Investor Glossary-zbaInvestor Glossary-zbaInvestor Glossary-zbaInvestor Glossary-zbaInsightful stock market charts - Click here
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z


The HTML to link to this page

A ZBA, or zero-balance account, is a type of checking account that maintains a zero balance. Funds are transferred into a ZBA in amounts only large enough to cover checks to be paid. Typically, at the close of a business day, funds are moved between the ZBA and related accounts, leaving the ZBA with a zero balance. These transfers may be made automatic depending on the particular features offered by the financial institution and a ZBA may be automatically linked to one or several other related accounts. A ZBA has several advantages. A ZBA allows for the consolidation of money into a primary account if so preferred. A ZBA eliminates excess or idle balances and more efficiently manages cash to improve the earning power of funds. And, a ZBA can reduce the occurrence of costly overdrafts and the need to monitor numerous accounts. An example of the use of a ZBA is when needing to disburse funds to and from multiple accounts, such as those for remote offices. A ZBA can be set up to retrieve funds from remote office accounts and to disburse funds to the offices, automatically and such that the disbursement account maintains a zero balance.

Rate this ZBA definition...

Learn about investing with the Investor Glossary Term of the Day

Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.

Popular Terms: option premium, command economy, retained earnings, deferred revenue, risk management, 401a, dividends payable, 1031 exchange, Zero Cost Collar, annual return, covered put, per diem, 144a, APR, liquidity ratio, FTSE, current ratio, average price per share, reverse mortgage, real GDP, limit order, stock market close, stock split, wholly-owned subsidiary, deferred tax, in escrow, labor relations, required rate of return, debt service coverage, FICO score, implied volatility, EBITDA, quality assurance, cancelled check, minority interest, margin rate, balance sheet, ex-dividend, class C shares, irrevocable trust, open position, 1035 exchange, phantom income, ex-dividend date, inflation, diluted share, VIX, Key Rate Duration, LIBOR

Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use