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What is a Zero Balance Account & How Will it Benefit My Business?

A zero balance business account (ZBA) is one of the many banking products that business owners should utilize to maintain financial efficiency and save time. A zero balance account is a helpful tool that works for almost any business.

What is a Zero Balance Account?

A zero balance account is a type of checking account that receives only enough funds from the concentration account to cover checks presented each day in order to maintain a balance of zero. ZBA accounts are used to eliminate excess balances and increase investment opportunities.

A zero balance business account is a great way for business owners to keep their recurring payments organized. Instead of having to fund multiple accounts for different payments, a ZBA allows funds to be streamlined into one account. This ensures there are adequate funds available and that payments are made in full. Since this account maintains a balance of zero, funds are maximizing interest in the central account instead of sitting in a sub-accounts waiting for payment due dates.

Zero Balance Account Benefits

There are three primary zero balance account benefits:

  • Saves time: A zero balance business account can be a huge time saver for business owners and their employees. Instead of having to manually deposit funds in the appropriate account for each payment, zero balance accounts automatically move enough for each payment, saving your team time and effort.
  • Organizes payments: Instead of manually keeping track of multiple accounts and payments, zero balance accounts will ensure there are enough funds to automatically cover payments without extra effort from your team, preventing missed payments or accounting confusion.
  • Maximizes funds: A zero balance savings account guarantees you are maximizing interest earned on your money. Instead of having excess funds sit in a payment account, a zero balance savings account keeps as many funds as possible in the interest-bearing account and only moves money to make payments when they are due.

Is a Zero Balance Account Right for My Business?

Zero balance accounts are not a consumer product for personal use. However, almost any business can benefit from the use of a zero balance saving account since there is no manual transfer. These accounts are ideal for automatic payroll, which not only saves the accounting staff time and effort but saves employees from the stress and frustration of potentially late paychecks. For bigger or national companies, more than one zero balance business account may be required, but most small businesses only need one to manage payments.

How to Find Banks Offering Zero Balance Account

If you are interested in opening a zero balance business account, talk to your banker. The most important thing to consider when talking to banks offering zero balance account are the fees. Fees differ from bank to bank, so it is important to fully understand the fees associated with these accounts. Typically, community banks offer the lowest fees for zero balance accounts.

At Revere Bank, we work with businesses to customize products and services to their specific needs. With low fees and personal service, we partner with business owners in their success. To find out how a zero balance account can benefit your business, contact our cash management professionals (David West: to discuss your business’ goals.

This publication does not constitute legal, accounting or other professional advice. Although it is intended to be accurate, neither the publisher nor any other party assumes liability for loss or damage due to reliance on this material. Websites not belonging to this organization are provided for information only. No endorsement is implied.

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