Investor Glossary-zbaInvestor Glossary-zbaInvestor Glossary-zbaInvestor Glossary-zbaInsightful stock market charts - Click here
investor
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

ZBA

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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use