What is a zero balance account?
A zero balance account is a subsidiary account that is maintained at a specified balance (usually zero) and is electronically linked to master account.
Who they're for
For companies interested in consolidating funds from several accounts in the same state.
Benefits
- Statements on the master and subsidiary accounts provide detailed account transactions.
- Maximizes use of funds and increases funds control.
- Unlimited number of subsidiary accounts can be linked to a zero balance account master.
- A target balance other than zero may be established.
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