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Zero Balance Accounts

A Zero Balance Account (ZBA) is a checking account in which a balance of zero is maintained by automatically transferring funds from a master account in an amount only large enough to cover expenses.

The ZBA service is designed for businesses that maintain a general operating account and separate accounts for payroll, petty cash, or other purposes. With ZBAs in place, all of the company's funds are concentrated into a single account. Disbursements are made from subsidiary accounts, which always maintain a zero balance. This account system allows the company increased investment opportunities and reduces administrative expenses.

 

Key Benefits

  • Eliminates time spent on manually funding subsidiary accounts
  • Eliminates the need to track balance levels and funding requirements
  • Saves clerical time and expenses
  • Maximizes funds available for investment and minimizes the risk of overdraft fees
  • Permits easy tracking of transfers and reconciliation through cross-referencing account numbers on bank statements