Concentration account

Concentration account
A single centralized account into which funds collected at regional locations (lockboxes) are transferred. ...

CONCENTRATION ACCOUNT - A cash management tool. A single account established by an entity, usually in c...
CONCENTRATION BANKS - A small number of large banks a firm contracts with to periodically collect the f...

Concentration Account
Also called clearing or omnibus account. Account in which funds of one or more customers are consolidated, pooled or commingled. Used by a financial institution for bank-to-bank or administrative transactions.

Concentration Account
A deposit account used to aggregate funds from several locations into one centralized account. Concentration accounts are used by institutions to process and settle internal bank transactions.

Movement of cash from different lockbox locations into a single concentration account from which disbursements and investments are made.
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Personal Finance Glossary ...

acceleration of cash collections from customers by having funds sent to several geographically situated regional banks and transferred to a main concentration account in another bank.

See also: Concentration, Banks, Expense, Disbursement, Incorporation