Service Description
Zero Balance Accounts (ZBAs) eliminate manual transfers of funds between accounts, reduce idle cash, and reduce overdrafts. ZBAs automatically transfer funds from a disbursement or depository account into a simple master account. This process simplifies funds transfer activity and maintains account autonomy. This product is especially useful for funding multiple disbursement accounts on an “as needed” basis. At the end of each business day, IronStone Bank automatically transfers funds from a master account in the exact amount needed to cover disbursements. ZBAs may also be used to automatically move deposits from multiple depository accounts into a related master account. These features allow companies to consolidate all bank balances and create one pool of funds from which to determine daily cash position and optimize investments.
Features & benefits
- Prevents overdrafts and related costs.
- Eliminates idle balances in disbursement accounts to increase investment income and reduce borrowing costs.
- Reduces administrative time and efforts for monitoring daily cash position.
- Eliminates the need to initiate manual transfers.
- Allows customers to maintain separate bank accounts for internal auditing purposes.
