Zero Balance Account
A Zero Balance Account can help minimize idle funds and administrative expenses normally associated with monitoring multiple accounts.
How can a zero balance account help your business?
This service is useful for companies with multiple locations and branches that have a need to maintain separate accounts for record keeping or audit purposes but want to automatically concentrate these funds at the end of the day.
Benefits of a ZBA account
- Concentrate funds automatically at the end of the day
- Automate manual transfers to fund accounts
- View corporate liquidity as a single account; not multiple accounts
- Maintain separate deposit and payment records
- Avoid idle fund balances pending payment of checks
- Gather funds from multiple locations or branches
Features of a ZBA account
- Target balance can be set at any amount, usually zero
- Multiple secondary accounts can tied to a primary funding account
- Detailed check and deposit records are available for each account
- Multiple tier account arrangements are available
How to Get Started
To take full advantage of the concentration of funds into a primary account through ZBA, you may also want to use our Automated Sweep to insure that idle balances are always fully invested.
- Establish a secondary account for your company’s stores, offices and locations that need the flexibility to make deposits and write checks
- Assign each secondary account a target balance
- Establish primary concentration account to pool funds
- At the end of the day, funds are swept into or out of the primary account based on each secondary account’s target level.
