There is no need for an employee to do this manually, as the process is fully automated. ![]() Whenever funds are required in the ZBA checking account to cover a charge or transaction, money is transferred from the master account in the exact amount required. Here the account holder decides the minimum amount to be kept in his/her savings account. These accounts are designed to maximize funds that may be sitting idly by transferring or sweeping them into a higher yield investment option automatically. Sweep account definition, a checking account from which money in excess of a specified amount is automatically transferred to another account or to an investment that earns a higher rate of return. Many Banks have introduced a savings cum fixed deposit product called a Sweep Account. A sweep account is a type of bank or brokerage account that automatically transfers funds that exceed a predetermined amount into a higher interest-earning investment account. The master account provides a centralized place to manage an organization's funds. A sweep account is a special type of account that can be linked to a bank account or brokerage account. Though this limits clerical errors and incites operational efficiency in some ways, a business must still monitor and reconcile its bank statements. ZBAs are also typically heavily automated.ZBAs promote risk mitigation, as a company has greater control over where it cash balances are and what unauthorized spending may occur. Sweep account refers to a brokerage or bank account whose cash balance is automatically transferred into an interest-bearing investment, such as a money.An organization may have multiple zero balance subaccounts to monitor and track spending by department or project.ZBAs are not consumer products but are used by larger businesses.A zero balance account (ZBA) is an account in which a balance of zero is maintained by transferring funds to and from a master account.
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