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Home : Products and Services : Treasury Services : Treasury Management : Optimizing Cash Resources : Zero Balance Accounts

Zero Balance Accounts

Automatic funding and cash concentration

Zero Balance Accounts (ZBAs) can be an ideal way to keep funds from sitting idle while ensuring you have cash for disbursements and investments. ZBAs automatically transfer funds to or from your master account at the end of each business day in order to offset the net activity in each sub-account. Each sub-account maintains a balance of zero or another predetermined amount.

You can structure ZBAs to accommodate your specific needs, from simple one-collection and one-disbursement arrangements to sophisticated corporate structures that allow several ZBA tiers.

Options:
	Single transfer - automatically nets debits and credits in each sub-account to one entry against the master account, bringing the sub account to zero or another target balance
	Dual transfer - for a more detailed audit trail, shows both a total credit and total debit amount against the master account
	Tiered Zero Balance Accounts - allow each subsidiary or unit of a company to have its own ZBA structure for depositary and disbursement accounts within the holding company ZBA structure, to a maximum of nine tiers

Benefits:
	Convenience - automatically transfer funds to or from your master account at the end of each business day to offset the net activity in each sub-account
	Flexibility - can be structured to accommodate your company's needs, from simple one-collection and one-disbursement accounts, to corporate structures that allow several ZBA tiers
	Control - give cash managers control of funds through the master account, provide an excellent audit trail for company disbursements and related deposits, and clearly indicate transfers on monthly account statements