Zero Balance Accounts
Move Funds Efficiently for Optimal Liquidity and Investment Management
City National's Zero Balance Accounts (ZBA) allow you to easily and automatically maintain account balances and pool funds. You set up automatic transfers from a master account (commonly referred to as a parent account or concentration account) in amounts that cover checks so that all excess funds are in the master account. With the elimination of excess balances in your accounts you can maintain greater control over your funds and disbursements.
For accounting purposes, transactions are segregated at the account level.
How it works
- You set up and link City National parent and subsidiary accounts.
- You set target balances for the ZBA subsidiary accounts. Balances for ZBA are automatically set to zero, but you can also establish balances other than zero.
- When checks or other debits are presented for payment to be drawn from a subsidiary Zero Balance Account, funds are automatically transferred from the parent account to the ZBA to cover the total of the presentments.
- Deposits made to the Zero Balance Account are also automatically transferred to the parent account to maintain the zero balance (or other predetermined balance) in your subsidiary account.
Features & Benefits
- Parent and subsidiary accounts - All of your excess funds are consolidated into a parent account. Subsidiary Zero Balance Accounts can be established for divisions, subsidiaries or for operating accounts such as payroll or payables.
- Multi-tiering availability - Allows multiple parent accounts to be linked together within the same ZBA relationship.
- Manages cash automatically - Automatically maintains target balances and consolidates (or pools) funds. You can control company funds more effectively - even when the funds are located in several City National accounts - by pooling them into parent accounts. This transfer of funds to and from a parent account occurs automatically, relieving your staff of the day-to-day administration involved.
- Target balances - ZBA account balances are automatically maintained at a balance of zero. However, you can establish balances other than zero for end subsidiary accounts and can offset service charges with Earnings Credits. At the end of each business day, the service will consolidate all balances over your pre-determined balance amount into one parent account.
- Reporting - Whether you're depositing or disbursing, City National provides detailed independent reporting at both the Zero Balance Account and parent account levels.
- Saves time - Reduce clerical reconcilement time and operating costs associated with manually monitoring balances and account transfers.
- Reduce overdrafts - Automatic transfers from a concentration account eliminate the guesswork.
- Easily audit transactions - Maintain an account level audit trail of transactions.
- Centralize funds - Keep your funds centralized while allowing for decentralized control over payments and/or collections.
- Maximize funds - Make more funds available for investment and reduce reliance on short-term borrowing.
To sign up for a Treasury Management service or for more information, please contact us or call Treasury Management Client Services between 5:30 a.m. and 7:00 p.m. (PT) Monday through Friday (800) 599-0020 select option 2.