What is a Zero Balance Account?

The zero balance account develops a master account which services an infinite number of secondary accounts. The secondary accounts will be able to complete transactions but they will always have a zero balance because the funds will be controlled by the master account. How Will a Zero Balance Account Benefit You? You will always have control over your disbursements. Extra funds that would otherwise remain idle in secondary accounts can be better used to profit the company through increased cash flow and investment opportunities. In fact, you may set up an investment account specifically for automatic deposits of those extra dollars. Zero balance accounts are completely automatic, extremely convenient, efficient and can actually eliminate overdraft charges resulting from overlooked account deficiencies or miscalculations. You'll always receive a detailed statement for each secondary account, as well as the master account. The zero balance account product allows you greater control ...  more

North Shore Bank's Zero Balance Account (ZBA) automatically funds check disbursement accounts and transfers funds deposited from multiple accounts into your main operating or concentration account. How Does It Work? A Zero Balance Account (ZBA) ensures that funds do not stand idle in multiple accounts. Yet they maintain the integrity of multiple accounts by eliminating the need to manually initiate internal account transfers. You can use a Zero Balance Account (ZBA) for collections, disbursements or BOTH. How your Company benefits. • Eliminate idle funds in your checking account. • Better manage liquidity and overall operating cash. • Investment and funding decisions are made simpler; all funds are concentrated into one main account. • Automated transfers save time and money. • Track cash flows easily with detailed accounting reports. • Zero Balance Account (ZBA) account activity can be grouped into one account analysis statement. Additional benefits: • Keep your companyís cash ...  more

A zero balance account is a financial mechanism that is utilized to make payments, but does not maintain any type of running balance. An example of a zero balance account would be a business checking account that is used to pay vendors of the company, but only contains enough funds to cover the checks that are issued. Generally, the funding for a zero balance account is obtained from another financial account under the control of the business. The concept of a zero balance account may be utilized for several reasons. One of the most common advantages of maintaining a balance of zero in the checking account is that the resources of the business or organization can be housed in other financial accounts that are interest bearing. This means that funds can earn more interest, only being moved into the checking account just before the checks are due to be presented for payment. As a result, the company may achieve a significant amount of interest income over the course of the calendar ...  more

Zero balance accounts are commercial checking accounts that are automatically maintained at a zero balance. Checks written on or deposited to a zero balance account are transferred to a designated funding account on a same-day basis. Pooling of funds in this manner allows for maximum use of cash. Who can benefit from a zero balance account? • Companies that may have multiple depository accounts • Companies that want to reduce the clerical efforts involved in monitoring separate accounts • Companies that want to fund an account on an “as needed" basis How does it work? • You establish a main or funding account and any number of subsidiary accounts for specific purposes, such as payroll, operating expenses, or tax liability, etc.  more