zero-balance account


zero-balance account
zero-balance account ( ZBA)
A cash management service offered by banks. A bank checking account that can accept deposits and/or make disbursements but that is always maintained at a zero balance. The zero balance is maintained by transferring just enough funds from or to a concentration account to offset each day's activity.
The concentration account is sometimes called the parent account and the zero-balance account is sometimes called the daughter account or subsidiary account. American Banker Glossary
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( ZBA)
A checking account in which zero balance is maintained by transfers of funds from a master account in an amount only large enough to cover checks presented. Bloomberg Financial Dictionary

Financial and business terms. 2012.

Look at other dictionaries:

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  • parent account — See zero balance account ( ZBA); concentration account …   Financial and business terms

  • daughter account — See zero balance account ( ZBA) …   Financial and business terms

  • subsidiary account — See zero balance account ( ZBA) …   Financial and business terms

  • concentration account — A cash management tool. A single account established by an entity, usually in conjunction with one or more zero balance disbursement accounts. Sometimes the concentration account is referred to as a parent account while the associated zero… …   Financial and business terms

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