Zero Balance Account
1st Mariner Bank’s Zero Balance Account (ZBA) service lets your company eliminate excess balances in separate accounts by concentrating them into one operating account, while disbursements or collections are made from subsidiary accounts, called ZBAs. It provides an easy, fully automated way to segregate specialized payment and deposit activity into individual sub-accounts while retaining cash in a single master operating account. The service automatically transfers funds to or from the concentration account at the end of each business day to offset the net activity in each zero balance sub-account. Since your company’s Zero Balance Accounts will always be brought to either a zero or a pre-established target balance, they will never contain idle funds. Instead, these excess funds can be put to more profitable use, such as short-term investment opportunities—all while minimizing the administrative time and effort required to monitor multiple accounts and make timely transfers.
Features & Benefits:
Transfers funds on an as-needed basis.
Never leaves your funds idle in multiple depository accounts.
Eliminates the need for anticipatory funding of disbursement accounts.
Automatically transfers funds, eliminating the need for manual transfers.
Reduces the time and effort needed to reconcile multiple operating accounts.
Provides local payment or deposit authority while maintaining centralized cash control.
All but eliminates the risk of costly overdrafts.
How Zero Balance Bank Accounts Work
Your company establishes one master operating account and as many subsidiary Zero Balance Accounts as needed for disbursements and/or deposits. Checks are written on a ZBA just as on any other account, however, the need to manually fund the checks is eliminated. Each day, the total of all checks presented against the ZBA is offset by a debit to the master operating account, bringing the ZBA back to zero or a pre-established target balance. For collections, each day, all available funds will be transferred automatically to the master operating account, keeping funds concentrated in one main account. Once again, the ZBA is brought to zero or a pre-established target balance. Transfers are easily tracked through cross-referencing account numbers on bank statements.
Setting Up Your Zero Balance Bank Account
A 1st Mariner Zero Balance Account is a savvy funds management solution your business may be able to use to leverage cash on hand, without adding administrative time or expense. A conversation with one of our Treasury Management representatives will give you the answers to inform your decision. Call us today at 410-735-2003, stop by a nearby branch or email us at TreasuryManagement@1stmarinerbank.com.