What is a Zero Balance Account?


A zero-balance account, sometimes called a 'ZBA,' is a business-oriented bank account that usually has a balance of $0.


How Does a Zero-Balance Account Work?


Let's say restaurant company XYZ keeps its cash in a checking account. Every Tuesday, its accounting department writes checks to pay the bills due that week. This week, the amount of those checks is $40,150.


Company XYZ wants to keep its cash centralized primarily in a savings account that pays interest. To keep as much money in the interest-bearing savings account, it moves only $40,150 out of the savings account and into the checking account on Tuesday so that the checks clear.


Why Does a Zero-Balance Account Matter?


Zero balance accounts help companies maximize interest revenue, but they also lead to additional money transfers and more bookkeeping work.

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