Woman doing inventory at a warehouse

Zero Balance Accounts (ZBAs)

Manage Multiple Accounts Simply and Maximize Earnings!

An automated way to combine ALL of your company's funds into one account. 

We understand that many businesses have multiple checking accounts, such as operating, payroll, petty cash or other accounts. Zero Balance Accounts (ZBAs) provide an automatic means to combine ALL of your company’s funds into one account to help you maximize the use of your cash.
How it Works
Your Providence Bank Treasury Services Banker will work with your business to link your subsidiary accounts to your main operating account/ concentration account. Examples of subsidiary accounts are payroll, accounts receivables and deposit tracking.
  • We will work with you to establish target balances for the subsidiary ZBAs. Balances for the ZBAs are automatically set to zero, but you can establish balances other than zero.
  • When checks or other debits are presented for payment, from subsidiary ZBAs, funds are automatically transferred from the parent account to the ZBAs to cover the total of the presentments.
  • Deposits made to the ZBAs are also automatically transferred to the parent account to maintain the zero balance (or other predetermined balance) in your subsidiary accounts.
  • Your account statement will reflect all automatic transfers to-or-from your operating/concentration accounts and your ZBAs.
Features and Benefits
ZBAs offer an easy and convenient way to automatically consolidate funds into one account that can then be used to fund disbursements or investments. Plus, it frees employees from having to transfer funds manually.
  • Cost Savings.  ZBAs provide an inexpensive way to concentrate all your funds into your main operating account/concentration account to maximize your return or fund accounts like payroll.
  • Automated Bookkeeping.  Transfers are made automatically, eliminating the need to manually monitor balances and initiate transfers.
  • Greater Control of Cash Flow.  Your business can control balances and funding of the operating/concentration account and its related ZBAs as if they were one large account.
  • Cash Concentration.  All deposits can be made to the operating/concentration account, thereby eliminating the need to make deposits to multiple accounts.
  • Automate Nightly Transfers.  Automate nightly transfers to sweep accounts to earn interest or reduce outstanding debt.
  • Reduce Overdrafts.  Help ensure that operating accounts have the funds necessary to cover transactions.
  • Access Reports.  Access reports in Business Online Banking daily to track account activity.
 Contact a Treasury Services Banker to learn more.