|Vaba bank Inc. Varaždin provides the service of Cash-pool that enables the members of the Pool a more quality, swifter and less expensive liquidity management.
The advantages of Cash-pool membership and the uses of "internal financing" for the members of Cash-pool are various, but what needs to be pointed out are the more opportune interest rates on funds given to others, but on the funds borrowed from other members as well (internal interest rate).
Cash-pool members that have extra funds on their account, receive interest on two levels - internal interest on the amount of funds borowed to other members of the Cash-pool or regular interest that grows in line with the average account balance. Cash-pool members that utilize other members' funds also pay internal interest rates for funds from the Cash-pool. The interest on the Bank's funds is only paid when the funds from the Cash-pool come to be unsufficient.
Primarily, the funds of the Cash-pool members are utilized first, where the interest rate is lower than on the Bank's funds. Bank's funds are only used when the Cash-pool members funds proove to be unsufficient for payment orders execution.