Zero Balance Accounts (ZBA)
Do you have excess funds sitting in one account and overdrafts, or funding nightmares, in another account? Zero Balance Accounts (ZBAs) are an effective way to separate your cash flows while concentrating your funds into a single account. A ZBA works like this:
- A single account is established as your Lead Account.
- Separate Sub Accounts are established for each location, fund, or special need.
- As checks clear the Sub Account, Columbia Bank automatically looks to the Lead Account for funds to cover the check, and moves exactly that amount to the Sub Account, thus returning the balance in the Sub Account to zero.
- If you make deposits to a Sub Account, Columbia Bank moves the entire deposit to the Lead Account, returning the Sub Account to zero. This provides an accurate picture of your true collected balance position, neatly combined into a single account.
Benefits with ZBAs
- Your cash is always where you need it. You'll never again have the situation where you have excess funds in one account, and overdrafts in another.
- There is no need to maintain working balances in multiple accounts.
- You can maximize investment opportunities by concentrating available funds into a single account.
- A separate payroll account may provide easier account management and reconcilement.