Zero Balance Accounts

1. A zero balance account is a bank account that allows for automatic same-day transfers to or from a concentration account. A zero balance account allows a firm to move excess cash balances into a single account or to control the disbursement of funds from a central pool of money. The balance in the account is maintained at zero by transferring money to a concentration account. See also concentration banking. A disbursement (checking) account that has a zero balance. As checks are submitted for payment, funds are transferred from another account to exactly cover the amount of the checks, generally on a daily basis.