Zero Balance Accounts

A Zero Balance Account (ZBA) is a stand-alone checking account that maintains a set balance at all times. The balance maintained could be zero or any other balance desired.

How does it work?

The account is tied to another account designated as the concentration account that holds all funds. Deposits made to the Zero Balance Account are moved to the concentration account after the designated balance is reached. As checks clear the Zero Balance Account, collected funds move from the concentration account to the Zero Balance Account to clear presented items and maintain the designated balance.

Benefits

  • Provides an easy audit trail for disbursements or deposits made for a special purpose such as payroll
  • No time is wasted forecasting cash needed in the ZBA
  • Eliminates manual transfers of funds between accounts
  • Your funds do not sit idle in a checking account while your payments are clearing at your payee’s bank
  • ZBAs and concentration accounts clarify your cash position, allowing you to see when it should be altered to fit new circumstances
  • Prevents any uncollected funds usage within the Zero Balance Accounts 

Call us at 1.800.205.3464 or email us, and we will be happy to help you get started.