Group account

Group account

Group account is a book account whose assets consist of the balances and reservations on the current account of group members and the overdraft of the group. The group account also allows for analytical accounting of single companies on the basis of profit centres, products and product groups, reporting persons, suppliers, debtors and debtor groups, operation groups, etc.

What options does a group account offer to groups of companies?

  • Creation of an internal loan market
    Group account gives the opportunity to allocate the funds available inside the group to the member that needs them the most at the given moment.
  • The group's need for loans decreases
    The overdraft needed by the group is smaller than the total amount of the overdrafts needed by single members of the group.
  • Decrease of interest expenses
    In the case of a group account, the positive and negative balances of group members balance each other out and the amount to which the overdraft interest rate is applied is smaller.
  • Increase of interest income
    It is possible to earn more interest on the consolidated balance by placing some assets into overnight deposits, for example.
  • Better overview of the group's activities
    You will get an overview of the entire group’s funds, which allows you to manage the group’s assets more efficiently.

Group account statements

Different group account statements can be obtained through the electronic channel and they are available only to the parent company.

  • Group account statement reflects the money movements of the entire group as well as of every member during the selected period by days.
  • Balance statement is a consolidated statement of the average and permanent balances of group members in a certain period.
  • Interest statement gives an overview of the positive and negative internal interest rates established for group members and the interest earned and/or to be paid within the group during the selected period.
  • Group turnover statement gives an overview of the group’s turnover indicating the opening and closing balances by account groups or members and the movements and balances on the account.

Statements can be made more flexible by grouping the accounts of group members (e.g. revenue account, expense account, payroll account, etc.) and by giving names to accounts if necessary.

Entering into the contract

Please contact your administrator in Swedbank if you wish to enter into a group account contract. A group account contract is entered into between the bank, the parent company and the subsidiaries, stating the rights and obligations of the bank, the parent company and the subsidiaries.

In addition to the group account contract, an electronic channel contract is entered into in order to make further communication with the bank as quick as possible.