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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.

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