Treasury Management

 

Zero Balance Account

 

A Zero Balance Account provides efficient, centralized use of available funds for investment or debt reduction purposes by maintaining account(s) at either a zero balance or other predetermined minimum balance.

 


BENEFITS

 

  • Increases control while segregating disbursements and deposits
  • Reduces idle balances and minimizes risk of overdrafts
  • Eliminates forecasting and funding guesswork
  • Pools funds for investment or debt reduction
  • Enhances account and audit control
  • Improves control of deposits and/or checks
  • Offset account charges with compensating balances

 


 

HOW IT WORKS

 

  • All funds are maintained in the master account.
  • Single or multiple subsidiary account(s) link to your master account.
  • Detailed monthly statements are provided for the master and Zero Balance Account(s).
  • At the end of the business day, entries are automatically generated, offsetting the deposit or check activity with its designated master account.
  • Offsets can be either a netting of deposits and checks or an exact offset of deposits and/or checks.
  • An unlimited number of subsidiary accounts are available.