Zero Balance Account

Definition

ZBA. A checking account which always maintains a balance of zero. Whenever the corporation needs to write a check, they transfer money into the account for the exact sum for which the check will be written, so that once the check is cashed there will once again be a balance of zero in the account. This helps the corporation avoid having money in too many different places.

Use this term in a sentence

You may want to keep a zero balance account just in case you ever need to have an extra account handy.

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It was a zero balance account and that was a shame because there had been funds put in it not even a week ago.

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Within the operations department, they had to move money for remittances. They would move the money from one account to a zero balance account and then clear that money out.

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