BUSINESS BANKING

Zero Balance Account (ZBA)

Forget to fund your payroll account? Are you frustrated to see excess balances in subsidiary accounts? Zero Balance Accounts are a convenient way to manage funds in multiple accounts. The ZBA relationship is a simple and standard account structure for customers who wish to automate the funding of certain accounts from a master account, or to utilize the service to concentrate funds into the master account.

How it Works

As you establish a ZBA relationship, you select one master account, and any number of subsidiary accounts. The bank activates a connection between these accounts whereby your funds move automatically, to and from the Master account. Any funds in your subsidiary account(s) are 'swept' into the master account at the end the day in nightly processing. As checks are presented against the subsidiary account, funds are automatically swept from the Master account to cover the in-clearing checks. The service provides flexibility to meet your funding needs or concentration purposes. The ZBA service works for both needs, and offers convenience and simplicity to your daily banking.

Ideally your subsidiary accounts will have a zero balance each night; however, if you prefer to leave a target balance in the subsidiary accounts, First American Bank can also accommodate your request. This would simply be a Zero Balance Account structure with a 'target' balance. This concept of keeping a target balance in the subsidiary or ZBA account is employed by customers who may have checks presented for payment at a First American Bank teller window. This can help if your employees routinely cash checks over the counter.