesios interface. We handle the connection with our partner Interactive Brokers in the background, so the process remains smooth and hassle-free.
• Lower costs through order aggregation: by grouping client orders, we are able to negotiate better transaction conditions and reduce fees, making ETF investments more efficient and accessible.
• User-friendly dashboard: designed to make ETF investments as straightforward as traditional banking.
• Tailored solutions: we guide companies in selecting ETFs that match their liquidity needs and risk profile.

By centralizing the process within the Velesios platform, clients enjoy the performance and reliability of Interactive Brokers while benefiting from reduced costs and a simplified user experience.

Conclusion

French businesses should reconsider their approach to treasury management. Leaving liquidity in non-yielding accounts means losing value over time and missing opportunities for growth.

With ETFs, accessed through an easy-to-open securities account on the Velesios platform, companies can achieve a better balance of safety, liquidity, and performance. This shift represents not just financial optimization, but a modern, forward-looking approach to corporate cash management.

FAQ: managing corporate cash in France

Why is it a problem to leave money in non-yielding accounts?
Because inflation reduces the real value of money over time. Businesses that leave cash idle effectively lose purchasing power.

Are term deposits a good option for French companies?
Term deposits offer safety but provide very low returns, often below inflation. They also restrict liquidity since funds are locked for a period.

Why are ETFs attractive for corporate cash?
ETFs provide liquidity, diversification, and often better yields than deposits. Some ETFs are even designed to act as modern cash management tools.

How can French companies invest in ETFs?
Through a securities account (compte-titres). With Velesios, the account is opened directly on our platform, and we connect in the background with Interactive Brokers to ensure execution quality.

Can ETFs reduce costs compared to banks?
Yes. At Velesios, client orders are aggregated to reduce transaction fees, which makes ETF investments more competitive than traditional banking products.

Sources & references

• Banque de France – Household savings
• Interactive Brokers – Brokerage solutions
• AMF – Financial markets regulation in France
• Lyxor Smart Overnight Return UCITS ETF – Factsheet
• Amundi EUR High Yield Corporate Bond ESG UCITS ETF – Factsheet