Zero Balance Accounts
Maintain Account Balances & Pool Funds
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 you can maintain a zero account balance. With the elimination of excess balances in your accounts you can maintain greater control over your disbursements.
You set target balances for the subsidiary accounts that act as a daily trigger for account transfers to and from the parent account. 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 funds are consolidated into a parent account. The parent account is linked to all of the subsidiary Zero Balance Accounts. Zero Balance Accounts can be established for divisions, subsidiaries or for operating accounts such as payroll or payables.
- Automatic transfers - Funds are transferred automatically to and from the parent and subsidiary accounts.
- 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 one parent account. This transfer of funds to and from a single parent account occurs automatically, relieving you of the day-to-day administration involved.
- Target balances - 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 Credit. 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 by reducing clerical reconcilement time and operating costs associated with the manual monitoring of balances and account transfers
- Reduces overdrafts through automatic transfers from a concentration account.
- Easily audit transactions by maintaining an account level audit trail of transactions.
- Centralizes funds - Keep your funds centralized while allowing for decentralized control over payments and/or collections.
- Maximizes funds - by making more funds available to you for investment.
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. (Pacific Time) Monday through Friday (800) 559-0020 select option 2.