If you are a small business owner, having a business Current Account to maintain a zero-balance might feel counterintuitive. You can use it to fund a specific expense, such as payrolls, departmental spending, petty cash, travel reimbursements, or other business needs. Funds are sent to a Zero-Balance Savings Account only when necessary for frequent debits.
Small businesses often use a Zero-Balance Account, which helps them control finances, increase efficiency, and allow their funds to take advantage of higher interest rates. The interest earned on idle funds is credited to the account every quarter.
What are its advantages?
A Zero-Balance Savings Account offers many advantages to small business owners. It saves them time, as they need not manually move money and track funding. They can set-up automated transfers from one account to another, even if both accounts are in different banks. Storing funds in the main account and automating transfers minimises the chances of accidental overdrafts, clerical errors, or racking up fees.
Opening these Zero-Balance Bank Accounts helps monitor spending for different departments, short-term payroll, and more on a granular level. If one entity is overspending, you may spot it with this account rather than manually tracking funds. Moreover, it lets you aggregate funds for investment in other business goals rather than sitting idle.
Which businessowners should consider opening them?
Zero-Balance Accounts are ideal for businesses that maintain separate accounts for payroll, petty cash, and travel reimbursements. Small businesses can focus on their funds in an operating account and make disbursements from subsidiary accounts, which lets them maintain a zero balance. Businessowners can use the Zero-Balance Account for debit transactions and receivables.
They can collect funds safely outside of their main operating account for receivables. The funds from the receivables account are pushed to the operating account instead of being pulled from it. You can quickly determine your daily cash position and optimise your funds at the end of the day.
How to open the account?
To open a Bank Account, you must visit the bank’s branch or online platform. Enter the details as requested, gather the documents, and upload them online for the bank’s representative to verify. You do not require an initial deposit into this account. However, it is best to check your bank’s website for more information.
A Zero-Balance Savings Account eliminates the burden of maintaining a minimum balance. It lets you manage your finances, and it offers accessibility to Digital Banking, account opening with low initial deposits, rewards and annual benefits, and no fees or penalties for non-maintenance of a minimal account balance.
Conclusion
Eliminate time spent on funding additional accounts to cover your cash flow with Zero-Balance Accounts. Sweep-in facilities are also available to fund higher-yielding accounts while reducing administrative costs.
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