Use our zero-balance accounts (ZBA) and sweep services to keep cash in your operating account while making your excess money work for you. We offer you the appropriate options to provide you with effective money management tools. Typically, companies use ZBA to eliminate excess balances in segregated accounts and maintain better control over payments. A company transfers exact money to the ZBA account for which it issued a check. Once the cheque is cashed, a balance of zero will be displayed on the account again. ZBA helps the company avoid money in different places. Using a ZBA to fund debit cards issued by the organization ensures that all activities on the cards are pre-approved. As there are no unused funds in the ZBA, it is not possible to make a debit card transaction until the money has been transferred to the account. This can help manage business expenses by limiting the risk of unauthorized activities.

Other reasons for creating separate ZBAs may include the financial management of certain short-term projects or those for which there is a particular risk of unexpected overruns. Using zero-balance accounts avoids excessive fees without proper notification and approval. Increase your company`s profits by automatically investing excess funds from unused accounts and earning interest without requiring additional time or effort. An organization may have multiple zero-balance accounts to improve budget management and make the money allocation process more efficient. This may include creating a separate ZBA for each department or monitoring daily, monthly, or annual fees. By concentrating the funds in the main account, more money is available for investment instead of having small unused amounts in a variety of sub-accounts. Often, the master account has additional advantages, such as .B a higher interest rate on balances, compared to sub-accounts. The main account is not a current account, but a different and more profitable type of bank account. Thus, ZBCs maximize the funds available for investment and minimize the risk of overdraft fees. Using a ZBA as an expense control mechanism is especially useful for managing ancillary costs in a large organization. While operating costs are often easier to predict and finance, ancillary costs can be inherently variable.

By limiting quick access to funds via debit cards, it is more likely that the appropriate approval procedures will be followed before finalizing a purchase. This allows for easy tracking of transfers and reconciliations between accounts A checking account that only receives enough money from a concentration or „master“ account to cover checks presented daily in order to maintain a balance of zero. .